Pricing and Duration Best Practices
Section A. Plan Duration Lengths
Mulberry can currently offer between 1 and 3 different duration lengths on a warrantable product.The available plan duration lengths are 1, 2, 3, 4, 5 and 10 years, and are configurable by product category within the retailer’s assortment. For example, Indoor Furniture may offer 2-3-5 year durations, while Mattresses might offer 5-10 year durations.
At time of integration, Mulberry will make the appropriate plan duration length recommendation for each category based on the business information provided in the Mulberry Retailer Startup Questionnaire. Retailers have the option to launch with Mulberry’s recommended durations, or nuance them as they see fit.
It’s important to align duration lengths with the average product selling price and the shopper’s expected “use life” of your categories.
Category (Avg. Price): Duration Lengths:
Furniture (> $750) 2-3-5 Years, or 3-5 Years
Gadgets (< $500) 1-2-3 Years, or 2-3 Years
Smart Fitness (> $1,000) 2-3-5 Years, or 3-5 Years
Home Goods (< $250) 1-2-3 Years, or 1-3 Years
BBQ Grills (> $500) 2-3-5 Years, or 3-5 Years
Appliances (< $500) 1-2-3 Years, or 1-3 Years
Appliances (> $750) 2-3-5 Years, or 3-5 Years
Mattresses (any price) 10 Years, or 5-10 Years
Luggage & Bags (> $200) 2-3-5 Years, or 3-5 Years
Footwear/Apparel (any price) 1-2-3 Years, or 1-3 Years
Watches/Jewelry (> $500) 2-3-5 Years, or 3-5 Years
Section B. Plan Pricing
Mulberry’s finance team will provide you with appropriate customer-facing price recommendations by category and duration, based on your company’s attachment, revenue and gross margin goals. Retailers have the option to launch with Mulberry’s recommended pricing, or nuance it as they see fit.
Merchandised plan prices are recommended in order to incrementally improve revenue & gross margin without impacting attachment.
Calculated Price: $22.75
Merchandised Price: $24.99
Calculated Price: $51.25
Merchandised Price: $49.99
Calculated Price: $166.00
Merchandised Price: $169.00
Plan price endings are recommended to be consistent, and to match your prevailing price endings already in use. This is in order to minimize unintentional cognitive dissonance between your merchandise prices and your Mulberry plan prices.
Merchandise Price: $199.99
Mulberry Plan Price: $24.99
Merchandise Price: $149.95
Mulberry Plan Price: $19.95
Merchandise Price: $1,450
Mulberry Plan Price: $149
Merchandise Price: $1,450.00
Mulberry Plan Price: $149.00
Updated about 1 year ago