During April 2007, a national concierge company called Leverage Life concluded in its survey results that "68% of respondents stated that the concierge service has enabled them to be more productive at work." This statistic highlights the value of effective concierge service. Therefore, pricing must be based on the economic ability of the client and the value associated with the task. To get started, you must understand the environment and expectations of a potential client in your area.
Know what your concierge service is worth to the customer. Special expertise and a personal touch are valued for some duties (i.e., relocation assistance). Also, the ability to complete a task that is not possible or desirable for a client helps determine the fee. Routine tasks, like laundry and daily pet care, are examples. Pricing is done by the task or by the hour. Learn more about this kind of business by referring to the Resources section.
Determine the cost to produce the desired results. Consider how much it costs to care for a client's pet while the owner is away. There could be feeding, walking and medicine to give. Therefore, your hourly rate (i.e., $25 per hour) and the cost of buying any food would have to be calculated to price concierge services. Complete a break-even analysis to see when you reach the point when your variable (i.e., utilities) and fixed (i.e., rent) expenses are covered.
Research the going rate for concierge services in your area. Perhaps concierge service prices in metropolitan areas will be easier to compare. Use the Internet to find out what the competition is charging. There may be many companies offering similar services to clients, so be prepared to explain how your concierge service is different when advertising prices.
Use the break-even calculator referenced to guide your steps for pricing and realizing the point of profitability.
- Use the break-even calculator referenced to guide your steps for pricing and realizing the point of profitability.
Jamie M. Kisner currently works as a South Florida entrepreneur of JMK Notary & Services and a Miami-Dade College instructor. During her spare time, she writes online content for a variety of sites, including eHow, Digital Journal, Bukisa and Homeless Voice. She holds a master's degree in business administration from Florida's Nova Southeastern University.