Background
Franchisees in the bathroom remodeling industry have exhibited significant pricing variations, leading to inconsistencies in consumer experience and profitability.
The Challenge
The goal was to establish fair and profitable pricing—ensuring affordability for customers while securing sustainable profit margins for franchise owners.
Implementation
- Defined specific materials to establish a consistent base price.
- Developed and introduced a Job Costing Calculator to accurately determine true costs, as well as the impact on Gross Profit dollars and Margin Percentages.
- Optimised the Scope of Work to align with customer expectations while maintaining reasonable profit margins.
Results & Impact
Franchisees leveraged the job costing tool to gain deeper insights into the Value of their Services and the financial dynamics of their operations. This enhanced visibility helped ensure Strategic Pricing Decisions that balanced customer satisfaction with profitability.
Client Feedback
"The pricing process was confusing before the implementation of the tool. Now, we have a clear and structured approach that simplifies decision-making."
Conclusion
With this new pricing strategy and tools in place, franchisees became better equipped to price their services effectively—meeting customer needs while sustaining a Healthy and Predictable Profit Margin