Questions

We project two revenue streams from our business- from client 1 and client 2. How do we set up competitive pricing.

The business will provide extra customer care where one is severely lacking costing client 1- shipping companies - wasted time and money and client 2- consumers - very poor delivery service. The business will bridge the critical missing communication gap.

2answers

I've attended this class in-person and the video version of Michael Dearing's class on pricing is great. You can see it here: http://vimeopro.com/harrisonmetalshorts/pricing

If you haven't already done so, I'd carefully study the effectiveness and uptake of "premium" services already offered by conventional shipping and package delivery companies. That might help understand how and when consumers are willing to pay premiums on top of an expected level of service.

How many shipping companies have you spoken to to confirm that they feel the pain around the "wasted time and money" associated with customer care? Have you asked them or worked with them to actually try and quantify the cost associated per customer? That would give you great insight onto how to potentially price the service.

I'd be happy to talk to you about this in more detail via a call.


Answered 7 years ago

Simplely create a revenue model that is the same for everyone and then have extra charges for specific situations. If the reduce a price up front you explain that the reduced charge comes with some strings attached like the customer can include a flyer in every bill they send out about you, or an ad on their website or a percentage of their future business or a % of ownership in their business. You are not charging them less in most cases you are charging them more and if the word gets out about what you did you can offer the same to those customers. Give nothing for free but in essence delayed payment or other types of payment you will get in kind. Call me if you would like to discuss this further......Ken Queen


Answered 5 years ago

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