Having worked with thousands of business owners over the years it’s my experience that almost every SME business sells themselves and their products way too cheaply, but raising your prices and selling more expensive products and services to the higher end of the market is one of the fastest, easiest and cheapest ways to increase your profits.
The fact is this … less than 20% of the population, and this includes your carpet cleaning customers, make their buying decisions based on price alone, so to most of your customers price is not the main issue in a transaction.
More often than not a low price is will terrify people, so why offer a low price at all?
Don’t believe me when I say people are scared of low prices?
Well, would you pay £20 for laser eye surgery? Would you eat at a Chinese restaurant advertising “all you can eat” for £1? Would you buy a car for £200 and expect it to be any good?
Would you risk it?
As with most things the 80/20 rule applies. If you sell most of your goods or services for £100, then there is likely be 20% of your customers who would be willing to spend, say £400 or £500, if you gave them the option to.
What’s more, of that 20% who would happily pay more if you gave them the option, some will even be prepared to pay substantially more if you gave them the opportunity to, and believe it or not it’s much easier to sell one item at £10,000 than it is to sell a hundred items at £100 if you are targeting the right people.
The trouble is, if you don’t ask your carpet cleaning clients if they want to spend more, then the chances of them offering you this huge bounty is zero, so why not create a deluxe offering and offer it every time you do a quote? This will cost you little to offer but you can command a much higher price for it.
You never know … some people may actually go for it. Ker-ching!
Our “Pricing For Profit” course gives you all the information you need to know to develop your highly priced strategy in your carpet cleaning business, as well as our unique “Profit Booster Cash Injector” pricing spreadsheet too. Check it out and seriously raise your income!