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Unread 21st Apr 2013, 10:09 AM   #1
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SMS PRICING FOR MULTIPLE LOCATIONS
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I have a pricing model question. Maybe it's been answered somewhere but I've never seen it. Overall, I prefer a fixed monthly fee and I have set different packages, and that works well in most cases.

My issue is what to do when we get a client with multiple locations? Same monthly fees but higher setup fees? How can we make MORE money with these bigger clients besides them buiding a bigger list? I don't want to miss out on some doe here.

Overall they might only need the same keyword(s) and send the same number of offers as if it were a one location place. So I wonder how to find ways to charge them more in a non-consulting model, as the value they get is gigantic, but in a pure SMS based sale, it's a commodity they can shop around so we can't charge too much. Yes, I want the process to be consulting basesd and based on value, but it's not always possible.

Anyway looking for your input.

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Unread 21st Apr 2013, 11:06 AM   #2
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Re: SMS PRICING FOR MULTIPLE LOCATIONS
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I've wondered this myself.

I think the key IMO is rather they will be running one list or one list per location.

So if multiple lists maybe multiple fees but a discount and if they are running one list just do normally or have an "additional location fee"

I think it really comes down to how they want it set up.

Would love to hear back from how people have handled this personally as the above is merely a mental exercise I have done in the past when considering this "objection" before it would come up.
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Unread 21st Apr 2013, 11:29 AM   #3
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Re: SMS PRICING FOR MULTIPLE LOCATIONS
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The "additional location fee" is a good one. Espacially if we provide graphics and promo materials, train staff, etc.

If they do specific coupons for specific stores, yes they would need multiple keywords and all, so it's easy to charge them a lot more than for single site businesses.

But if they do the same offers everywhere, then they will likely create giant lists, but besides that they are as easy to manage and service as one location. A geo targeted coupon could be a great offer that justifies additional services and fees.

There's more money to be made in upsells, but there's must be ways to make a lot more than we would otherwise. One thing is certain: they get a LOT of value!
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Unread 22nd Apr 2013, 06:43 AM   #4
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Re: SMS PRICING FOR MULTIPLE LOCATIONS
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I would think an additional setup fee per location is certainly justified.

I tend to think in terms of the number of subscribers for fees. I have clients that have small SMS lists and and because my monthly costs are so low, I charge less than a client with a more substantial list. I set price points based on the number of subscribers and how many messages will be going out on average. (no more than 2 times per month usually) I then just make sure there is a nice profit after my costs.

With a # of subscribers based pricing, you don't have to worry about how many locations, just total # of subscribers.
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Unread 22nd Apr 2013, 10:18 AM   #5
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Re: SMS PRICING FOR MULTIPLE LOCATIONS
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Well naturally with multiple locations you're looking at more keywords and what normally would be more text messages so their monthly plan overall should be higher than a business with only one location and one customer base.

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Unread 22nd Apr 2013, 01:05 PM   #6
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Re: SMS PRICING FOR MULTIPLE LOCATIONS
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Are you using short-code or long-code numbers?

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