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In my local market there is a weird phenomenon. The price difference between premium and standard clients is around $5. I tested a lot of different price points
by orangethirty 14y ago
In my local market there is a weird phenomenon. The price difference between premium and standard clients is around $5. I tested a lot of different price points, but there was always about $5 difference. Standard customers did also not want to pay anything above $30 for an exterior/interior wash/cleaning. My average sale was $20, if which I made about $6 (30%) in net profit. Not bad? Awful, due to the low volume aspect of the business. I could only do one client at a time, and spent about 45 minutes on each client. Could only book around 8 good clients in a day. It was hard work for little money (unsustainable). Then why did I do it? Because I thought that if I put out an app for people to use to book car washes through their phones, then I could scale the business by selling the sales leads to other on-site car washers and thus removing myself from the hard aspects of the market. I would get $1 for each lead while not lifting a finger. Problem is the app did not test positive at all. Not even in the iPhone (premium) market. I supposse it is a local thing, but I can't change that.
- tgrass 14y agoIf the margns had been higher, would you have tested other markets despite the low volume?
- orangethirty 14y agoI did, and the bigger margins were just a couple of dollars when all was said and done. In the end, I was still wasting my time with either option. Not complaining because I learned a lot from it.