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Do you offer tiered pricing?

Started by TheHogRing, June 23, 2012, 09:00:34 am

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TheHogRing

HRR Mag recently published an interesting article by Ace Eckleberry of ACE Custom Upholstery & Rod Shop in which he discusses the benefits of offering customers service packages priced according to tier.

The piece makes for an interesting read - especially for shops looking to simplify the process through which they give estimates.

Check it out: http://tinyurl.com/75585am

Rich

THAT is the correct approach to have in this business. I wish I'd known this back when I had my custom auto trim business. Unfortunately for all concerned in the business transaction, I made the mistake of treating every customer more or less equally with the only difference being that some seemed to have more to spend than others. The approach explained in this article however, truly puts the customer in the place of choosing their level of service depending on what they can afford and what they are looking for. Many businesses do this today and many of us are following this approach when we patronize them although we may not be thinking it. Thinking is what this business owner has done however, as he seems to have thought the process through and arrived at a structure that works. The system takes the guesswork out of the picture both for the customer and the business owner because it draws a line around the job that says "this is acceptable and that is not". It defines the customer's expectations and in so doing, it dictates the price he will pay as well as the results he will get. Everyone can have a happy ending.
I like it.
I also like the fact that pricing was quoted. So many shop profile articles give no pricing guidelines which lead the reader to wonder what they should be charging. Unfortunately for many shop owners, this means working long hours for low pay and taking their rewards mostly from the satisfaction of having created something that will probably bring oohs and ahs from those who see it. Kind of like a starving artist, but I don't think this business owner is starving these days.
Rich
Everything's getting so expensive these days, doesn't anything ever stay at the same price? Well the price for reupholstery hasn't changed much in years!