How To Raise Your Prices And Get MORE Work!
The No. 1 way to increase your company profits is to charge each customer more, thereby increasing the average yield from each job and thus making your business far more profitable.
But there is a right way and a wrong way to do it….Let’s have a look at ways to successfully increase your prices and actually get more work because of it!?
There is not a product or service on the planet that doesn’t have a range of price alternatives on offer, from buying a smart phone a watch or a car to, eating at a restaurant or getting a haircut. But why does someone buy a $1500 TAG watch when an $89 Swatch does the job?
With a product it’s a little easier. A bigger brand comes with a inflated social status through marketing and advertising getting people to shell out ridiculous amounts of money for them.
Is a TAG watch really a better watch than a Swatch watch? Yes there is a quality difference in some components, but does that justify people paying 1000% more than they need to just to tell the time?
In the service industries we are working mostly with intangible things, so why would someone spend more on getting a tree removed or laying pavers, when the end result is the same whether they pay the cheapest price or the most expensive one?
There are 3 main things you will need to focus on when presenting your companies services at the quoting stage to present your service as a better quality one worth paying extra money for. They are service, experience and vision.
People only pay more when they think they are getting more…. So give it to them!
Firstly, steer clear of generic terminology when referring to your service. Remember your service is superior and you need to convey that in the quoting process. For example high end hair dressers are not called hair dressers, they are called “hair studios”. So why are you calling your service a ‘tree trim’ a ‘tree removal’ or a ‘retaining wall installation’?
What about a “master pruning service” instead of just a trim and why call it a tree removal when it could be called a “tree extraction & disposal”! Retaining wall? What about an “earth retention unit”.
Making this distinction is instantly going to get your customers attention and set you apart from the rest.
A big part of selling your service is showing the customer what ELSE you can do for them. A lot of the time especially in landscaping the customer has an idea of what they want, but you have been doing it for years and have a much better way which will enhance their job 10 fold… share that vision, make them believe in you and make them see your vision.
You need to be careful here because we all know what happens when a hairdresser inflicts their “vision” on you. It take about 2 weeks to start feeling normal again, so don’t be too pushy or they will go cold on you, but making a unique suggestion that nobody else has bother to do can be all it take to win them over no matter what you are charging them.
What if there is no “vision” to be had with your service like when removing a tree? What else can you do for them which will enhance their experience?
What about spreading the mulch generated from their tree removal back in the garden for free?
What about providing and spreading sugar cane mulch in their garden (which white ants can’t stand) after the job, so any possible rogue termites don’t end up destroying their house? How can you protect their lawn in the removal process…..? Get creative.
All these things won’t add a lot of time to your job, but will add massive value in the eyes of the customer and they will pay hundreds extra for the enhanced service experience.
The biggest part of the quoting process when ‘pitching’ your business and vision to the customer is educating them. Taking the time to go into detail about important features of your service and explain why it is better. Maybe you use a certain sand concrete mix ratio when laying pavers or you dig your retaining wall foundations certain depth.
Whatever it is, you need to educate and empower the customer. In doing so you are subtly showing them the superiority of your knowledge and service.
These 3 basic concepts are used to make you stand out from the crowd and be able to command a high price for your service. This will also have a knock on effect with your word of mouth referrals.
Because you sold them a higher quality service, they will be more likely to brag about it and recommend you to their friends. You’ll never hear someone talking about their new Toyota Yaris, but the guy that just bought an Audi or BMW, they can’t wait to tell their friends about it.
At the end of the day we have all paid more than we would have liked to get superior quality of service or product and there is no reason why the tree or landscape industries should be any different.
Start to work on ways to separate yourself from the crowd and work those ideas into your business ‘pitch’ and service once you have the job.
Before you know it, you’ll be charging like a wounded bull.