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MarketingPricing

First Time Client Offer: $99 3D Tour5867

WGAN
Founder
DanSmigrod private msg quote post Address this user


Screen Grab (above) from a Matterport Service Provider website

Hi All,

I noticed this special offer on a Matterport Service Provider website today (29 November 2017).

What is your First Time Client Offer?

Happy holidays,

Dan
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ron0987 private msg quote post Address this user
Well it's not $99. So my question would be did we have to agree with this as a listed Matterport provider beforehand or we have the agent tell us after we talked with them? I wish they would tell the provider when they do this.
Post 2 IP   flag post
WGAN
Founder
DanSmigrod private msg quote post Address this user
@ron0987

For clarification, the offer has nothing to do with the MSP Program. This is simply a Matterport Pro making his/her offer.

Does that help?

Dan
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OpenHouseOptics private msg quote post Address this user
It’s a good loss leader.
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Liam_Tayler private msg quote post Address this user
Ouch,.. although, I would hope that there would be significant add-ons, hosting, extra charges for video, floorplans etc...
Post 5 IP   flag post
ron0987 private msg quote post Address this user
Ok Dan thanks I read over it and thought it was directly from Matterport, πŸ‘πŸ‘πŸ‘
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3dVuz private msg quote post Address this user
Tripod OPTIONAl. For $99 I HOLD the camera over my head. For $300-$600 I’ll use a tripod.
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OpenHouseOptics private msg quote post Address this user
@3dvuz you might have alignment issues
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VTLV private msg quote post Address this user
Dropping my price to $150 isn't going to be enough now? Crap, I'm soo behind the curve on pricing!
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JohnLoser private msg quote post Address this user
I have seen a provider's offer for "$99 for a scan". It's a race to the bottom. Once a "$99" price is set, a customer will expect it again and again or something close. He is following the Cable TV/Satellite TV pricing scheme. (If he is following the cell phone marketing scheme -- he is hitting them with a TON of hidden extra fees.)

Let's look at the costs:
Travel Expense (presume 20 miles round trip): $9.00 (using a rate of $0.45 per mile)
Model Processing fee: $19.00 (presuming he has used up his "free processing for the month)
Model hosting fee ($1.50) (presuming an amortized fee of $0.50 per model per month for full utilization)
Matterport camera amortization: $7.70 (presuming $3,900 cost, amortization over 3 years, 50 weeks, 1 scan per day)
Out of $99.00, costs have taken $37.20, leaving $61.80 gross profit. (Presuming 2.5 hours on site, 1 hour post-processing to make an entry point, find stills for the highlight reel, send the link to the client by email. This is an apparent labor rate of $17.66 per hour)
But it gets better:
In the USA:
There is a 15.3% Social Security Tax on the income ($9.46)
He will probably pay 15% or more income tax ($9.27)
Depending on where he lives, there may be local occupation or income taxes. But we won't consider them.

(I have not included any pre-sales time or amortization of office costs.)

So, out of $99.00, this service provider will have less than $43.07 for the work in his pocket.

Far better for all of us in the market to price our services and products fairly and at a rate that will pay our bills, make a decent profit and allow us to stay in business for some lengthy period of time.
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53898 10 10
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