Discount to Disaster

Pricing is one of those things that can be difficult but it’s necessary to get right.

For example, if you want to scale and grow your business, ineffective pricing will stop you in your tracks. Or, if you manage to still grow, it will be dragged down by the one-ton boulder strapped to your leg.

At a business breakfast the other day I sat next to a woman who told me she wanted to start a cleaning business.

And her strategy was to see what others are charging and “charge better.”

I told her that would be a recipe for disaster.

Two reasons:

First, cleaning businesses are a commodity. Instead of wasting time on what others are doing and charging, start by standing out from the crowd.

Find out what annoys customers or what they’re still struggling with when it comes to their current cleaners and fix that problem.

I asked her what she doesn’t like about the cleaners she’s hired in the past, and she raised a good point (which I can relate to).

And so realised quickly that this could be her hook and where she could stand out.

And that going cheaper was not the answer for the second reason – there is always someone out there who can charge less than you.

This puts you in a downward spiral – as if you were on a plane full of people who are magnets for bombs and missiles.

On the other hand, standing out and being able to deliver on a unique promise has customers wanting to buy from you – and on your price.

So this woman could charge based on how much better her customers would feel after her team cleaned their house, compared to how they would feel from monkeys who cleaned for peanuts.

And these customers would tell their friends who have higher priorities than just hiring the cheapest.

And with higher profits and higher cash flow she can invest in expanding the business and so scale much higher.

Without the one-ton stone

Nor deal with annoying price fanatics. In fact, she can merrily send them to her competitors and let them deal with their zombie nonsense.

How are you pricing your solutions?

Get Unstuck in the next 30 Days

Want to start doubling your business within the next 30 days without wasting your time and money on expensive trial and error hacks?

If you feel stuck and unsure where to go next, join our next owner’s table, where we talk about identifying and smashing the roadblocks in your business that hold you back.

The next Owner Tables are on the 19th of September:

Dubai In Person: 8:30 am in Jumeirah 1.

Online: Zoom at 10 AM EST / 3 PM UK / 6 PM GST.

We’ll discuss common roadblocks and best practices to overcome them.

Register at the following link: Attend the Owners Table.