June 26, 2012
FORYOUTHDEVELOPMENT
FORHEALTHY LIVING
FORSOCIAL RESPONSIBILITY
CHANGE IS Y PILOT:
PRICING & ADMIN DECISIONS
...
PILOT ISSUE TYPES
• TECHNICAL GAPS
• PROCESS ISSUES
• ADMINISTRATIVE CONSIDERATIONS
• PRICING DECISIONS
3 | PRICING DECISIONS | ©2011 YMCA of Metro Chicago
PRICING DECISIONS
• DAILY RATE FOR TRADITIONAL DAY CAMPS
1. APPLIES TO...
4 | DAY CAMP PRICING MODEL DECISION MATRIX | ©2011 YMCA of Metro Chicago
DAY CAMPPRICING MODELS
Model
Pricing
Model
Averag...
5 | UNSUBSIDIZED CHIDLCARE PRICING DECISION MATRIX | ©2011 YMCA of Metro Chicago
UNSUBSIDIZEDCHILDCARE PRICING MODELS
Mode...
6 | DAY CAMP DEPOSIT vs. REGISTRATION DECISION MATRIX | ©2011 YMCA of Metro Chicago
DAY CAMPDEPOSIT vs. REGISTRATION FEE
M...
7
PRICING DECISIONS NEEDED
1. STANDARD DAILY RATES
– SUMMER CAMP
– UNSUBSIDIZED CHILD CARE
2. CAMP DEPOSITS VS REGISTRATIO...
QUESTIONS?
PRICING DECISIONS
8 | QUESTIONS | ©2011 YMCA of Metro Chicago
9
PRICING DECISIONS
PRICING DECISIONS DIRECTLY IMPACT…
•NUMBER OF PRODUCTS TO SET UP
•NUMBER OF REGISTRATIONS TO SELL
•NUM...
10 | PRESENTATION TITLE HERE | ©2011 YMCA of Metro Chicago
SUMMER+ SPECIALTY VS. WEEKLY + SPECIALTY
Product Pricing Model ...
11 | CHILDCARE DAILY RATE POCKET SLIDE | ©2011 YMCA of Metro Chicago
UNSUBSIDIZEDCHILDCARE DAILY RATE
Product Pricing Mode...
12 | STANDARD DAILY RATE POCKET SLIDE | ©2011 YMCA of Metro Chicago
STANDARDDAILY RATE DECISION
NOPOLICY CHANGE
JUSTCREATE...
13 | PRICING MODELS | ©2011 YMCA of Metro Chicago
PRICING MODELS
Pricing models affect product volume and pricing:
• Camps...
14 | IMPLICATIONS OF CURRENT PRICING MODELS | ©2011 YMCA of Metro Chicago
MAJORIMPLICATIONS WITHCURRENT PRICING
STRUCTURE ...
15 | RECOMMENDATIONS | ©2011 YMCA of Metro Chicago
RECOMMENDATIONS
Quick hits to improve customer service, provide flexibi...
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Pricing Models Decision Making

This was a presentation to illustrate a very complex concept, which was the pricing structure used in our current system vs. a new one we were evaluating. It was meant for CIO/CFO level executives, specifically to illustrate the level of complexity and maintenance we faced based on decisions that needed to be made. Numbers replaced for confidentiality.
Published on: Mar 4, 2016
Published in: Technology      
Source: www.slideshare.net


