Subscription Stories: True Tales from the Trenches How to Price for Both B2B and B2C Subscriptions with American Home Shield’s Braeden Russell
Oct 2, 2024
In this insightful chat, Braeden Russell, Director of Pricing for American Home Shield, dives into the intricacies of pricing strategies for home warranties. He discusses how to balance the needs of realtors gifting coverage to new homeowners with those of the homeowners themselves. Russell explains the importance of adapting pricing models over time and explores the shift between B2B and B2C strategies. With engaging anecdotes, he emphasizes customer trust, retention, and even shares a fun speed round on favorite foods!
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Home Warranty Coverage Explained
- American Home Shield's home warranty covers major home systems and appliances not covered by home insurance.
- Originally tied to real estate transactions, it has evolved into a direct-to-consumer subscription model.
Pricing Strategies Differ by Channel
- B2B realtor pricing stays consistent by geography to keep messaging simple and repeatable.
- Direct-to-consumer pricing uses dynamic, zip+9-based pricing for more precise, customer-level charges.
Pivoting Realtor Value Proposition
- The home warranty product shifted from a seller's deal incentive to a tool to strengthen realtor-buyer relationships.
- It's pitched as a "phone call saver" to reduce realtors' client service burden after the sale.