…especially for a non-coding person like me. I’ve got the framework set up for online ordering for the apartment division services. I’m afraid that there is no way to have 2 different shopping areas so I’m going to have to have one e-commerce area that has a category for apartments and a category for residential services. There is a fairly large problem with that, though.
There are a lot of people who do not understand why we charge so much less for apartment services than residential services. For example, to provide a standard steam cleaning in a 2 bedroom apartment we charge $45, but for the same amount of carpet in a residential environment (approximately 640 square feet) the price would be $192.
A simple explanation as to why this is the case:
1) The cost to acquire a new client, whether it’s an apartment community or a home-owner, is approximately the same.
2) The cost of chemicals and equipment to provide the service is approximately the same.
3) The cost of labor is substantially higher for the residential home because of the necessity of communication before, during, and after the cleaning. There is a higher standard of care in this market segment.
4) A homeowner will utilize our services an average of once every 15 months over a 6 year period, or 4.8 times for a total revenue of $921.
5) An apartment community with 200 units will have us clean approximately 8 apartments each month and need an average of $60 in additional services for each apartment: approximately $60,500 over the same 6 year time frame.
The result: We are able to, because of the revenue and workload expectations that allow us to maintain a staff of trained technicians, provide apartment communities with a substantially reduced pricing structure.
Just a couple of the many facets of business that occasionally require an explanation because we do get asked why we charge different amounts for the same service every once in a while – quantity discounts and economies of scale.
Position: Director-Marketing & Media Relations / Certifications: Certified Restorer #00464