You are to assume the role of the general manager at Office Cleaning Professionals, a company that provides contract cleaning service to businesses in the community. The owner of the company wants you to introduce new pricing incentives that will result in clients paying all fees upfront rather than monthly.
Office Cleaning Professionals works with a large number of businesses in the community. Employees enter businesses after hours to vacuum, dust, empty trash, clean bathrooms, clean break areas, sweep and mop floors and any other special needs. Office Cleaning Professionals markets itself as the best value in the community, offering competitive pricing on both six-month and one-year contracts.
Clients can choose from two different contract types: a six-month contract or a full-year contract. Currently, Office Cleaning Professionals charges $1,000/month for a six-month contract and $900/month for a one-year contract, giving clients an incentive to choose the one-year contract.
The owner of the company wants to offer clients the ability to pay for the entire contract term upon signing. This process would lessen the amount of monthly invoicing and follow-up for past due accounts.
The owner feels that clients will respond to the new pay in full option if there is a pricing incentive that benefits the client. The owner wants you to introduce a new pricing structure for both the six-month and one-year contracts, to include a pricing incentive for paying the entire contract in full upon signing. You must also determine the best way to communicate the new structure to clients.
