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Tax Commission

Pricing Study

Several stations were studied based upon the price they are charging for the renewal service and the number of transactions that they are completing per month. We made three basic conclusions:

  1. Offering the service for too little (free to $3.00) was not enough incentive for the station to offer it actively to every customer and therefore they did not do as many transactions. Also, many full service stations, which do not do strictly inspections, are offering the service for free as a customer courtesy.
  2. At $10.00 there seemed to be a significant decline in the number of customers willing to pay for the service.
  3. At $7.00, a high number of customers still seemed willing to pay, and the station is able to make the most amount of money.
Number of Renewals Per Month by Price Revenue by Price Charged