Expanding into a new service area requires additional investment and always poses unexpected risks. We love working with businesses who are open to change and ready to move when the market is going in a certain direction.
Recently, we helped a local service company increase the service area and still make it financially viable. We reviewed the top franchise and local competitors to make sure we did not have any major disadvantages in terms of value proposition and online presence.
So how do you offer the same services to farther away clients without losing your profit margin?
Introducing premium zip code pricing
We found out that we could serve additional customers outside the original service area if those customers were willing to pay more for the service. Our initial study showed clients in these outside areas were underserved and would be open to paying a higher price point for services. Unfortunately, the signup process did not have an option to offer different pricing based on a customer zip code.
We implemented a zip code check before showcasing pricing options. In knowing the area a prospect was coming from, the potential customer would be offered appropriate pricing. And we no longer had to turn away customers who were outside the original service area or lose money on servicing them