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Priority Pricing

Discussion in 'Business Fundamentals' started by Mustang, Sep 18, 2014.

  1. Mustang

    Mustang Member
    from NY
    Messages: 63

    Does anyone adjust their pricing depending upon how quickly service is provided following a storm? I have toyed with this idea for years. We only service developments and everyone expects service immediately following a storm. We have lost potential accounts because I cannot guarantee them service as quickly as they desire. With this is mind I have thought about priority pricing. Those who want immediate service following a storm pay a premium. Those who can wait till much later for service pay less.
  2. Camden

    Camden PlowSite Fanatic
    Messages: 6,604

    I can't imagine telling any of my commercial customers that they aren't a high priority for me. Obviously not everyone can be first on your list but you should definitely make sure your clients know how important they are to you and that providing superior service is your #1 goal.
  3. Mustang

    Mustang Member
    from NY
    Messages: 63

    It's not a question of telling a customer they are not a priority. It's a matter of the customer themselves choosing their priority. If they want to wait, they can get a better price. I never suggested providing less than superior service, it's just a matter of when that superior service will be provided.
  4. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 13,256

    Rick Kier over in Syracuse used to do this, not sure if he does anymore. A certain guy from that area who is a mutual friend of yours and mine said he kind of went the JAA route and started pricing everything low.

    I digress.

    Anyways, he had different rates for different blocks of time. For instance:
    2 AM-6 AM: $125\hour
    6 AM-8 AM: $150\hour
    8 AM-12 PM: $95\hour

    Or something like that. And obviously he wasn't giving hourly rates, just basing his prices on those rates.

    I hope all is well with you and yours. As well as can be, anyways.
  5. TCLA

    TCLA 2000 Club Member
    Messages: 2,707

    You'll have to pardon me...I'm slow. You said you "only service developments". What's that? Apartments and condos?

    And why would you devalue your service by charging less than you normally would for those at the end of your route?

    And I'm stuck on something you said multiple times in your op..."service following the storm". Do you normally wait until the storm is completely over before you mobilize?