In the September/October issue of Senior Living Executive published by Assisted Living Federation of America (ALFA), Jim Moore discusses extensively the various components of pricing and how it all works together for (or against) your community. In this article you will find that:
· More than 40 percent of the cost of operating an assisted living community comes from hands-on direct care and dietary/ food and beverage.
· Reducing or using short term incentive pricing strategies on substandard units decreases a community’s projected revenue in the short run, but has a stronger long-term outcome.
· Pricing concessions represent real money, but so does the lost opportunity cost of each vacant unit.
· Senior’s and family’s pricing misconceptions form a flawed and dangerous mindset that must be addressed with pragmatic pricing strategies and communication.
Jim addresses the above items in great detail and clarification.
Please visit ALFA’s website where they have provided a digital version of the publication Senior Housing Executive to read the article Power of Pricing by Jim Moore in full.