Having to compete with PROs who slash their prices is a frustrating experience. We’re talking about the type of PRO that aims simply to undercut the rest of the competition by offering the lowest rate. Too often, they attract many clients as customers find it hard to turn down a bargain.
What usually happens, however, is that these prices are too good to be true. If a PRO is price-cutting, it means they’re cutting corners somewhere else along the line, too. While it may be tempting to drop your prices in order to compete, we feel this is the wrong way to go.
Your strategy must instead be to convince customers that your prices are worth paying. Here are some ways you can do so:
The day you lower your prices is the day you show weakness. Don’t panic and budge. Remain confident that the service you provide is worth the extra fee. It might mean taking a hit temporarily, but customers will soon tire of shoddy service from the cheaper PROs and come looking for the true professionals.
When they come knocking, be frank and honest. Tell them you have seen the competition’s standards – “their units are constantly messy, probably because they only service by pumping and refilling with chemical and leaving” – and let them know you’re not happy with this level of service. Your company goes the extra mile.
That said, don’t take an “I told you so” attitude. Be ready to step in and do a better job. Let your actions do the talking by showing customers that you provide superior service. Be on time when delivering and collecting units and be easily contactable and accessible throughout the job.
Many of the price-cutting PROs will try to maximize their profits by buying only the cheapest cleaning products and units. Make sure your customers know that you spend a bit more to get the most advanced cleaning products and units. Tell them that, in the long run, it saves everyone money and provides peace of mind and long-term reliability.
Inform your customers that the price-cutting competitors will often do a rushed job. They make less money per job, so they will put in fewer hours per job. Customers end up dissatisfied with cleanings that are not thorough. You, on the other hand, should never rush but work efficiently and thoroughly.
Cheaper PROs are often short-staffed or hire less-skilled employees. Inform potential customers that you hire the best workers in the area, pay them well, and you’re not afraid to put all hands on deck to get a job done right.
The bottom line: Pricing matches quality of service. Our philosophy is to never defend your price, but always explain your value instead. For more examples of ways you can do this, see our infographic here.
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