Episode 923 – The Psychology of Pricing
Mike & Suzanne tackle the question of what one needs to believe about pricing. They note that while many cleaning business owners seek advice on how to price their services, they do not ask the deeper question of how they should think about pricing. Often, business owners are afraid that they will price their services too high and lose clients or price them too low and appear foolish. To tackle these fears, Suzanne suggests writing down 50 reasons why the business and its services are worth 10 times more than what they are charging. This exercise can help shift the mindset from fear of loss to confidence in the value of the service being provided.
The coaches also note that pricing is about doing it for clients and not to them. Business owners need to remember that they are in business to make a profit and that they need to have the resources to keep their staff happy and provide good service to clients. Suzanne emphasizes the importance of understanding the company’s worth and believing in its value, as this can help business owners feel more confident in charging what their services are worth.
To address the fear of losing clients due to a price increase, Campion suggests gradually raising prices over time rather than making a sudden jump. This can help clients adjust to the new prices and avoid shock. Additionally, business owners should focus on the value they provide to clients and communicate this effectively. By emphasizing the benefits of their services, business owners can help clients understand why the price increase is justified. Ultimately, pricing is not just about math, but about belief in the value of the service being provided and effective communication with clients.
Love the idea, but find it overwhelming? Want to learn the next steps like, what to actually say on the call? Jump on a call with one of our coaches and learn strategies on how to grow your cleaning company and start loving your job every day! Book here