My in-home training business has taken a growth spurt, for which I’m very thankful. But another thread got me thinking about my pricing, because the driving that I’m doing can be significant.
Does anyone do their pricing based on a geographic radius? And if so, how many pricing tiers do you have?
The bulk of my clients are within 2 miles of my house, and I can get from one house to the next in about 10 minutes. I can charge them a reasonably low rate because I have minimal travel time. Now I have a small group of clients (coworkers) who want me to train them at their work, 10 miles away from my house, with an unpredictable freeway commute. I have to charge them more or it won’t be worth my time. Just wondering how others handle it, and how many tiers you have.
Two things come to mind.
First one is to add the extra cost into your price. Most people will understand reasonable prices.
Second, is if you schedule enough people in that area you can make the distance more worthwhile.
Figure out what the longest time would be to drive, the least, take an average and then determine what that time is worth to you, remember, it’s x’s two, trip there and return trip.
Okay, one more idea, if there is a location to meet half way.
Since, this out of your area is new, you have the perfect opportunity to start the following, it worked for me, unless I caved, which I really attempted to avoid. Driving back and forth was a major pain, for me, and traffic ugh, plus we have to keep in mind being good stewards of our environment, drive less.
Say you begin to have 3 areas in which people “want you ;)” Area A, B, and C. Train area A Monday/Wed mornings and area B Monday/Wed afternoons. Area B Tue/Thur…you get the point.
Keep up the good work!!
Nancy, traffic is unpredictably heavy any time of day in my area, so time and distance are significant. I’m in the process of restructuring to a set monthly rate; but it will likely include a mileage component. Thus far my clients have been understanding. There is one fee for working one-on-one within a five-mile radius of my home office, which includes the majority of my client base. For each additional mile radius, I add $5. The website, www.freemaptools.com is what I use to determine the driving radius for each client. Current,committed clients will have little or no change in their rates than the newer or less-frequent clients.
I charge my session rate for all travel over 15 minutes. The bulk of my clients that have in-home sessions are within (or close to within) that travel radius. But I have had a few requests from clients further out of town. I can’t schedule anyone else for the time I am travelling. One client is an hour drive one way. The time, gas, wear/tear on the car, the huge convenience it is for the client, etc. all add up to why I charge for the travel time.