OnDemand WTP Pricing Research

Coin-Op 101: Power Profits with Data-Driven Pricing (Part 1) | American Coin-Op

It is also likely driven by how we develop and maintain our stores. For instance, if you provide a far better customer experience than the store down the street, you really don’t need to meet/compete or be lower. I may not have seen it that way as a relative newcomer to this business a couple years ago, but I definitely do today. Making data-driven decisions on pricing isn’t just a “nice to have.” From my side, it’s the only approach to effectively managing your business.

Assessing the quality of your store versus others in the market is the first step in letting data drive pricing decisions. True, it’s not a computer that’s spitting out this information, but it is still data — first-hand observations data — and it is just as important.

When I first opened, I toured other Laundromats around the area and determined the pricing the market would bear. However, it soon dawned on me that if I was providing a high-quality experience, a cleaner store and bathrooms, newer equipment (with no out-of-order signs), I should get more for the experience I created.

In deploying this strategy, owners have to know up front and be comfortable with the fact that there is a small group of “price shoppers” that will always go with the lowest price in the market. While they may visit if you host promotions, they won’t be regulars. And it’s OK to not have them as regulars.

So the first step in using data to guide pricing is building a strategy around the information gleaned from visits to the competition. How does your store stack up? How do your equipment capacities, speed, efficiency and cycle flexibility measure up? All are worthy of consideration in developing your pricing plan.

The second part of setting up to make good data-driven pricing decisions is investing in the controls/management systems that provide easy access to operations information.

Read complete article here:

Coin-Op 101: Power Profits with Data-Driven Pricing (Part 1) | American Coin-Op.

Post a Comment

WP-SpamFree by Pole Position Marketing