December 26

Option Driven Menu Pricing

Average Service Ticket Goes Up By Two or Three Times When Presenting Options.

John Beathke, the owner of Beathke and Son’s plumbing in Chicago, reveals how adopting a new pricing strategy changed his business. John started with a time and material strategy, then progressed to flat rate and finally introduced option driven menu pricing.

At first, flat rate pricing just made sense to John. “Think about it”, he explains, “when we buy jeans or eat at a restaurant, customers know the price up front.” For years John offered a flat rate to customers, but five years ago it clicked – people like options.

As professionals, we can offer suggestions to customers, but ultimately we don’t own the property and therefore do not make the final decision. With this in mind, John determines that a minimum and a maximum service option resonates with customers.

Certainly, customers might choose the basic option, they have the right to choose that. However, as Beathke’s they offer six options for each solution, from a minimum fix to a replacement of all similar products in the property. Example? A service to replace three toilets in a property. You could add it here again if you want. It’s important to offer options and possibilities – it’s how customers like to buy.

When John presented six options with menu pricing, the average ticket price increased two to three times more than previously. The reason: You can’t sell what you don’t offer. Businesses can’t judge what customers want. It makes smart business sense for customers to decide the best option for them, rather than businesses assuming they know the best option.

At Beathke and Son’s Plumbing, technicians must offer the six options. Technicians who do not follow the pricing strategy, don’t fit with the company model and identity.

John adds that it’s important to help technicians understand why this strategy makes smart business sense. He offers technicians real-life examples, support and coaching to maximize opportunity with the menu pricing strategy.

Join Roger Daviston as John Beathke explains in depth the benefits of adopting option driven menu pricing for your business.

 

About the author 

Roger Daviston

Roger Daviston is a personal growth consultant who gets measurable results. He facilitates and encourages individuals to change behavior and make different choices to achieve better outcomes.

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