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Pricing for Christmas Decor Installations

Pricing for Christmas Decor Installations. Market-Based Pricing. 2008 we moved from pricing based on labor burden to AMP system Annual Surveys of Pricing (12 most common items) have directed AMP pricing

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Pricing for Christmas Decor Installations

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  1. Pricing for Christmas Decor Installations

  2. Market-Based Pricing • 2008 we moved from pricing based on labor burden to AMP system • Annual Surveys of Pricing (12 most common items) have directed AMP pricing • Fascia, Windows, Canopy, Trunk, Branch, Shrubs, Stakes, 14” Lit Garland, 36” & 48” Lit Wreaths • Customer Does NOT Care About Your Labor Costs!

  3. AMP Pricing System • CDI Recommended Pricing based on Average Market Price (AMP) • AMP Modifier (% up or down) • Service Pricing • LED Service Pricing • Ownership Pricing (Turnkey) • AMP Modified up or down by a % Modifier • Individual Items can still be changed

  4. What Effects Price? What WE CAN CONTROL Out of OUR CONTROL Competition – Quality vs. Low-Cost Providers Economic Conditions • Quality of Service – CD Brand • Quality of Product – CD Brand • Professionalism – CD Brand - Perception • Local Organization Brand / Credibility • Expectations – Sales Process

  5. Can Closing Rate be Too High? • YES • System Closing Average is 54% • Effected by Strong Sales Person • Professionalism • Pricing • Don’t Leave $ on the Table by Pricing TOO Low • You Need Plenty of NOs • Think “Profitable Repeat Business”

  6. Market Vs Cost Factors • Market Factors are MOST important! • Still Important to Review Costs – Cash Flow and Long-range returns • New Pricing Tool Offers Detailed Analysis • Help to Set Target Margins • Have Incorporated Shipping Costs

  7. Key Costs Factorsfor Gross Profit • Product • Primary Materials / Decor • Accessories • Freight • Labor • Installation • Service • Takedown

  8. Target Margins • Some Items Bring Higher Margins • Use Target Margin tool to aid in setting your AMP Modifier

  9. LightRight Software Tools • Simple Global % Modifier • Order Level Modifier

  10. Review Pricing Tool • The Decor Group Intranet (www.tdgintranet.com) • Training/Pricing/2014 AMP Pricing • Includes • Service Listing – active and retired • CD Recommended Service, LED & Ownership Pricing • Material Costs • Power Consumption Table • Installation Time Table • Complete Costs Analysis • Margin Analysis

  11. New Item pricing • Animation – Light-a-rama Base $500 plus 25% • Animation – versaline 20% upcharge over LED mini • Tree Of Lights – Dedicated Tab • Garland Enhancements – Determined by item and combination of enhancements.

  12. Pricing Tool

  13. Best Practices

  14. Participation Speak Up & Contribute Ideas!

  15. Please fill out an evaluation for this breakout. They are in the back of the room, and you can turn them in at the registration table. Breakout Evaluations

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