Comments on: Volume Discounts

By: Dave Dugdale

Dave Dugdale — Wed, 17 Oct 2007 21:15:12 +0000

RedNeck,

Thank for your comments as always – I laughed about the Janet Reno part!

I had lunch with a good friend in the industry today and he also persuaded me not to do the all-you-can-eat plan. I think I will offer the 3% discount or no discount at all.

Actually no volume discount really matches my business plan better.

Dana,

Thanks for your suggestions. I am wanting to keep my company very small (ie. hire just myself) so I might not be able to do your suggestions. If I did your idea, I probably could do very well for myself, but this site is not totally about $, it is about me creating something – actually creating everything myself.

Not sure if it the best idea, but I am sure having a lot of fun with it right now.

By: Redneckrenter

Redneckrenter — Wed, 17 Oct 2007 20:58:20 +0000

Dave,

True Rentalhouses did prove that $299 AYCE (at the top end, but there were a substantial number who paid just$99 AYCE)was attractive to Property managers, but they also proved that this pricing structure put them in the poor house. They didn’t offer this AYCE scheme becuase they wanted to, they offered it becuase they had to. RentClicks had everyone covered on every facet with the exception of price. If it was a football game, the score would 210-0; If it was a race, RentClicks would have lapped the field a 100 times over; If it was a girl, RentClicks would be an international supermodel and Rentalhouses would be Janet Reno. And even though using RentClicks came with a higher price tag upfront, true cost of ownership was significantly lower. How? Becuase their ads filled vacancies more quickly than anyone in the industry – including print media.

You don’t want property managers determining your price point. By the same token would property managers let tenants telling them what rent should be? Only if you prefer drinking Schaefer Light

Gotta run, but next time I’ll tell you why you dont want an AYCE pricing scheme.

By: DANA REYNOLDS

DANA REYNOLDS — Wed, 17 Oct 2007 16:47:44 +0000

then you should take a partner or some one who has that experience some one who has another website like yours or experience doing sales if you keep traveling just going to shows you will be broke as you are in what co and you have to travel to az/na/ny /fla/ ect just to do a major show to get the people you need some one local in some of those markets to attend local NARPM meetings each month take tampa how do you plan to market there travel major shows -phone calls ,emails,flyers, some one local can help if you hoigh on the search engines any way it should be worth it ( and worth it to the pm to pay a higher price ) and the expense to have some make the sales calls for you in a local market as they will win in the local markets now soon once rent.com and rentalhomepros.com get in the game

By: Dave Dugdale

Dave Dugdale — Tue, 16 Oct 2007 20:17:25 +0000

True, they will not magically come over night, but after awhile word will get out and they might come over time.

I’m patient. And I am lazy, I not a sales guy.

By: ClamSauce

ClamSauce — Tue, 16 Oct 2007 20:09:42 +0000

RentalHouses had a sales force that made out bound calls and attended NARPM meetings every month declaring $99 or $149 or $299 unlimited to everyone. People are not going to magically come to your site just because you have a low flat rate. Any thoughts?

By: Dave Dugdale

Dave Dugdale — Tue, 16 Oct 2007 20:09:34 +0000

I have no idea how many I can sell since the only marketing I have done was the NARPM conference. I have done zero sales calls.

I don’t have that many PM using my site now, so I think this might be a way to get them interested.

My question is how much customer service is required for a $299 plan? Anyone out there with experience with that?

By: Dave

Dave — Tue, 16 Oct 2007 19:54:34 +0000

The $299 is really quite appealing to me because it would be very simple to implement and take care of.

I think the customer aspect of this plan would be very easy. RentalHouses proved that this was an attractive price.

By: ClamSauce

ClamSauce — Tue, 16 Oct 2007 19:48:37 +0000

Hey Dave,

How many $299 flat rate deals do you think you can sell? Pricing is one thing but you still need to convience the pm’s to pay for you site. Just curious?

By: anonymous

anonymous — Tue, 16 Oct 2007 19:35:52 +0000

Why not $299 all you can eat if you are a small shop with low overheads? Granted if you are a large corporation with large overheads then $299 AYCE may not bring in the $ you need…

By: Dave

Dave — Tue, 16 Oct 2007 17:55:17 +0000

InTheIndustry,

Thanks for the advice, I think you might be right that price is a big driving force.

I am working on something big for the blog. Who knows I might have the it started in a few weeks.