HVAC
Service Contract Pricing
-
RSI,
Inc. recently assisted a major diversifying
energy provider in deciding whether or not to increase the prices it charged
for its non-regulated furnace, water heater and air conditioning (HVAC)
service contracts. We completed our analyses in just a few weeks and
provided market-based evidence that:
1.
Current prices could be raised significantly
2.
Our suggested price increases would generate additional
annualized revenue of over $5,000,000 - an increase
of nearly 40%
3.
Few, if any, existing customers would be lost and the vast majority of
the price increase would flow through to the client’s bottom line, turning
a prior-year $2,000,000 loss into a current-year $3,000,000 profit
4.
Suggested new marketing tactics to counteract that 50% of our
client’s competitors who were advertising a lower price than our client, but
providing significantly less service and coverage
5.
New service contract offerings with fewer bundled-in features
would be well received if offered at or slightly below our client’s current
offering price (thus minimizing customer attrition and reducing contract
servicing costs)
6.
On an RSI,
Inc.-price adjusted basis, over 85% of our client’s competitors
were already charging more than our proposed new price.
RSI,
Inc. would be pleased to work with you to help you increase your
revenue and profits confidently through our analyses of rational and
market-based options for your product pricing.
 |
 |
 |
 |
| ©
Copyright 1998-2002 All
rights reserved |
| 
