Article: Customers Want More and Are Willing to Pay For It...
Early in my business career, the top carpet cleaner in my area shared with me a profound observation: “It’s crowded at the bottom.” In virtually all businesses there is a range of prices set for products and services. The price is generally a reflection of the quality and professionalism of the product and service offered. There appears to be intense competition for the position of “lowest price leader,” and carpet cleaning services are no exception. I chose to stay away from the crowd and build my carpet cleaning company in such a way that I would be able to charge at the top end of the price range. I have built my company with only repeat and referral business. For years, I have been one of the highest price carpet cleaning company in the greater San Francisco Bay Area. I discovered that as my prices increased, my clientele also started to change. The size of the homes I work in got larger. The clients maintain their homes better. This means I’m called out on a regular basis for maintenance cleaning and the carpets aren’t as dirty. These clients are very loyal and the number of referrals keeps going up. I find that I am treated with more respect and the environment is a joy to be in. Since most of the other carpet cleaners are still competing to quote the lowest price, I still have virtually no competition. Along with all of these benefits, my profit margins keep going up. Now, I need to clue you. If you just start raising your prices, you will probably lose the customers you already have. Your company and service will need to change to deserve the price increase. What is it then, that will motivate customers to pay more for their carpet cleaning services? It has been found that customers base their buying decisions on three basic criteria: 1. Price 2. Quality 3. Service There are times when price is the main concern for a customer. Price becomes the deciding factor when, in the customer’s mind, all other factors are equal. Price is...