Floor Plans: You are (likely) leaving a ton of money on the floor (Yikes!)9470
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Screen Grab: San Francisco-based Open House Photography - Public Rate Card for 2D Schematic Floor Plans (hand measured and created that look like floor plans offered by Blue-Sketch, Matterport and MP2FP. Think of the above as being Value Based Pricing (in likely contrast to your pricing based on time spent to deliver the solution). Open House Photography charges $100 per floor for 2D schematic floor plans that they order from Matterport and offer as an Add On. Are you getting $300 for 2D schematic floor plans for a three-story house? Read on ...
Floor Plans: You are (likely) leaving a ton of money on the floor (Yikes!)
Are you leaving money on the floor when it comes to offering 2D Schematic Floor Plans?
When we publish the WGAN Pricing Study of Matterport Service Providers in the United States sponsored by CAPTUR3D in December 2019, it's highly likely that among the conclusions will be:
✓ MSPs that are NOT offering floor plans are missing out on easy money
✓ MSPs that ARE offering floor plans are likely not charging as much as they likely could
If you look at just these 10 Matterport Service Providers, you will notice that:
✓ two of 10 are not offering 2D schematic floor plans
✓ of those that do offer 2D schematic floor plans, the price varies from $19 to $300 for the same thing!
How is THAT possible?!!!
Before I give you my analysis, let's look at the existing pricing of the eight Pros that charge for floor plans:
✓ one charges $19 regardless of number of floors
✓ two charges $35 regardless of number of floors
✓ one charges $49 regardless of number of floors
✓ one charges $99 regardless of number of floors
✓ one charges $100 per floor (that's $300 for 3 floors)
✓ one charges $75 for 1 floor and $100 if 2 or 3 floors
✓ one charges $130 for 1 floor; $220 for 2 floors; and 3 floors quoted on request
Keep in mind that the cost of generating the floor plan is likely the same.
Let's assume that each of these Pros buys there 2D schematic floor plans from Matterport for $14.99 (Matterport Classic Pricing, Matterport New Pricing)
That means, one Pro makes $4 ($19 - $14.99) on a 3-story house while another Pro - made $285 ($300 - $14.99).
That's crazy money!!!
I DO understand how this happens.
These Pros likely think, "all I have to do is press the order button, so why should I charge more than [$19, $35, $49]."
Pricing based on time spent. Not based on value delivered.
Now let's look at the Pro that charges $100 per floor – that's $300 for a 3 floor house!
I chatted with Julie at San Francisco-based Open Homes Photography today (29 May 2019) because I was confused about the Open Homes Photography Public Rate Card for floor plans because the rate card shows a 3,500 SQ FT home would cost $450 to have someone come out, do the measurements and create the floor plans. Or, the other option was to do 2D schematic floor plans as a Matterport Add On as $100 per floor (That's $300 for three floors!)
There are clients that pay Open Homes Photography $450 for something that at least one WGAN Member charges $19.
$450! And, that's more than the $300 I used here to make the comparison Apples to Apples of offering floor plans as an Add On to shooting a Matterport 3D Tour.
And, while the $450 (or more) - or $300 - is based on labor of someone coming out and doing the measurements and then going back to the office to construct the floor plans, these amounts show the value of what a client may be worth paying. Not every client, but some clients.
So, this introduces the concept of value based pricing: not pricing based on the amount of time spent to deliver the solution.
Please - STOP thinking about how much time it takes you to order floor plans. Start thinking about the value of floor plans.
To make the conversation super-crazy, imagine that the Pro that offers floor plans for $19 changed the price today (for new clients: I get it that you can't change for old clients) to $300, he would only have to do one order for 16 jobs and get the same amount of money ($300 / $19 = 15.7). Then, taking into account his out-of-pocket cost of 16 jobs is $240 (16 * $14.99 = $240), then it is really something like only needs to sell one job every 29 projects that he is presently doing floor plans.
To say it another way, if every client says yes to floor plans, you are likely not charging enough.
In this example, the Pro that is presently charging $19 for floor plans, could hear "no" 28 times from new Clients and still make the same amount of money for less work.
1. Charge by the floor (even if you pay a flat fee for 2D schematic floor plans) - you WILL make more money! (Or, charge by SQ FT with a minimum amount.)
2. Raise your prices for floor plans (for new clients going forward). Base your prices on value: not your cost
3. Missing 7 out of 10 swings at bat is okay. You'll make more money doing 3 floor plans a month at your new pricing than you will doing 10 per month (at your existing pricing)
4. If you are not offering floor plans; offer them! This Add On could be worth more to you than your Matterport 3D Tour
While the above is based on just 10 Matterport Service Provider public rate cards, I did not want to wait until December 2019 when the WGAN Pricing Study is completed and released with hundreds of data points across the United States.
You are (likely) leaving a ton - a ton - of money on the floor (Yikes!)
So, why not increase your rates today on 2D Schematic Floor Plans on new clients going forward?
Here are three sources for 2D Schematic Floor Plans
1. Blue-Sketch (WGAN Members save 10 percent)
2. MP2FP (WGAN Members save 10 percent)
Offering 2D Schematic Floor Plans is likely the easiest Add On you can do that takes nearly no effort on your part.
WGAN Forum Discussions Tagged
✓ 2D Schematic Floor Plans
✓ Floor Plans
10 Matterport Service Providers: 2D Schematic Floor Plans Pricing Comparison - Source: We Get Around Network
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