Today Mike is talking all about the belief that “lower prices = better”.
As always we are going to start with some common beliefs that you have to get over.
- If I Charge Small Enough My Customers Will Like Me:
- Some people make the connection that lower prices will leave them with an abundance of customers that appreciate the fact that you’re giving them a good service for a great price. However. the reality of the situation is that you will start to attract customers that don’t care about the service, and just care about getting whatever is cheapest. This second point may sound obvious, but the other big downside to charging lower prices, is having a lower profit. Oftentimes having more premium services that require more premium costs is more beneficial.
- You Have To Be Cheap To Compete:
- Many people think that you won’t be able to get customers if you charge higher prices, but in reality, the “cheaper” customers shouldn’t be who you’re going after anyways. The right customers want things like Systems, Insurance, Security, etc. and you’ll quickly find that people will pay for that. Knowing what your niche wants, and how to solve their pain will allow you to charge more premium prices, and therefore get more profit. It’s important to keep in mind that you don’t want to randomly go raising prices. In the Clean Profit Method, Mike extensively covers how raising prices just 20% can double your sales, and how to go about raising prices. It’s your job to educate your clients about your services, and about how margins, and how the price is justified.
- Customers are ONLY Interested in Price:
- If this were true, Mercedes wouldn’t exist. While it may seem that there isn’t anyone that is interested in premium services, the reality is that people are willing to pay, you just have to articulate and communicate exactly what you’re providing. A lot of members of Cleaning Nation that Mike has talked to in the past have made an excuse about how their customers would be outraged if you increase prices, but the truth is your customers are human just like you, and most of your customers will understand that you have margins that you have to meet, if you explain it well. When you raise the price on customers that you have already acquired, the approach is the most important part.
If you would like to talk to Mike one on one all about pricing, and whatever else you and your company may be facing, head over to GrowMyCleaningCompany.com/Talk and schedule an appointment today!