Hotrod & Restoration Magazine recently published an interesting article by Ace Eckleberry of ACE Custom Upholstery & Rod Shop in which he discusses the benefits of offering customers service packages priced according to tier. The piece makes for an interesting read – especially for shops looking to simplify the process through which they give estimates.
Ace explains that his auto upholstery shop offers four service packages, ranging in price from $3,500 to $25,000:
The bottom line when it comes to estimating your jobs is to always place the final decision in the customer’s hands. Let them decide exactly how extravagant the final product will be. Upholstery has so many variables, so there’s no one-size-fits-all pricing. Cheap vinyls can range as low $20 a linear yard while high-end leathers are sold at premium prices by the square inch. That difference in itself can vary more than the complete price of a lower end job. Give your customer the option to choose the type of service and materials that suit their concept of value and final product. [more]
While not every shop’s prices will match Ace’s, the concept remains the same. Divide your services into packages and price them accordingly – sort of like a McDonald’s Extra Value Meal. Doing so will make ‘ordering’ from you easier, plus customers will know exactly what they’re getting. It might even make bookkeeping easier on your end too.
What do you think? Does your auto upholstery shop utilized service packages and tiered pricing? Why or why not?
This is an excellent idea! A customer comes in for a quote and we’ll discuss labour costs and then its the old “the total price will depend on what kind of materials you want to go with.” Some customers aren’t shy about going with the cheaper stuff, but I know some don’t want to come out and say it. I do seats more then anything right now, so I will definitley be adapting this idea and making up a few different price sheets for seat material options. Have one for seats done in vinyl, cloth, combo of both and then one for leather, and then a totally custom job. Include a picture or two of jobs done in each material. That way the customer can get a sense of cost difference between materials and the frugally shy ones don’t have to come out and ask what their cheapest option is. Thanks for yet another great article guys!
Thanks for your support Ferbs. Please let me know how you work the packages out!
Another way it could be integrated is make mini seats of the different optional packages. So that way customers not only hear the options but they can see and feel the differences.
That’s an excellent idea smiley. Looking at a picture is one thing, but actually touching a sample is a whole different experience. Plus it could help you up sell a package 😉
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