March 2016 Foreword: Way Too Cheap

iStock_000013638042_Large-e1457123156976

“My competition’s pricing is so cheap!”

“I can’t believe how little they charge for cleaning.”

“I saw one of their estimates. It was about three cents per square foot. How can I compete with that?”

Perhaps you have had similar sentiments or have made outright statements about the pricing practices of your competition. When a competitor of yours charges a fraction of what you charge, you have to wonder how and why they do it.

A few reasons come to mind:

  1. Their cost of doing business is much lower than yours, and when they charge less, they are still making money.
  2. They are desperate, just want more jobs and — most likely — will soon be out of business.

Speaking to point #1, controlling costs is a smart business move. We all work hard to reduce expenses, and it’s nice when we pay less for typical costs of running a company. Yet, when you are able to keep your costs of doing business low, don’t succumb to the knee-jerk reaction of lowering your prices just to get more jobs and keep busy.

As to point #2, this is a typical move by new companies who come into the industry but are soon heading out. You have seen start-up companies come and go; it happens all the time, and, yes, they do take a few of your customers. There’s not much you can do to compete with them on price. What you can compete on is quality.

If you think pricing is the most important way to get more customers and jobs, I challenge you to rethink your pricing strategy. The very best customers, the ones you covet, do care about price, but more importantly, they care about quality.

Each one of us looks at price as the first step to purchasing a product or service. We are human, after all.jeff cross signature

As a consumer, what you really want is quality — and a little convenience doesn’t hurt — at a fair price. So, do your company a favor and give that to your customers. You will find price doesn’t really matter… well, not too much.

 


Jeff Cross is the executive editor of Cleanfax and is an industry trainer and consultant. He can be reached via email at [email protected].

Jeff Cross

Jeff Cross is the ISSA media director, with publications that include Cleaning & Maintenance Management, ISSA Today, and Cleanfax magazines. He is the previous owner of a successful cleaning and restoration firm. He also works as a trainer and consultant for business owners, managers, and front-line technicians. He can be reached at [email protected].

Follow Jeff Cross

Related Posts

Share This Article

Join Our Newsletter

Expert Videos

Popular Content

CoreLogic

CoreLogic: Spearheading Innovation and Technology in the Restoration Industry

Insurance_Webinar_600x300_CF

Insurance Restoration Strategies Unlocked: How to Identify & Conquer Top Challenges in the Industry

AI sales

Is AI Going to Be the Death of the Salesperson?

Grow your social media

The Digital Marketing Demystified Series—Part 2: Grow Your Business with Social Media

Digital Marketing - Part 1

The Digital Marketing Demystified Series—Part 1: World Class Email Marketing

Polls

As a floor cleaning contractor, which of the following best describes your approach to marketing:

View Results

Loading ... Loading ...