Transcripts - Pricing Models Decision Making

  • 1. June 26, 2012 FORYOUTHDEVELOPMENT FORHEALTHY LIVING FORSOCIAL RESPONSIBILITY CHANGE IS Y PILOT: PRICING & ADMIN DECISIONS PRICING MODELS & IMPLICATIONS FOR THE IMPLEMENTATION OF ABC SOFTWARE YMCA OF METRO CHICAGO
  • 2. PILOT ISSUE TYPES • TECHNICAL GAPS • PROCESS ISSUES • ADMINISTRATIVE CONSIDERATIONS • PRICING DECISIONS
  • 3. 3 | PRICING DECISIONS | ©2011 YMCA of Metro Chicago PRICING DECISIONS • DAILY RATE FOR TRADITIONAL DAY CAMPS 1. APPLIES TO SUMMER LONG CAMPS 2. PRICE CAN STILL VARY BY CENTER 3. EXCLUDES SPECIALTY CAMPS • DAILY RATE FOR CHILD CARE 1. BEFORE/AFTER 2. PRESCHOOL, ETC. 3. EXCLUDES CHILDREN SERVICES • DAY CAMP DEPOSIT vs REGISTRATION FEES 1. DOWNPAYMENT OR ADDITIONAL FEE?
  • 4. 4 | DAY CAMP PRICING MODEL DECISION MATRIX | ©2011 YMCA of Metro Chicago DAY CAMPPRICING MODELS Model Pricing Model Average Product Volume (Metro) Average Pricing Structures (Metro) Improvement % CURRENT Weekly + Specialty 1,500 9,000 CHANGE TO STANDARD DAILY SUMMER RATE Summer + Specialty 1,500 1,500 PRODUCTS: +0% PRICING: +83% “NO CHANGE” IN ABC Weekly + Specialty 3,000 9,000 PRODUCTS: -100% PRICING: -0%
  • 5. 5 | UNSUBSIDIZED CHIDLCARE PRICING DECISION MATRIX | ©2011 YMCA of Metro Chicago UNSUBSIDIZEDCHILDCARE PRICING MODELS Model Pricing Model Average Product Volume (Metro) Average Pricing Structures (Metro) Improvement % CURRENT 2-3-4-5, x M AND NM x AM/PM 288 4,608 CHANGE TO STANDARD CHILDCARE DAILY RATE M: $00 NM: $00 Consolidate AM/PM 576 1,152 PRODUCTS: -100% PRICING: +75% “NO CHANGE” IN ABC Take current x 2 (AM/PM) x 2 (fee) 1152 4,608 PRODUCTS: -400% PRICING: 0%
  • 6. 6 | DAY CAMP DEPOSIT vs. REGISTRATION DECISION MATRIX | ©2011 YMCA of Metro Chicago DAY CAMPDEPOSIT vs. REGISTRATION FEE Model Cost of camp (sample) Registratio n fee Deposit Out of pocket paid @ reg Balance Total # of Manual Adj. ABC $600/mo $25 (?) One time - $25 (?) $600 $625 0 Current $600/mo - $25/wk $100 $500 $600 36,000 Y = METRO C = CUSTOMER
  • 7. 7 PRICING DECISIONS NEEDED 1. STANDARD DAILY RATES – SUMMER CAMP – UNSUBSIDIZED CHILD CARE 2. CAMP DEPOSITS VS REGISTRATION FEES * * DECISION DEADLINE: JULY 27TH **IMPACTS SCOPE & BUDGET
  • 8. QUESTIONS? PRICING DECISIONS 8 | QUESTIONS | ©2011 YMCA of Metro Chicago
  • 9. 9 PRICING DECISIONS PRICING DECISIONS DIRECTLY IMPACT… •NUMBER OF PRODUCTS TO SET UP •NUMBER OF REGISTRATIONS TO SELL •NUMBER DEPOSITS TO MANUALLY TRANSFER (36,000) •NUMBER OF ADJUSTMENTS FOR CUSTOMER SERVICE •ROOM FOR ERROR
  • 10. 10 | PRESENTATION TITLE HERE | ©2011 YMCA of Metro Chicago SUMMER+ SPECIALTY VS. WEEKLY + SPECIALTY Product Pricing Model Rate Price Structure # of prices Summer Camp - Elmhurst 1 x Summer = 1 Daily: $00 BR=1; Y=25 75+150/1 112 avg Lattof=6 | 000 Elm=3 | Y=000 3pk - $00 4pk - $00 5pk - $00 75+150/3 336 avg Specialty Camps - Elmhurst 15 (weekly) Daily: $00 BR=?; Y=? 375+900/ 1 640 avg Lattof=36 | 000 Elm=15 | Y=000 3pk - $00 4pk - $00 5pk - $00 375+900/ 3 1920 avg Weekly Session –Elmhurst (10 weeks) 10 (weeks) Daily: $00 BR=?; Y=? 250+1500 /1 875 avg Lattof=60 | 000 Elm=10 | Y=0000 3pk - $00 4pk - $00 5pk - $00 375+900/ 1 2625 avg Summer+Specialty=75+375=450 Productsx2 (fee)=900 products Weekly+Specialty=250+375=625 Productsx2 (fee)=1250 products Small center average Summer+Specialty=150+900=1050 Productsx2 (fee)=2100 products Weekly+Specialty=1500+900=2400 Productsx2 (fee)=4800 products Across YMCA association average
  • 11. 11 | CHILDCARE DAILY RATE POCKET SLIDE | ©2011 YMCA of Metro Chicago UNSUBSIDIZEDCHILDCARE DAILY RATE Product Pricing Model Rate Price Structure # of prices Current Weekly variable rate x M/NM x AM/PM 2: $00 3: $00 4: $00 5: $00 288 x16 4,608 avg Lattof=8 | 000 Elm=15 | Y=000 AVG Y=000 Daily Rate Standard Daily Rate x M/NM x AM/PM M: $00 NM: $00 288 x 4 1,152 avg Lattof=8 | 000 Elm=15 | Y=000 AVG Y=000
  • 12. 12 | STANDARD DAILY RATE POCKET SLIDE | ©2011 YMCA of Metro Chicago STANDARDDAILY RATE DECISION NOPOLICY CHANGE JUSTCREATES MORE FLEXIBILITY!
  • 13. 13 | PRICING MODELS | ©2011 YMCA of Metro Chicago PRICING MODELS Pricing models affect product volume and pricing: • Camps: weekly session vs. summer session model (see slide 3) • Before/After Childcare (non-subsidized): 3-4-5 days (high volume of products to create/set up) vs. standardized daily rate ( lower volume of products to create/set up) • Day Camp deposits: ABC module does not automatically apply deposit to balance, would have to do this manually. FY11 included 36K registrations for Day Camp, meaning this could result in 36K+ manual adjustments in ABC made by Front Desk staff.
  • 14. 14 | IMPLICATIONS OF CURRENT PRICING MODELS | ©2011 YMCA of Metro Chicago MAJORIMPLICATIONS WITHCURRENT PRICING STRUCTURE & ABC SYSTEM Negative impacts: • Cost & Time – thousands of complex product set ups create high potential for error – could require a lot of back-end work to correct/maintain – difficult to ensure standardization of product setup if managed by individual centers – requires rigorous auditing process to ensure accuracy • Volume & Complexity: – Potential to end up with over 4800 camp products alone within year one – High potential for errors : ABC does not allow deletion of products. – Current complex rate structure means managing over 9K rates
  • 15. 15 | RECOMMENDATIONS | ©2011 YMCA of Metro Chicago RECOMMENDATIONS Quick hits to improve customer service, provide flexibility and avoid manual adjustments. • Move to standardized rate for Day Camp and Before/After School Childcare (non-subsidized) • Daycamp deposit vs registration fee: drop deposit, use registration to collect “deposit” fee. • Same applies to Before/After School: set up one product with a year long calendar; will reduce products.

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