What do you charge a client with 20+ locations?

16 replies
I have a meeting with a client tomorrow for text messaging campaigns. The client has 20+ locations. I'm torn what to charge per location. Should I make it a group deal or per location?

I don't want to overcharge per location when there is multiple places. I also don't want to undercharge and shoot myself in the foot either. Any advice?
#charge #client #locations
  • Profile picture of the author sdentrepreneur
    If you are setting up separate campaign for each address, I would charge accordingly. Maybe give them some type of small discount? One of my clients has 18 locations, I don't do text marketing but each one of them has Facebook, Twitter, Foursquare and Google Places campaigns.
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  • Profile picture of the author Your Brand Ebooks
    Originally Posted by thesoniclounge View Post

    The client has 20+ locations. I'm torn what to charge per location. Should I make it a group deal or per location?
    What type of business is it?
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    ONCE UPON A TIME there was a Warrior named Bob. He was sad. And frustrated. You see, Warrior Bob spent every last nickel on Internet Marketing e-books. But nothing panned out. No traffic. No sales. He was one sad Bob. Then one day Bob found a bottle. He rubbed it and out came a Genie who granted him 3 wishes. For Wish #1 Bob asked for a pet Dragon. Wish Granted. For Wish #2, Bob wanted Warriors' websites seen by 53 million TV viewers, for under $5 per broadcast. The Genie said... (click here)
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    • Profile picture of the author thesoniclounge
      Originally Posted by Your Brand Ebooks View Post

      What type of business is it?
      Pizza Restaurant.
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      • Profile picture of the author Your Brand Ebooks
        Originally Posted by thesoniclounge View Post

        Pizza Restaurant.
        hmm.. just throwing out an idea here....

        Because it costs so little to make a pizza,
        pizza promotions are often based on giving away
        additional pizzas, rather than lowering the price.

        Anyways, pizza has nice profit margin.
        So maybe you could structure a performance based pricing model.
        You get paid more when your campaign results in more pizza sales.

        Making a % would be a good strategy if you knew for sure
        that your campaign is gonna rock their sales. Basically you're
        positioning yourself to get a piece of the pie. (no pun intended)
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        ONCE UPON A TIME there was a Warrior named Bob. He was sad. And frustrated. You see, Warrior Bob spent every last nickel on Internet Marketing e-books. But nothing panned out. No traffic. No sales. He was one sad Bob. Then one day Bob found a bottle. He rubbed it and out came a Genie who granted him 3 wishes. For Wish #1 Bob asked for a pet Dragon. Wish Granted. For Wish #2, Bob wanted Warriors' websites seen by 53 million TV viewers, for under $5 per broadcast. The Genie said... (click here)
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  • Profile picture of the author JoshDay
    That isnt a bad idea Your Brand Ebooks. But I feel, there is no need for you to put your self out there like that and be subjected to variable compensation. I'd set up sort of pyramidal pricing structure, where the price starts to break down as it spreads. With multiple locations, you are pretty much regenerating the same campaign over again.

    So yes, if you land all 20, I would give them a slight discount, a percentage you can live with.
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  • Profile picture of the author phaproduction
    I would be content with giving a larger discount than a "small %". My reasoning being that your marginal costs to set up another FB page, Google Places page etc. will be very low. I would assume you would copy/paste most of the information, apart from the address. So I would be ready to offer a couple locations "free of charge" when the owner would sign all of them up for you.

    Why? Because if you make this one client happy, there will be 20x more business there for you in the future.

    Good luck!
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  • Profile picture of the author bluechillisa
    I would charge a complete price with a % discount on the overall rate. Don't charge per location, the owner or manager might get freaked out by the pricing.
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    • Profile picture of the author thesoniclounge
      I went with a one location price monthly plus setup. They agreed to try it for one location for 30 days to see the impact and with the promotion we are doing it will grow at a explosive rate. They will see the results within 2 weeks. They agreed in writing if they see a positive effect they will sign up all locations.

      The client ended up being bigger than originally though he has 39 locations total and also referred 2 Business owners who own franchise chains across the country in other food industries.

      The launch of the campaign will start on friday and the building of the campaign starts tomorrow.

