Per-Door vs. Flat-Fee Pricing

A few of our clients have been asking if we offer per-door pricing.

We provide a short-term marketing package for communities in need in boosting occupancy quickly. The same amount of work goes in to setting up this marketing package for a 100-unit property as a 600-unit property.

If it's the exact same package, why would vendors offer per-door pricing? It seems like a gamble.

Could you help me understand why a larger community would want to pay more for the same service a smaller community would get?

Maybe I'm missing something here....

Thanks in advance for your input!!

Good question, Ryan. I ran across this myself, and I think it's just a budget language issue, really. In other words, they normally evaluate things on a per-door basis, so they want that format so they can compare easier whether the price is good for them. So for your point of view, I would just divide it out separately for each property, or if it's a portfolio, do a combined per door amount. (i.e., Price X Number Communities / Number of Doors)

I completely understand your question. We have the same issue, but found the per-door-pricing made our services more affordable for smaller properties. It was a hit we as a non-profit decided necessary to take.

I think many properties budget based on how much per unit they are willing to spend each year per line item and compare with their anticipated income for the same number of units in the year. That's my best understanding of the situation. However, I could be completely wrong on that one.