Implementing Bulk Discounts with Service Quantity Discount Ranges to Boost Larger Bookings
Maximizing Business Success with Volume Pricing
In the dynamic world of business, attracting and retaining customers requires strategic and innovative approaches. A common and effective tactic is offering volume pricing, a strategy where discounts are applied for larger bookings or purchases. This strategy, also known as bulk discounting, can encourage customers to utilize more of your services at a single time, increasing the overall value of each transaction.
OctopusPro provides an intuitive setup for a discount range, wherein customers automatically receive a discount when their booking falls within a predetermined service quantity range. This feature not only incentivizes higher usage of your services but also fosters customer loyalty and satisfaction.
This feature is ideal for services charged per unit or by time. However, it is not applicable for services charged a flat amount per job as there’s no unit quantity field involved.
Consider the example of a high-end photography studio. Typically, they charge $500 for an hour-long photoshoot. To encourage customers to book longer sessions, they could set a discount range of 3 to 4 hours with a 15% discount. Therefore, if a client books a 3 or 4-hour session, they will receive a 15% discount on the total cost, making the premium service more accessible and attractive.
Another example could be a gourmet catering service that charges $40 per guest. They might want to incentivize clients to book for larger events, so they could apply a 20% discount for bookings of 50 to 100 guests. This could significantly boost the overall revenue while giving clients a great deal for larger events.
Similarly, a high-end personal training service might charge $80 per one-on-one session but could offer a 10% discount if clients book 10 or more sessions at once. This not only secures a higher overall payment upfront but also ensures client commitment for a longer period.
These examples illustrate how different businesses can take advantage of OctopusPro’s discount range feature to enhance service utilization and increase revenue. By strategically offering discounts, you can add value to your clients and ensure a better return for your business.
Remember, strategically offering discounts not only adds value to your customers but can also ensure a better return for your business in the long run. This guide aims to assist you in understanding and effectively applying the discount range feature for your services.
Table of Contents
- Creating a Service Discount Range
- Examples of Discount Types and Calculation
- Adding a Discount Range During Service Creation or Editing
- Adding Bulk Discounts to Services Based on Custom Field Value Selection
- Applying Volume Pricing Discount to Quotes and Bookings
Let’s understand more about this through some examples where discounts can be implemented for larger jobs:
- Industrial Equipment Installation: An industrial equipment installation company may charge per piece of machinery installed. They could offer a 15% discount if a client books them to install five or more pieces of machinery in a single job.
- HVAC Services: An HVAC service provider charges per unit installed or serviced. They could offer a 10% discount if a client books them to install or service 10 or more units in one location.
- Oil and Gas Pipeline Installation: A company in this industry charges per mile of pipeline installed. They could offer a 5% discount if a client books them for a project involving 50 or more miles of pipeline.
- Solar Panel Installation: A solar panel installation company charges per panel. They could offer a 20% discount if a client books them to install 100 or more panels in one booking.
- High-Rise Window Cleaning Services: A company in this industry charges per window. They could offer a 15% discount if a client books them to clean windows for an entire high-rise building.
- Commercial Painting Services: A commercial painting company charges per square foot. They could offer a discount if a client books them to paint a facility that’s over 10,000 square feet.
- Telecommunications Services: A telecommunications service provider charges per line installed. They could offer a discount if a company books them to install 50 or more lines at once.
- Electrical Contracting: An electrical contractor charges per wiring unit. They could offer a 10% discount if a construction company books them for a large-scale project requiring wiring for 100 or more units.
- Construction and Heavy Machinery Rental: A rental company charges per day for each piece of machinery rented. They could offer a discount if a client books them for a rental period of 30 or more consecutive days.
- Large-scale Landscaping Services: A landscaping company charges per square yard. They could offer a discount if a business books them for landscaping an area of 10,000 square yards or more.
In each case, these businesses incentivize clients to book larger jobs, leading to more revenue and a better utilization of resources.
Creating a Service Discount Range
To apply a discount range, follow these steps:
- Navigate to Settings > Service Settings > Services
- Under the relevant service, click Discounts.
- Select New Discount Range.
- Define the quantity range for which the discount should apply and specify the discount value.
- Click Save Range.
Discount Types and Calculation
There are three types of discounts: per hour, one-off, and percent.
- Per Hour Discount: Using the babysitting company example, you can set a $1 per hour discount for bookings between 10 and 20 hours. So, the hourly rate becomes $9, and a 10-hour booking would cost $90 instead of $100.
- One-Off Discount: Suppose a spa typically charges $80 for a massage service. If a discount of $10 is set as a ‘One Off’, any booking within the specified range will have $10 subtracted from the total cost, regardless of the quantity.
- Percent Discount: For the cleaning company, a 10% discount for 3-5 rooms would mean that for any booking within this range, a 10% discount is applied on the total cost. This encourages customers to book for more rooms.