      Thanks for everyones advice I really appreciate hearing others input on something I have no former experience with. It allowed me to go into the client meeting with a open mind and different ideas and mold it to the clients needs.
      Tim
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      • Profile picture of the author fernandoescobar
        Keep us informed as to how it all turns out.

        Best of luck to you, it sounds like you have a great opportunity there to grow your business.
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  • Profile picture of the author Seantrepreneur
    Wow good luck with that, Tim. It sounds like a great opportunity. Please keep us updated with how things are going.

    I'm glad you brought up the franchise bit, because a lot of ppl don't understand that most franchisees have control over their marketing as long as the franchise ok's it. Which for the most part they will. Think about it, the more the franchisee makes the more the franchise itself makes so why would they stop their marketing efforts?

    Anyways, thanks again for keeping us updated so far!

    Sean
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  • Profile picture of the author iAmNameLess
    YUM PIZZA!! Pizza money is great.

    The key to getting this to work, is offering value. 20 locations.... what do you normally charge? $500 a month? 500 times 20 is 10,000/mo. Order about 1,000 table tents... get him a short code, do some sms marketing and manage that campaign. Make sure each is on google places, set up a chain fan page for him, twitter page, etc.

    He could be paying you 10 grand a month.... but what you're going to be making him, should be more than that.

    Encourage him to do a "free breadsticks" give away when they opt in to the sms list.
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  • Profile picture of the author Dexx
    Don't charge by location--charge by overall value you are providing (i.e. the increased sales as a whole)

    Cheers,

    ~Dexx
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  • Profile picture of the author KenB
    Well it depends on what your doing and how much revenue your client is earning from your services. At least that's how price my clients.

    Best of luck,
    Ken
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  • Profile picture of the author tdorland
    This is all great info. I can't wait to schedule big time meetings like that. How did you go about scheduling the appt?
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    • Profile picture of the author thesoniclounge
      Originally Posted by tdorland View Post

      This is all great info. I can't wait to schedule big time meetings like that. How did you go about scheduling the appt?
      It was referral from another business owner. He asked the pizza owner if I could speak to him about new marketing strategies and if it was ok for me to call him. The guy said I don't want to talk on the phone about it I want to meet with him in person. Which got the hard work out of the way for me to get in.

      This is how I get clients to work with me...
      I sat down with the client and asked him what he was currently doing now to market his business. He told me all the things he was doing. I then asked him what he liked and didn't like about those things.
      He also mentioned that he liked to play poker. Since I like and play poker I got him to talk about poker a little bit and built a instant rapport with the client. I got him talking about something he was passionate about so he was in the positive mindset.


      I then explained to him my passion is "helping and teaching local businesses to succeed" and not about making money. The people get that when I tell them that and how I got to that point- going through my sons disease. I then explained to him what I do and what the results could be for him and asked him "What would these kind of results mean to your business" He gave his answer.. I then asked "What is the value you place on this for your business" he told me. I ask "What would happen to your business if you didn't do this" - This question here is a closer and the reason why is it gets them to thinking about and convinces in there own mind they need you.

      Now we talk for awhile longer he ask some questions , I answer them.
      I now in his words repeat back what he told me in those 3 questions.

      I quote the price for one location plus setup and tell him for more locations the discount he gets. I also remind him that we do all the work for you.

      He said where do I sign, who do I make the check out too and when do we get started.. It really was that easy!!!

      I've found people really could care less about the technical aspect of this business. They really want to know what it's going to cost/roi and how many customers can it bring in....

      I did the original one location higher so I can discount bigger for multiple locations.. When you really show value as dexx said the cost doesn't become an issue. 250 setup and 750 a month.
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  • Profile picture of the author LiquidSeo
    Originally Posted by thesoniclounge View Post

    I have a meeting with a client tomorrow for text messaging campaigns. The client has 20+ locations. I'm torn what to charge per location. Should I make it a group deal or per location?

    I don't want to overcharge per location when there is multiple places. I also don't want to undercharge and shoot myself in the foot either. Any advice?

    Hey Tim,

    I have a 40 location franchise that I did a discounted rate of $300 per location per month. This one was a web inquiry from Australia, and is in the laser hair removal industry.

    I'd agree with Dex on pricing, as I don't believe that any one price truly fits all.

    Thanks,

    Brian
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