Today we'll be providing a pricing mini-audit for 7shifts, a Restaurant Scheduling tool base in Saskatchewan, Canada. 🇨🇦
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:
A rough measure of how much we're earning per user/client/customer.
A rough measure of how much we're earning from a user/client/customer over the course of their time with us.
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.)
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
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.
- 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)
- 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.