Challenge

For over fifty years Montavilla Sewing Centers had been giving away discounts on repair services as they thought offering the discount would bring customers back in after they had purchased the product. As it turned out, the profitability on repairs were low and the amount of customers that came back were not consistent. Listening to a sales person talking to a customer about repairs, we realized a possible missed opportunity.

Solution

Working with the third-generation owner, Brett Moore, together we discussed an idea for developing a service that could be purchased as a product. We developed a name for it, along with the details outlining three options for their customers. The Advantage Plan was developed. Customers could choose a Repair Plan that was aligned with what repair services they desired. Being enrolled in the plan assured a consistent cost at any time after their purchase of the sewing machine. We designed a 11″x4″ folder that explained the advantages to the plan with easy-to-understand options and included a pocket for the purchase receipt.

Results

“In the first year we used the Advantage Plan our profitability increased by 12%. It was an exciting and fun way to grow.” -Brett Moore, Owner