Hi Tim & Matt,
Update on the Home Instead rate for Waterloo region.
I hosted a lunch and learn with all the Chartwell sales consultants today
for my region today. (7 Properties + Regional) One RLC is the former Home
Instead business development manager for Home Instead KW. She is still
well-connected to them, she started at Chartwell 4 months ago. During Q&A
she asked about our rates and how we are positioned to competitors.
First, THANK YOU again for approving $38 for referrals in Waterloo. If I
quoted $40-45 today I would have had a major challenge and risked losing
all the Chartwell's in my region. After I quoted $38 for referrals. They
all respond that Home Instead is currently quoting $39 to all of them, and
most competitors are quoting lower rates, we are one of the most expensive
at $38. They spoke about seeing the value TheKey bring but being
competitively priced is critical so that they can tell prospects that
although we are on the high end we are still competitive.
On Mon, Apr 17, 2023 at 2:11 PM Timothy Thomas <tt@thekey.com> wrote:
> Hi Beth and Matt,
>
> I understand your concerns and have also voiced mine as well to Chen and
> the executive team.
>
> Meera confirmed to me that we can onboard caregivers at an average rate of
> $19/hr therefore I'm willing to approve a rate of $38/hr from your referral
> sources. On the consumer lead front, we will hold the line at $40 for the
> next two weeks and see how it goes. We'll be watching closely and adjust if
> needed.
>
> Hope this helps.
> Tim
>
>
> On Mon, Apr 17, 2023 at 9:48 AM Matt Vijayan <mvijayan@thekey.com> wrote:
>
>> Hi Beth,
>>
>> Thank you for these useful insights. We have already talked about the
>> pricing for Waterloo. The pricing decision is not just based on competitive
>> rates but also on the caregiver wages; the corporate mandate is to hit at
>> least 50% gross margin. Keep Tim and I in the loop when you have a
>> situation where the pricing can impact winning the client.
>>
>> @Timothy Thomas <tt@thekey.com> In the competitive market analysis from
>> TheKey corporate, *Home Instead Waterloo* quoted $45 for complex care
>> and $40 for market (skewing up the TheKey market rate for Waterloo). This
>> is contradictory to the mystery shopping done through Beth's contacts. The
>> other two competitors' pricing is consistent. I know we talked about the
>> variable market dynamics (Waterloo vs. the GTA) and this finding just
>> validates that we need to apply Toronto rates to Waterloo.
>>
>> Best regards,
>>
>> Matt
>>
>> Matt Vijayan, B.Sc., MBA, CCPE
>> Director of Sales, Canada
>> *Please note my email has changed:*
>> mvijayan@TheKey.com <Madhu.Vijayan@TheKey.com>
>>
>> TheKey.ca
>> [image: TheKey] <https://www.thekey.com/>
>>
>>
>> On Fri, Apr 14, 2023 at 5:44 PM Elizabeth Sparrow <
>> beth.sparrow@thekey.com> wrote:
>>
>>> Hi Tim
>>>
>>> I spoke to Matt briefly yesterday about my concern.
>>> (I apologize for sending this late Friday, no need to respond until next
>>> week.)
>>>
>>> My first concern is that the new market rate of $40 and complex rate of
>>> $45 will price us out of the market in Waterloo Region. We already have
>>> "sticker shock" issues when $36-38 is quoted. We also have a higher minimum
>>> of hours.
>>>
>>> I am supportive of the new structure and understand why these rates were
>>> set to achieve the desired margins of 50%. However, knowing this region
>>> and the customer decision-making trends the new rates will impact our SOC
>>> and our ability to have any success in this Region.
>>>
>>> Secondly, the HCLs are still establishing referral sources. The
>>> importance of taking the majority of leads given to us from referrals,
>>> (non-elephants) is essential. Otherwise, referrals will refer directly to
>>> competitors. I am hearing regularly right now that Retirement homes are
>>> completely overwhelmed by home care sales consultants. They have piles of
>>> collateral on their desks and daily calls/drop-ins trying to get
>>> referrals. There are challenges already to be a top referral if we turn
>>> down too many leads due to low hours/usage they will move on to a
>>> competitor who will.
>>>
>>> Below are mystery shop quotes given just in the past month in Waterloo
>>> Region:
>>>
>>> $36 Home Instead (3 hr min, 12 hrs/week)
>>> $38 Nurse Next Door (4 hr min, 12 hrs/week.)
>>> $36-42 First Light Home Care ( 3 hr shift)
>>> $30-35/hr (KW care (1 hr min.)
>>> $38 Warm Embrace
>>> $38 promise
>>>
>>> As we are trying to establish a new brand we are at a major risk of
>>> pricing ourselves out of the market. Competitors are hot on our heels to be
>>> a top referral. Prioritizing all leads from referrals is essential for
>>> future elephants.
>>>
>> --
>>> Beth Sparrow
>>> Home Care Liaison / Business Development
>>> *Please note my email has changed:*
>>> beth.sparrow@TheKey.com <Beth.Sparrow@TheKey.com>
>>> (226) 771-9243 Direct
>>> (519) 954-2111 Office 24/7 coverage
>>> TheKey.com <https://www.thekey.com/>
>>> [image: TheKey] <https://www.thekey.com/>
>>>
>>>
>
> --
> Tim Thomas
> Head of Canada Division
> *Please note my email has changed:*
> tt@TheKey.com <tt@thekey.com>
> (514) 591-9387
> TheKey.ca <https://www.thekey.ca/>
> [image: TheKey] <https://www.thekey.com/>
>