Price Audit: How 7shifts Can Capitalize On Their Position As a Thought Leader.

Some quick pricing wins for 7shifts based on a cursory review of their website.

Price Audit: How 7shifts Can Capitalize On Their Position As a Thought Leader.
Source: 7shifts.com

Today we'll be providing a pricing mini-audit for 7shifts, a Restaurant Scheduling tool base in Saskatchewan, Canada. 🇨🇦

Objectives

Our goal (as always) is twofold:

  • Give you a taste of what a comprehensive price audit would look like.
  • Look for opportunities to optimize the following 4 metrics:
ARPU/ARPC
ARPU: Average Revenue Per User
A rough measure of how much we're earning per user/client/customer.
LTV
LTV: Lifetime Value of a Customer
A rough measure of how much we're earning from a user/client/customer over the course of their time with us.
Velcro Score™
Velcro Score™
A qualitative/gut-feel metric we've created in-house that determines how "sticky" a business is based on all of the challenges it solves, often (but not always) relative to a major competitor.

(ex. Netflix has a low velcro score because it only offers one service, Amazon has a high-velcro score relative to Netflix because it offers millions of products and services in addition to Prime Video.)
Untapped Revenue™
Untapped Revenue™
A quantitative measure of how much revenue is left on the table due to unrealized opportunities or a sub-optimal pricing/product mix. 

7shifts Price Mini-Audit: Watch Now

Watch a recording of the audit or read a summary below.
🕙
Short on time? You can read a brief summary of the audit below.

Summary Of The Pricing Mini-Audit.

A comparison of what I liked, and what I'd recommend changing.

What I Liked

  • ✅ This audit is tough because they're doing a GREAT job with fundamentals; a lot of the low-hanging fruit has already been addressed. #ChallengeAccepted 🔥
  • ✅ Extremely focused on solving their customer's problem.
  • ✅ Positioned as a thought leader.
  • ✅ Multidimensional and solve many problems re: restaurant staffing.
  • ✅ Tons of resources. (ex. Podcast, academy, etc.)
  • ✅ Variety of customer personas. (ex. chefs, owners, execs.)
  • ✅ Selling add-ons; significant boost to ARPU.
  • ✅ Free trial doesn't require a credit card.

Opportunities For Improvement

  • ❌ Free plan represents a big missed opportunity.
  • ❌ Free plan cheapens the product and undermines the mission.
  • ❌ Free plan rewards/creates price-resistant buying behavior.
  • ❌ Not charging for academy courses = major revenue missed.

Quick Wins/Recommendations

Opportunity #1

💡
Launch Paid Self-Serve Courses/eLearning materials.
  • Use a service like Podia to host self-serve courses, learning materials, and possibly some white-glove/hands-on consulting.
  • Products can range from $9 to $90,000.
  • A course purchased at $1950 can ~3-5x MRR for customers with fewer locations.
  • Self-serve products will scale extremely well.
  • Consulting should be reserved for the highest end clients to remain profitable.
  • Group/cohort-based learning is preferred for classes with a live-teaching component in order to keep overhead down and maximize profitability.

Example product/pricing mix:

  • $9.99 eBooks
  • $99 templates/worksheets/reference guides etc.
  • $1950 restaurant management course
  • $5000 7-shift hospitality/management certification course (self-serve)
  • $15,000 certification + consulting/coaching
  • $90,000 white-glove consulting services for large franchises (ex. 20+ locations)

Opportunity #2

💡
Tweak The Free Plan: Convert It Into A Paid Plan
  • Currently restaurants with a single location have their plan comped.
  • Consider putting a time limit on this plan.
  • (ex. Free for the first 3/6/12 months!)
  • After that date you can begin charing $19.99
  • If even 5% of your 700,000 stores convert this is almost $8M in revenue.

Do you ever worry that you're undercharging or leaving revenue on the table?

If you want a step-by-step formula you can follow to raise your prices without hurting demand then you'll want to grab your free copy of my newest book: Triple Your Prices: How To Raise Your Prices Without Hurting Demand.

Free Guide | Triple your prices. Right now.
This free strategy guide by James Maxwell will teach you how to triple your prices in less than 15 minutes.

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