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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.
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June 26, 2012
FOR YOUTH DEVELOPMENTFOR HEALTHY LIVINGFOR SOCIAL RESPONSIBILITY
CHANGE IS Y PILOT:PRICING & ADMIN DECISIONS
PRICING MODELS & IMPLICATIONS FOR THE IMPLEMENTATION OF ABC SOFTWAREYMCA OF METRO CHICAGO
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 CAMPS1.APPLIES TO SUMMER LONG CAMPS
2.PRICE CAN STILL VARY BY CENTER
3.EXCLUDES SPECIALTY CAMPS
• DAILY RATE FOR CHILD CARE1.BEFORE/AFTER
2.PRESCHOOL, ETC.
3.EXCLUDES CHILDREN SERVICES
• DAY CAMP DEPOSIT vs REGISTRATION FEES1.DOWNPAYMENT OR ADDITIONAL FEE?
4 | DAY CAMP PRICING MODEL DECISION MATRIX | ©2011 YMCA of Metro Chicago
DAY CAMP PRICING MODELS
ModelPricingModel
AverageProduct Volume (Metro)
AveragePricing
Structures
(Metro)
Improvement %
CURRENTWeekly + Specialty
1,500 9,000
CHANGE TO STANDARD
DAILY SUMMER
RATE
Summer +
Specialty1,500 1,500
PRODUCTS: +0% PRICING: +83%
“NO CHANGE”
IN ABC
Weekly + Specialty
3,000 9,000PRODUCTS: -100%PRICING: -0%
5 | UNSUBSIDIZED CHIDLCARE PRICING DECISION MATRIX | ©2011 YMCA of Metro Chicago
UNSUBSIDIZED CHILDCARE PRICING MODELS
ModelPricingModel
Average
Product Volume (Metro)
AveragePricing
Structures (Metro)
Improvement %
CURRENT2-3-4-5,
x M AND NMx AM/PM
288 4,608
CHANGE TO STANDARD CHILD CARE DAILY RATE
M: $00NM: $00
Consolidate AM/PM
576 1,152PRODUCTS: -100% PRICING: +75%
“NO CHANGE” IN ABC
Take current x 2 (AM/PM) x 2 (fee)
1152 4,608PRODUCTS: -400% PRICING: 0%
6 | DAY CAMP DEPOSIT vs. REGISTRATION DECISION MATRIX | ©2011 YMCA of Metro Chicago
DAY CAMP DEPOSIT vs. REGISTRATION FEE
Model
Cost of camp
(sample)
Registration 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 = METROC = CUSTOMER
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
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
•NUMBER DEPOSITS TO MANUALLY TRANSFER (36,000)
•NUMBER OF ADJUSTMENTS FOR CUSTOMER SERVICE
•ROOM FOR ERROR
10 | PRESENTATION TITLE HERE | ©2011 YMCA of Metro Chicago
SUMMER + SPECIALTY VS. WEEKLY + SPECIALTY
Product Pricing Model RatePrice
Structure
# of prices
Summer Camp - Elmhurst 1 x Summer = 1
Daily: $00
BR=1; Y=25
75+150/1
112 avg
Lattof=6 | 000Elm=3 | Y=000
3pk - $004pk - $005pk - $00
75+150/3
336 avg
Specialty Camps - Elmhurst 15 (weekly)
Daily: $00
BR=?; Y=?
375+900/1
640 avg
Lattof=36 | 000Elm=15 | Y=000
3pk - $004pk - $005pk - $00
375+900/3
1920 avg
Weekly Session –Elmhurst (10 weeks)
10 (weeks)
Daily: $00
BR=?; Y=?
250+1500/1
875 avg
Lattof=60 | 000Elm=10 | Y=0000
3pk - $004pk - $005pk - $00
375+900/1
2625 avg
Summer+Specialty=75+375=450 Productsx2 (fee)=900 productsWeekly+Specialty=250+375=625 Productsx2 (fee)=1250 products
Small center average
Summer+Specialty=150+900=1050 Productsx2 (fee)=2100 productsWeekly+Specialty=1500+900=2400 Productsx2 (fee)=4800 products
Across YMCA association average
11 | CHILDCARE DAILY RATE POCKET SLIDE | ©2011 YMCA of Metro Chicago
UNSUBSIDIZED CHILDCARE DAILY RATE
Product Pricing Model RatePrice
Structure
# of prices
Current Weekly variable rate
x M/NM x AM/PM
2: $00 3: $004: $005: $00
288 x16 4,608 avg
Lattof=8 | 000Elm=15 | Y=000
AVG Y=000
Daily RateStandard Daily Rate
x M/NM x AM/PM M: $00NM: $00
288 x 4 1,152 avg
Lattof=8 | 000Elm=15 | Y=000
AVG Y=000
12 | STANDARD DAILY RATE POCKET SLIDE | ©2011 YMCA of Metro Chicago
STANDARD DAILY RATE DECISION
NO POLICY CHANGE
JUST CREATES MORE
FLEXIBILITY!
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 | IMPLICATIONS OF CURRENT PRICING MODELS | ©2011 YMCA of Metro Chicago
MAJOR IMPLICATIONS WITH CURRENT 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 | 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.
