The Cost of Mystery Shopping

August 08, 2012 02:45AM

Edited 1 time(s). Last edit at 10/10/2013 02:17AM by CAscotch.

Create an Account or Log In

Membership is free. Simply choose your username, type in your email address, and choose a password. You immediately get full access to the forum.

August 08, 2012 02:47AM

I don't have a clue.

Mary Davis Nowell. Based close to Fort Worth. Shopping Interstate 20 east and west, Interstate 35 north and south.

August 08, 2012 03:39AM

This is considered confidential and you will not be able to find this out.

August 08, 2012 04:21AM

I've seen the numbers and I can promise you it's not as much as you think, especially after paying shoppers, schedulers, editors, and the bills for their offices. This is not a business for anyone looking to get rich, not the shoppers, schedulers, editors, or MSC owners. Only a small few really pull it off so that they've got money rolling in.

Sincerely,

Angie
"Editor Extraordinaire" (per Natalie

)

August 08, 2012 11:39AM

Like your sig!

August 08, 2012 02:45PM

Edited 1 time(s). Last edit at 10/10/2013 02:17AM by CAscotch.

August 08, 2012 03:28PM

CAscotch,
How many MSCs are you signed up with? You may be missing an important part of the market.

The big national companies may not be located anywhere near you but that does not mean that they don't have business near you. My friend Servanne lives in rural Minnesota and makes a very good living doing routes of well-bonussed rural locations. "A tad outside" a city should still be able to get you a lot of assignments if you are signed up with a lot of MSCs. Before you start marketing to potential clients, sign up with at least 200 MSCs to see who is shopping what near you. You may get some big surprises.

Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel

Poor customer service? Don't get mad; get video.

August 08, 2012 03:34PM

I'm not sure where you would look to find the information, but I think if you dig hard enough in the right places, you would be able to find out how much the MSCs charge for their reports.

Just because something is confidential, doesn't mean you can't find the answer.

Just like any other business though, there are many hurdles to overcome when starting your own MSC. As wales suggested, you're better off signing up with many MSCs first in order to get a better feel things.

August 08, 2012 04:11PM

A friend of mine who used to own a major brand gas station once told me he was charged $650-$700 per year for MS reports and they had to pay it. That's a lot of moolah when you multiply it by gazillions of these stations around the country.

*****************************************************************************
The more I learn about people...the more I like my dog..

Mark Twain

August 08, 2012 04:35PM

You might do best trying to focus on locally owned businesses. Chains tend to be shopped by big MSCs.

CAscotch Wrote:
-------------------------------------------------------
> I wonder because I live in an area where there is
> not a lot of mystery shopping. Big companies tend
> to focus in big cities. However, I live a tad out
> of the city and, although there are numerous fine
> dining in my area, there is no shopping companies
> around here. I figure maybe I can start something
> in my rural area... Just wondering how much to
> charge each report to stay competitive...

August 08, 2012 06:56PM

Of that $650 - $700 per year, figure a minimum of 50% of it goes to corporate to support the internal staff responsible for it's mystery shopping program. If there is any kind of reward system for employees/locations, that money comes from the fees individual franchisees/owners pay for the mystery shops.

It's true that MSCs are not in general big profit hogs. The lowering of shopping fees we've seen over the past few years may be in a small way due to greed of MSC owners but the bulk of it is due to the highly competitive nature of the business as it is today.

These big companies shopping for MS providers demand alot but at the lowest possible cost. Competition is such that some MSCs traditionally "low ball" a bid and then demand their staffs keep costs low. This doesn't allow for MS employees to make big bucks or shoppers to get high fees.

As Norm on "Cheers" once said, "It's a dog eat dog world and I'm wearing Milkbone shorts".

August 08, 2012 11:14PM

AustinMom Wrote:
-------------------------------------------------------
> Like your sig!

It's not a permanent one but maybe I'll make it. I was being facetious because Natalie, an editor with ACE, called me that the other day. Just felt that it should be known I'm an editor since I've seen what fees have been versus a guess of what I think they might be.

August 19, 2012 06:52PM

With that $700 figure was the person paying the corporate for that gas chain or the MS company. I know from talking to an employee at a location that they had to pay corporate, but if there score was over 86% they were exempt from paying. So the corporate office maybe be taking off a chunk before sending it to the MS company to allow for the locations who don't have to pay, along with the money that they set aside for the paying the internal staff for review reports, following up with the locations and developing training based on identified needs.

August 19, 2012 08:25PM

I am sure not shoppers, editors or schedulers...but someone gets the big money. Otherwise we would not have so many marketing companies...

Shopper and auditor since March 2012.
Cover all center/north Oklahoma and south Kansas.

August 20, 2012 04:46AM

Well, shoppers, editors, and schedulers don't start the companies. Some of those who do, see big dollar signs when starting up but never get to the heights the chosen few do.

Sorry, only registered users may post in this forum.

Click here to login

The Cost of Mystery Shopping

Create an Account or Log In

Official List of Mystery Shopping Companies

Mystery Shopper Magazine