Services

Pricing for Services

Problem

The auto accessories business has always provided services but not explicitly billed the customers for them (tire sales). There were not even fixed prices for the services.

Project Goal

Defining the optimal service level and setting prices (for a service price list).

Procedure

Empirical review of

Awareness
• Recognition
• Suppliers in the market
• Range of services
• Image/positioning
  
  Interests/Preferences
• Important factors
• Preferred level of service
• Accepted price range
• New service options
  
  Utilization/Value
• How frequent?
• How intensive?
• At what times?
  
  Satisfaction
• Appraisal
• Improvements

Measurement of market acceptance:

(See Figure 1 for an example)

• Screening by telephone to identify relevant consumers
• Determination of their specific area of interest regarding the services
• Personal interviews on-site

Of the 40 services previously offered, 15 were eliminated, 10 were reduced in scope, and the rest were improved and offered to the customers at list prices.

Results

Concrete definition of the type, scope, and prices for a total of more than ten new services "around the core product".

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