PRICING IS VITAL TO YOUR SUCCESS
I know at The Business Super Heroes we do talk about pricing quite a lot, and how pricing really isn’t the issue most business owners think it is.
And you know what … since we want you to be mega successful and highly profitable, we make no apology for that.
It is essential to price for profit, and one of the best ways you can do that is to take your time to develop a quotation SYSTEM which delivers consistently great results which makes the prospect crave your services whilst providing you, the business owner, with a ton of profit.
When I did carpet cleaning, which is a high profit, high mark-up service, I saw so many other carpet cleaners confusing the number of customers they had with the amount of profit they make. Personally I would always rather do just three or four jobs a week for £1000 than be crazy busy and do 20 job at £50 each just to say I’m busy.
I got many of my quotations for 2 reasons:
1) I carefully targeted my prospects
2) I had a system for pricing.
When you go out on quotations, do YOU have a system which produces reliable results and gives you a chance to up-sell?
Here is the spreadsheet I made up …
I know it looks cumbersome, but once you have set your parameters in the blue column your price and entered the details you can then consistently price on a level based system (which is where you charge more or less dependent on what the customer wants doing.)
THIS SYSTEM ALLOWED MY TO RECEIVE, ON AVERAGE, AND EXTRA £32 PER JOB. JUST FOR PRICING CONSISTENLY.
So, I would go round every room and measure up, and take a note of how dirty the carpets were and I would count the number of stairs, rugs or upholstery to be cleaned. This would give me a number which was automatically put into a level based pricing system to give the prospects the chance to spend more if they wanted to (and believe it or not most people did want to!)
Crucially, I then advised them how much it would cost approximately to replace the carpet, making my carpet cleaning services seem to much cheaper in comparison to replacing them, as well as telling the customer how little that price works out as per day!
The key thing with your quotations is a) they have to be consistent and b) they have to scream fair.
I based my quotes on 3 TOTALLY FAIR parameters:
* Size of the room to be cleaned (sq ft)
* How dirty the carpets are (since a dirty carpet will take far longer than a clean carpet to restore)
* What level of service they require
It is essential to have a system for everything you do in your business, and pricing is no different. A system is simply a set of routines which consistently produces the right end results.in the case of carpet cleaning, this system standardised my pricing, made me look like a total professional and just screams FAIR to my customers, even though I almost certainly delivered a higher than normal quotation!
You MUST devise ways like this to increase your profits on every sale whilst screaming FAIR to your prospect.