Service Business Owners – Don’t Make it a Low Price War
Tuesday, May, 13th, 2014 at 9:00 am by Mike J. Agugliaro
If you’re running a plumbing, electrical, or HVAC business, have you thought about how your pricing plays a role in your company’s success?
In working with service contractors through CEO Warrior, I’ve learned that a lot of business owners believe that offering the lowest prices in their market is the key to making more money. Have you taken that same approach, thinking that it will help you maximize profits by bringing in more customers? And don’t try to tell me your market is different.
The prices you set for your services need to follow a few guidelines, namely: the types of services you offer, your target audience, and your overall corporate strategy. That strategy should be built on what sets you apart from your competition – your competitive advantage. It could be a unique service that no one else offers; it could be how far you go in your service areas; or it could be a unique marketing strategy you use.
If you try to use low pricing as your competitive advantage, you’ll lose. Companies who build a strategy around low prices have to maintain a focus on keeping those prices low. It might draw bargain hunters to a company, but it doesn’t really set it apart – or inspire loyalty in customers.
So what sets you apart? Figure that out first – and then base your pricing strategy on that.
Pricing is just one part of business mastery – I’m covering it all in my upcoming three day $28 Million Dollar Fast Track Academy! Follow the link to find out how to register for this incredible, intensive business-building event!
Mike Agugliaro, “Business Warrior”
Founder of the $28 Million Dollar Fast Track Academy