There are only 3 ways to grow your business.
- Find more new customers to sell your stuff to.
- Sell more stuff to your current customers.
- Raise your prices.
When it comes to prices, let me ask you this question: When was the last time you raised your prices?
For most business owners, this is a terrifying thought. They believe…..and incorrectly so…..that huge numbers of customers will bail out and cancel their services if given a price increase.
The fact is……. most businesses just don’t know how to raise their prices and get away with it.
Actually, there are some distinct advantages to charging a higher price than your competitor. Does that surprise you? Probably.
So let’s take a look at a few things that might change your mind.
To begin with, I’m putting my money where my mouth is. I owned and operated my own pest control company for 18 years. And during that time, I was absolutely the highest priced pest control company in the Atlanta area, with very few, if any, exceptions.
And my company grew an average of 13% annually for 18 straight years, until I sold it.
How was I able to charge much higher than average prices and still get plenty of new customers? The answer is……because I found ways to justify my prices. I gave them value.
Chuck Reaves says, “Price is not an issue if you have properly established your value.”
Price is what you pay for something. Value is what you get in return. I was able to offer a much higher value…..at least in the minds of my customers.
Ah…..in their minds! That’s where the reality exists. What do they think? What is their perception? How do they feel? What do they expect? What are they really looking for?
And… more importantly…what do they perceive they’re getting?
These are the questions you must be able to answer if you want to set yourself apart from your competition and successfully command a higher price for your services.
When I owned and operated my pest control company I created an EXPERIENCE for my customers. I used every way I could think of to not only educate them, but to entertain them as well. I wanted to give them something that they absolutely could not get anywhere else.
My company was like no other pest control company. I literally created a culture of faithful followers. And they were willing to pay me more money to be a part of that culture!
- I created and produced audio CDs, videos, published my own magazine (which I called, The Homeowner’s Pest Protection Manual).
- I blogged.
- I did live speaking engagements.
- I wrote and published lots of humorous articles and letters to my customers.
- I did a monthly newsletter.
- I became involved in the community.
- I got to know all of the movers and shakers.
- I made it a point to be seen with all of the right people in all of the right places.
- I learned how to get myself into the newspapers and on the radio and television on a regular basis.
- I had people talking about me.
- I became the “Bug Guy” everyone knew, loved and trusted.
- And I learned how to convey my unique message in my oral and written presentations and on my website in such a way that they (they meaning those people who were willing to pay more) got it.
And they proved for 18 straight years that they were willing to pay a higher price to do business with ME. In their minds, I was worth more than the others and they didn’t mind paying more to get me.
Here’s what Craig Garber says about higher prices…..and I agree with him wholeheartedly.
1. “ High prices alone can increase sales. QUALITY buyers often assume higher prices equate to greater value.
But remember, you’ll only get the benefit of the doubt on this ONCE. So make sure you deliver and don’t waste your buyer’s time and money.
2. High prices generate curiosity. And curiosity is one of the MOST compelling buy-buttons you can push!
3. High prices stimulate want. No one longs for cheap stuff. Quick examples: Old Spice or Fahrenheit? Disneyworld or Busch Gardens? New York City or Shamokin?
- A high price presumes great value. All you need to do is justify this. Meaning…..your buyer is already open and expecting you to be selling something really cool. The job is yours to have, if you want it – no convincing involved
- Higher prices give you MUCH better quality customers. The absolute WORST thing you can do to yourself is have a bunch of tight-wad tire-kickers as your customer base. Folks like this will dilute your cash-flow and make you insane. (They’ll also bail on you as soon as someone dangles a cheaper price in front of their noses.)”
I used to ask some of my competitors why they sold their services at such a low price.
They usually replied, “It’s tougher in my town. We can’t get those high prices like you do.”
And I would respond, “Yes you could. You just don’t know how.”
Food for thought.
Thanks for reading this letter, and I hope you have a great day!
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Feel FREE to call Me at 770-993-0004 or email Hal@HalColeman.com