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Pricing Ideas - Let Me Know Your Thoughts


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All of you have made great points.  Sherlock I think you're on the right track.  

Turn downs by choice are about 30% of the total Turn Downs.  Of course this may be minimized if more qualifying questions were asked like you said.  

You'll notice that if you buy 10 at a time then the pricing and warranty stays the exact same as it is now.  Only when you get the better warranty does the price go up.  Except for Double Head machines, they would now change to the Triple Head pricing. 

Can I get a Yay or Nay on these pricing ideas:

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Single Head Locations, Gumball Machines, Etc.  

Right of Refusal on All Locations.

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PLATINUM

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New Location Idea:  $49.99  1 Location, 1 Free Replacement (Good for 90 Days)  - $20 Replacements (Good for 2 Years)

New Package Idea:  $419.99 - 10 Locations, 3 Free Replacements  (Good for 90 Days) -  - $20 Replacements (Good for 2 Years)

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GOLD

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New Location Idea:  $39.99  1 Location,  $20 Replacements (Good for 2 Years)

New Package Idea:  $369.99 - 10 Locations, $20 Replacements (Good for 2 Years)

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Triple Head Locations, Double Head Locations, Sticker, Toy Machines, Etc.  

Right of Refusal on All Locations.

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PLATINUM

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New Location Idea:  $59.99  1 Location, 1 Free Replacement (Good for 90 Days)  - $20 Replacements (Good for 2 Years)

New Package Idea:  $519.99 - 10 Locations, 3 Free Replacements (Good for 90 Days) -  - $20 Replacements (Good for 2 Years)

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GOLD

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New Location Idea:  $49.99  1 Location,  $20 Replacements (Good for 2 Years)

New Package Idea:  $469.99 - 10 Locations, $20 Replacements (Good for 2 Years)

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Turn downs by choice are about 30% of the total Turn Downs.  Of course this may be minimized if more qualifying questions were asked like you said.  

70% of your declines are out of the vendor's control.

That sounds about right in my personal experience.

If 7-out-of-every-10 unsuccessful deliveries were caused by no fault of your customer, that sounds like a pretty severe issue.

Certainly an issue more important than those 30% that ARE declined by choice.

Increasing prices at any level is a hard sell if service still suffers.

Your pricing adjustment may address that 30% that we decline by choice.

But, before giving my yay or nay -- can you give us an idea of what's being done to correct the remaining 70% of the declines?

Not trying to give you a hard time.

Just trying to help you reach that unattainable goal (Perfection).

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Absolutely.  I don't want to give away all the details in the vision I have for KS but yes, absolutely, these 70% are top priority.  Speed and Quality are what our clients are worried about and that's what we're worried about. 

Approximately 50% of Turn Downs could be addressed with more qualifying questions.  We're simply not setup (yet) to address all of these qualifying questions.  I'm not one to make excuses for failures but here are some variables you may have not considered.  Not only is every machine different, but every client has different products, different climate concerns, different location preferences and different goals for their business.  In an ideal situation all of this will be considered.  And in the future it will be.

But, Let's get back to pricing because that's what this thread is about.

Regards,

Rob

P.S.  I got to laughing the other day.  A client was asking me if it was easy to get into the locating business.  I told him "Absolutely, it's very easy to get into the Locating Business."  "Oh Yeah" he said, and I said "Yeah, It's just absurdly hard to run one well!" 

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From my experience there's no motivation to order anything other than singles at first and upgrade later if location warrents. I have three KS locations right now that need to be down graded to a single, paying for a triple was not worth it. Didn't want to request replacement cause they can be salvaged as singles. My other 3 triple KS locations are doing good enough to keep triples in them though, 2 do $40+ a month.

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