During an inquiry, estimate, or booking, if a customer selects a duration within the discount range, the system prompts them to either keep the original price or choose the discounted price.
Adding a Discount Range During Service Creation or Editing
A discount range can also be added while creating a new service or editing an existing one:
- Navigate to Settings > Service Settings > Services
- Choose to ‘Create New’ or ‘Edit’ a service.
- Under the ‘Cost & Payrate’ tab, scroll down to ‘Discount range> add new range’.
Adding Bulk Discounts to Services Based on Custom Field Value Selection
While offering bulk discounts on the overall service quantity can effectively boost larger bookings, there are instances where more granular control over discounts is necessary to maximize business outcomes. This is where OctopusPro’s feature to apply discounts based on custom field value selection becomes particularly useful.
In addition to general service discounts, OctopusPro allows you to apply specific discounts associated with the values or options of a custom field tied to a service. This level of customization facilitates nuanced pricing strategies within a single service offering, catering to different customer needs and preferences.
To add a custom field value-based discount, follow these steps:
- Navigate to Settings > Service Settings > Services.
- Locate the service you wish to apply a custom field discount to and click on ‘Manage Custom Field’ beside it.
- From the dropdown menu, select ‘Value Discounts’.
- Click ‘New Service Custom field Value Discount’.
- From the dropdown list, select a value and enter all the discount ranges for that value.
- Click ‘Save’.
The implementation of this feature means that specific discount ranges are applied based on the selected custom field value. For instance, a photography studio may offer additional services such as makeup or wardrobe assistance represented as custom fields. These services could have individual discount ranges, making them more attractive to customers when added to a booking.
When creating a quote or booking involving custom field values falling within a predefined discount range, the system will suggest a discounted price automatically. This encourages customers to opt for more services, driving higher overall revenue per transaction.
Administrative users and fieldworkers can manually override the suggested price and apply a different rate if necessary, ensuring pricing flexibility. However, customers booking through the customer portal do not have the ability to override the suggested discount, maintaining pricing consistency.
By applying custom field value-based discounts, your pricing strategy can be fine-tuned and made more dynamic. Coupled with the service quantity discount range feature, OctopusPro equips you with a robust toolkit to optimize your pricing, enhance customer satisfaction, and maximize your business’s success.
Applying Volume Pricing Discounts to Quotes and Bookings
Service discount ranges that you have defined in your service settings are an integral part of the quote and booking process, helping you to offer competitive prices that incentivize larger bookings while maintaining profitability. The process of applying these discounts is made simple and streamlined for both your administrative users and fieldworkers, while also allowing flexibility when needed.
Automatic Suggested Discounts
When creating a quote or booking, if the quantity of the service falls within one of your predefined discount ranges, the system will automatically suggest a discounted price. This suggested price is calculated by applying the corresponding discount to the original unit price of the service.
For example, if you run a pest control business and have set up a discount range for bookings of 5 or more locations, when you or one of your fieldworkers enters a booking for 5 locations, the system will automatically suggest a price that includes the discount. This feature allows you to consistently apply your pricing strategy without having to manually calculate discounts each time.
Manual Discount Application
Although the system will automatically suggest a discounted price when applicable, your administrative users and fieldworkers are not required to accept it. They have the ability to manually override the suggested price and apply a different rate if they choose to do so. This feature allows you to maintain flexibility in your pricing and make adjustments as needed based on specific circumstances.
For example, a fieldworker might notice that one of the locations in the pest control example above is particularly large and will require extra time and resources to treat. In this case, they could choose to override the suggested discount and apply a different rate to reflect the additional work required.
Customer Portal Bookings
When your customers make a booking through the customer portal, the process is slightly different. The service discount ranges you’ve set up still apply, and a discounted price will be suggested if the quantity falls within a discount range. However, unlike admin users and fieldworkers, customers do not have the ability to manually override the suggested discount and apply a different rate. The suggested discounted price is automatically applied and cannot be edited by the customer. This ensures that the pricing strategy you’ve set up is consistently applied in all customer-initiated bookings.
Through these capabilities, service discounts become an easy-to-manage part of your quoting and booking process. They allow you to incentivize larger bookings, maintain consistent pricing strategies, and make manual adjustments when needed, while offering your customers transparent and competitive pricing.
In summary, leveraging volume pricing or bulk discounting strategies in your business model can significantly boost your profit margins and customer satisfaction. With OctopusPro, implementing such strategies is simplified with the Service Quantity Discount Range feature. By offering automated discounts for bookings within a certain quantity range, you can encourage your customers to utilize more of your services in one go. This not only fosters increased revenue per transaction but also helps build customer loyalty. Ideal for services charged per unit or by time, this feature is a critical tool in optimizing your business performance. Harness this powerful feature today to boost larger bookings and drive your business success.
To stay updated, please subscribe to our YouTube channel.