Do you have price-sensitive customers who seem to shop around for the cheapest price?
I can tell you why this is happening and how to fix it but the question is: will you be brave enough to do something about it?
You see, there’s a very costly problem happening in the home service industry and I’m concerned that many people reading this blog will be suffering from it, and it’s CAUSING your customers to be price sensitive.
The problem is this:
… You start your service business
… You want to get your customers
… You see what your more successful competitors are doing to get customers
… You do something similar so you can get customers too
At first that makes sense.
But here’s why it’s a problem: Imagine that you are a homeowner who lives in a town with only one service business. Whenever you need one you call them.
Then another service business opens up in town. They are identical. So which one do you call? Well, you might be loyal and call the one you’ve always called. But maybe those people are really busy one day and you have an emergency so you call the other one. The new one comes by and helps you, and you realize that they are basically the same. Going forward you think: “it doesn’t matter who I call; the service is the same.”
That’s what is happening with service business owners right now. They aren’t striving to be unique; they are striving to be the same as their competitors.
Just think of the times when you’ve flown. You probably heard the pilot or flight attendant say: “We know you have a choice in which airline to fly, and we thank you for choosing …”
Sadly, those words have become so clichéd by being used on so many airlines that few people take notice of them. They highlight the fact that airlines are intensively competitive. (And most of us have a hard time picking one airline from another; their service is often very similar). There’s hardly an industry, niche, or business type on the planet that doesn’t have competition.
It’s extremely frustrating to me that so many businesses settle for mediocrity. Most service businesses give just enough value so as not to generate complaints, and not too much so as to keep costs low.
… The result? They seem identical to every other competitor out there.
… The result of that? Customers don’t care who they call; they just call the cheapest one.
So, what do you need to do to keep customers from being price sensitive?
We can see an answer from Apple: their latest iPhone is over $1000 yet people lined up around the block to buy it even though their old iPhone was perfectly fine.
That’s because Apple built a unique product (that was copied by others) and a unique brand (that other brands try to copy but fail). They have such a massive unique offering and people are not price sensitive about it at all.
We’re doing the same at CEO Warrior with our clients: we offer something that no other coaching and training company can offer.
And we’re teaching our clients to do the same: to create a business and brand that is so unique and powerful that customers don’t care the price, they only want the amazing service.
The world is a different place than it was even a year ago, and it continues to change. If you want to keep up with the changes, start by going in a different direction than the rest of your competition.
Raise your game, raise your brand, raise your service, and you can raise your prices.