In Nigeria and other
countries, facility management companies want people and businesses to
outsource management of the critical and soft facilities to them for maximum
operational efficiency and cost reduction. In the last 10 years, this has been
the agenda of facility management solutions providers, saying users of various
facilities need to focus on the core operational activities and save time and
effort on support activities.
As businesses and people look forward to
2019 and beyond, Infoprations
believes that operational cost reduction will continue to be FM companies’
narrative as the main strategy of getting more clients and having sustainable
revenue. Telling cost reduction story means that FM companies’ success rate is
premised on how to get more for less using cost-cutting.
Like other industries, players in FM
industry have premium, penetration, economy and skimming pricing strategies to
choose from. Premium pricing is useful when strong competitive advantage exists.
Penetration pricing becomes handy when there is a need to gain market share
quickly by setting price low. Targeting mass market and high market share
requires economy pricing. Adopting skimming pricing means that companies will
charge high price for a solution till a certain period that competitors give
room for low price choice.
In their quest of providing value added
solutions, FM companies inspect facilities before offering specific solutions. FM
companies view this as part of value added solutions. However, clients may not see it as value
addition element. When this occurs, what is the appropriate pricing strategy?
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