Managing and Remodelling Finance
Providers moving into personalisation will have to consider a whole raft of financial issues. Not least that you will probably be providing a range of different services from which people can pick and choose the elements that suit them.
It is unlikely that people will want to pay the same amount for a cleaner or gardener as they will for someone who has benefits or other expertise. Providers will need to work out the true costs of their current service, factor in all the different variables that could occur such as
- timing of visits
- type of care/support
- choice and expertise of care/support worker
- whether that particular services in input driven (ie specific number of care hours) or bought in terms of the outcome (ie benefits advice, respite care).
Then determine the price for their service, again potentially having some elements which are priced on input and some which are a fixed price based on the outcome.
Providers will need to raise individual invoices for each client and this could increase your administrative costs. Our consultancy services guide you as you consider:
- How to invoice, in advance, arrears? Monthly, quarterly?
- How to manage payments
- Reducing fixed costs to achieve a lower break even point
- What to do if people do not pay
- How to cost different services