One of the new processes we are looking to implement is around tracking & fixing incorrect customer addresses that result in a charge from UPS (or Fedex) for address correction of $13.40 per shipment. Aside from our cost to build and implement this we would have to pay a 3rd party for the validation data. This looks to be about $600 per client per year or $24k for our roughly 400 clients. Based on our feedback so far, clients are seeing UPS correction charges over $600 per month.
Our model has always been to charge a flat monthly fee that includes all of our processes. We are kicking around whether to offer this new process at an additional fee.
When we consider which processes have the biggest support overhead for us, two issues jump out:
The 1st is that of the 1,000 processes we offer we have a handful that are support intensive; we are considering limiting these support intensive processes to our Juice+ clients. We could include the address correction in this Juice+ only group. Our Juice+ program is an additional $1k per month for clients with less than 100 eAuto users.
The 2nd is that clients who do not give us a LogMeIn connection to troubleshoot issues generate 34% more work for us. We are considering charging non LMI clients (about 10% of our base) an additional 20% on their current rate and using this to offset our increased cost to include address correction.
We would love some feedback on which direction you think we should take, an additional fee for just the address correction, limit it to our Juice+ clients, charge our non LMI clients more? Or other options...