There is one thing that all businesses that fail have in common. Their last official act before they close is to cut their prices and have a big sale
When you consider cutting your price for any reason, consider some of the consequences. Cutting your prices mean you have to generate more sales in order to maintain your gross profit margin.
Another drawback is that people who expect high quality services, do not usually look at a low price as a major consideration in the buying decision. In fact, a lower price may deter a person who is seeking high quality service. The adage "you get what you pay for" comes into play here.
A service cannot be built in advance, stored in a warehouse, mass produced or purchased in quantity and then offered for sale. Services must be constructed one at a time after an order is taken.
Cutting price opens the door to a reputation as a price merchant. In the service industry, there is a market for price merchants. However, when a company publishes extremely low prices, then their quality is usually low quality. The other side of that coin is you have a company that offers high quality at a fair price.
Consider this, a company cannot compete in both the low-price and high-quality markets. It must be one or the other.
Related carpet cleaning business information on the Bane-Clene® web site:
- Advertising. . . the Essential Element in the Carpet Cleaning Business
- Advertising the Bane-Clene® Way
- Bait and Switch in the Carpet Cleaning Business
- Bane-Clene® Marketing & Advertising for the Carpet Cleaning Industry
- To Price or Not to Price
Thank you for reading Bane's Blog.
The Bane-Clene® Team