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What do you guys think about having tier structured pricing? For instance you could have 3 packages:
1) Standard Package: customer pre vacuums, no furniture moving, no stain protector. $35 per room
2) Deluxe Package: we vacuum and move some furniture, sofas, and end tables. (No cumbersome, heavy, or expensive items) no stain protector. $50 per room
3) Premium Package: we vacuum, move most furniture (no beds, entertainment centers, GF clocks, etc., we will move dressers, night stands, etc) Stain protector included. $65
What effects do you think this would have on the “price shoppers”?
Do you think that a tier pricing structure would turn callers off?
How would it affect your current client base?i’m considering doing the same thing.
does anyone out there structure their pricing this way?
how’s it workin?I think it is doable here. The largest guy in the area has 17 vans and has a bronze, silver and gold package. I believe his pricing may be somewhat higher, but conceptually, identical. He has been in business 40+years now.
We have wanted to have something like this but just never found the right price points… We charge $45/room and $15/ room protector. Our pricing is similar to your proposal…and if discounted 20% is almost exactly that of your standard price.
Until this year, we had either 15% or 20% off coupons in the advertising YB/YP and got business at the $36 level…however, this year, with mostly 1 van running and getting better and larger jobs with little discounting..we are doing almost exactly the same amount of business, but are more profitable. We give 10% discounts now and some $10 cash discounts.
If you give any discounts off the Standard level, you get creamed and will NOT get higher food chain customers…just my opinion and thoughts.
The three level pricing is very , very good Ron.
Dave
I think this is a good idea, but it is very hard to promote. I have tried many diffrent styles of pricing in all my years in business but have found that most people just get confused if you trick it out to much.
I have been toying with a two level pricing structure. I don’t think I could keep 3 straight. Too compicated.
Since we don’t do any average quality I was going to go Deluxe and Premium pricing. I like DaveinPA’s % discount idea to go with that.
So far just toying with it.
Interesting concept!
The recent change I made in my pricing this:
I quote my top price on the phone and then explain that the more area they want done, the less soil and stains they have and the less furniture I have to move, I will then discount accordingly. I let them know that time is money and everything they can do to help me will save their money. Customers really seem to respect this honest approach. The advantage I have is the nasty jobs no longer get a discount and the fantastic jobs may get 25% off. Punish the pigs and reward the cleanies.
Who else is doing Tiered pricing like this? How is it working out? Thanks! Patrick
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