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 What is your current Pricing
Strategy?
- Price Based: the discounter
or at least holding the position of the least expensive prices
- Value Based: the more
expensive provider but one who also provides more value added offerings
- Niche Based: serving a
specific community, faith, or other group(s)
- Middle of the Road: trying
to be all things to all people by having average prices and average
offerings
Out of these four strategies, the forth one
may seem to be the one with the opportunity to get the most calls, but
in reality it is the hardest one to maintain if your competitors can
effectively communicate their benefits.
Defending your Position
No matter which position you choose, if you have a well thought out
pricing strategy and can effectively depend your position then you
should not have a problem with shoppers and competition. Price Matching is
not a Strategy - It's a cop-out! Sorry if this offends
anyone, but it would be
more offensive to your customers who pay full price to find out that
the next family paid half since they threatened to go to the
discounter. If you resort to this lame strategy - STOP!
Please download the Competitors Matrix
found on the Downloads
page and identify the areas that you provide more value, then
communicate those differences to your families.
Pricing Service Offerings and Product Offerings
This is a important mix of your over all pricing strategy. And
with recent research stating that consumers valuing products a lot
lower than service offerings, funeral home operators must ensure that
their pricing strategies are aligned with the perceived value of the
consumer. For more information, please read the article, It's Not
the Funeral Product Industry, which can be found on the Article page.
Call Counting and
Real Market Share - You could be the Market Leader and not Know it
A lack of focus
is evident by funeral homes tracking market share by only focusing on
call volume as an indicator. Even though each death represents
potential revenue, would it not be more prudent to track market share
dollars or even profitability per call versus the other
operators? This means that it is not just increasing one's call
volume that is important, but the type of call gained (or lost) that
matters. It would be better to lose two calls to a discounter and
pick up one from a value-based funeral home even though the funeral
home would be net minus one. It is interesting though to see
funeral homes fight over direct disposition calls (on price) and not
actively strive to get ones on the other end of the scale.
(ABC
is Value-based, Discounter is Priced-based, & Mid Road is stuck in
the middle)
Are you Ready to
Beat your Competitors at the Price Game and realize more Profit?
We can help you take control of your market in the following areas:
- Pricing
Strategy Audit: this complete overhaul of your pricing includes:
- Competitors Analysis
- Defining Market Position
- Call Counting vs. Real Market Share
Analysis
- Aids to equip staff against Price
Shoppers and Discounters
- Automated General Price List
- Creation
of Funeral Packages: by building value-added packages with our
proven formula and together with the necessary presentation materials
you will immediately increase
your
Average Funeral Value by at least $1,000 - guaranteed
- Automate
your General Price List:
this will enable you to easily produce price lists for your consumers
and regulators as well as easily review and raise prices by percentages
with minimal calculations
All pricing strategies are guaranteed to double your return on
investment with in 12 months!
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Pricing
Strategies