Thread: One month Free?
View Single Post
  #5 (permalink)  
Old 07-12-2008, 12:35 PM
howardlbelz howardlbelz is offline
Junior Member
 
Join Date: Jun 2008
Posts: 7
Default The true cost of 1 month free

Dennis,

The reason I quit 1 month free was I was taught the true cost in profit reduction for the company.

If your prices are right and your occupancy is 90% you are getting about 10% of gross income for profit. If your average length of stay is 10 months you are giving 100% profit each time you do it. If your average length of stay is 15 months you are giving 50% profit ect.

Try this: Add the monthly cost of one free month up, move that to advertising budjet and imagine the impact on calls per day to close from.

The second reason I quit was, I try and track where my customers go from here and I saw the type of customers who were going to the one free month option. Some move around just for the free storage.

If a customer is not closing because of price I will explain the true cost to him if I used this system: Basicily I could not give the services or quality of service he is currently experiencing from me.
Reply With Quote