Customers are largely driven to patronize a certain product because of its price. Is it worth every penny? A lot of ingenious business ideas have gone from wonderful to nothing because prices were not set at an attractive value for the customer.
In the area of labor services, hourly rate had been the standard pricing model. However, to drive more sales and profit, flat rate pricing has been introduced lately to lure in customers with what looks like a real value for the money. Flat rate pricing is a pricing model wherein a certain price is fixed or set before the service starts. In this setting, you will pay the agreed payment despite the hours of work or the intensity of labor expended.
Flat rate pricing has made its debut in the cleaning service industry. More people prefer a fixed price than an hourly job because of the latter’s uncertainties with time completion. It is considered as a successful model because of its advantages.
Customer based approach
The best reason to offer a flat rate price service is its stress free nature, this is why it is considered a customer centered approach. Contractors will diagnose the services needed to complete a job and will set a price up front-- not an estimate, but a fixed price that will carry on until these services were rendered successfully. This gives customers relief since they don’t have to worry about paying a biased fee.
Being fair with the contractors
The concept of flat rate pricing sounds unfavorable to the contractors-- imagine working for an unknown amount of time for the same price? But the effect of flat rate pricing comes in long term. What others thought as a customer based approach is also a productivity based approach. Flat rate pricing teaches contractors to do their job efficiently, which leads to customer satisfaction and thus making them more likely to be hired or commended for another service. It does not only make customers happy but makes the business better as well.
Better business
Happy customers plus competent and honest workers are the key to a successful business. Some business owners opt for flat rate pricing because of the increase in customer volume, thus higher profitability. Although it is not the case for all companies, cleaning companies deem fix priced services as more preferred by customers than the hourly rate strategy.
Winner, Winner, Chicken Dinner
Everyone wins in this. However, it is not fail- proof. Certain factors should be watched out for since there could be potential disadvantages that could bring down these individual groups spontaneously. The key to maximizing the full potential and benefits of flat rate pricing is setting the price at a good value-- this does not mean it is cheap nor expensive, but something that would bring your business profit while offering the best deal possible for the customers. At the end, everyone is happy and everyone is the winner.
In the area of labor services, hourly rate had been the standard pricing model. However, to drive more sales and profit, flat rate pricing has been introduced lately to lure in customers with what looks like a real value for the money. Flat rate pricing is a pricing model wherein a certain price is fixed or set before the service starts. In this setting, you will pay the agreed payment despite the hours of work or the intensity of labor expended.
Flat rate pricing has made its debut in the cleaning service industry. More people prefer a fixed price than an hourly job because of the latter’s uncertainties with time completion. It is considered as a successful model because of its advantages.
Customer based approach
The best reason to offer a flat rate price service is its stress free nature, this is why it is considered a customer centered approach. Contractors will diagnose the services needed to complete a job and will set a price up front-- not an estimate, but a fixed price that will carry on until these services were rendered successfully. This gives customers relief since they don’t have to worry about paying a biased fee.
Being fair with the contractors
The concept of flat rate pricing sounds unfavorable to the contractors-- imagine working for an unknown amount of time for the same price? But the effect of flat rate pricing comes in long term. What others thought as a customer based approach is also a productivity based approach. Flat rate pricing teaches contractors to do their job efficiently, which leads to customer satisfaction and thus making them more likely to be hired or commended for another service. It does not only make customers happy but makes the business better as well.
Better business
Happy customers plus competent and honest workers are the key to a successful business. Some business owners opt for flat rate pricing because of the increase in customer volume, thus higher profitability. Although it is not the case for all companies, cleaning companies deem fix priced services as more preferred by customers than the hourly rate strategy.
Winner, Winner, Chicken Dinner
Everyone wins in this. However, it is not fail- proof. Certain factors should be watched out for since there could be potential disadvantages that could bring down these individual groups spontaneously. The key to maximizing the full potential and benefits of flat rate pricing is setting the price at a good value-- this does not mean it is cheap nor expensive, but something that would bring your business profit while offering the best deal possible for the customers. At the end, everyone is happy and everyone is the winner.