Should You Drop Your Prices To Compete?
In the cutthroat and competitive world of the cleaning industry, is it ever a good idea to drop your prices in order to compete and win business? Now, we aren’t talking the odd discount or voucher scheme here, just to be clear, we are talking about agrressive, predatory price-slashing to win business based on being cheaper than everyone else in the market place.
Good idea? Yay or nay?
My answer to this is an absolute and definite NOOOOOOOOOOOOOOOO!
It is a crazy business strategy to drop pricing to compete – the one and only time a complete drop in prices should ever be considered is: if you did not do enough market research pre-launch and have found that you have priced yourself out of the market place and need to rectify it… other than that, you are just asking for trouble if your drop your prices and here’s why:
Not all clients base their sole buying decisions on price – Potential clients are looking for the service that will give them the desired outcome they want. Potential clients are looking for a business that is easy to deal with, has a perceived value and brand, and will do the job that they say they will. Potential clients want trustworthiness, testimonials and a good reputation, and are willing to pay for the right service.
What can you do to make your business worth more to potential clients?
- Provide a better service – Review your products and services, review your client care policy and ask yourself what are you doing/or what do you offer potential clients? Would you buy from you?
- Provide a better experience – How do you handle potential clients from the first call they make to the follow up after their service is completed? Do you have a policy? How do you know if people like your service or not? What do you do that gives value to your potential and existing clients?
Take a look at the below video that accompanies this post:
What do you think of today’s post? Do you agree or disagree? Do you think it is ever a good idea to price aggressively? Please pop any comments below and we can have a discussion about it.
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Until next time,