Many business owners make the mistake of not charging what their time is worth, fearing that they will scare away business or not have enough work. Here's why you need to charge a fair and firm price.
- Expenses: Running a business costs money. There are expenses that most non-business owners will never know about. You have marketing,insurance, phone, internet, supplies, maintenance & repairs etc... Plus, your time is worth something. isn't it? I am amazed at how many people think that what I charge for carpet cleaning is what I make. I wish!
- Expertise: Your price must also reflect your experience and knowledge. You weren't born being great at what you do. You had to learn to do what you do and how to be the best at it. Learning takes time and money. Someone has to pay for that. In the long run, they will realize how good of a value your service really is.
- Value: People want value for their hard earned money spent. There's a reason why Filet Mignon costs more than ground beef! If you explain the value in your service, they will pay you what you're worth. Even in a bad economy, Mercedes still has plenty of business. We charge more than most other carpet cleaners, yet have more work than most of our less expensive competitors do! Why? because we do a good job explaining what value comes with our service.
- Change with the change: When your cost of doing business goes up, so must your prices. No one should expect you to work for less than you did, in previous years. Early on, I learned one of the most important lessons ever. I took a marketing class and the instructor told us to go and raise our prices by 10% and to do so, every 3 years. Many of the attendees said that they were afraid that would scare people away. He stated that even if you scared away 10% of the people, that you will be making the same money for doing less. We have employed that philosophy and it has never let us down.
- Introductory price: If you are a new business and are looking to grow your business, you can offer a special or introductory offer. Just make sure that you can still turn a profit. Let them know that this is a special price, for first time customers or they will expect that price, every time. Doing work for free is not fun, unless you want to.
There are many carpet cleaners, that charge much less than we do. We make good money fixing their mistakes.