How To Increase Profits During Your Busy Season – The Value VS Price Episode 69

Quote of the week: If anyone is having a bad day, remember that today in 1976 Ronald Wayne Sold his 10% stake in Apple for $800.00…now its worth $58,065,210,000!

I am having a great day!

I want to focus on just a couple of things that have to do with your busy season because, like me, you’re probably in it now. Today’s episode is just couple ways to increase your profit during this time because when you’re busy and running ragged, you can lose track of what’s really going on. That’s why putting together systems are so important.

I’m going to talk about Value Versus Price

We’ve gone over this before, but today is about what is really the perceived value as opposed to your pricing structure and how that affects your profitability.

I’m going to go through a check list of probably 14 or 15 things that will help you raise the perceived value of your business so that you can charge more. Making more profit at the time of sales and how to do that effectively, because if your customers don’t know the additional things that you have for sale, you’re both missing the boat.

So what are your other services how do you present them to your customers?

>> I’m going to give you the check list that we go over today..simply leave a comment with your email address and I’ll send you a copy of the check list!

Let’s start off today with what is it meant to sell value versus price. This is a really good one. Most contractors give an automatic discount from their marketing. I’ve seen 10% off here or even $500 off a full roofing roof job. By doing this you are basically fishing for “price clients” who are looking for a discount. So how do you put it in your marketing to sell value as opposed to price?

Selling value is a way of positioning your company in all of your marketing. Make sure you provide a value proposition on the services you provide and why you’re different than any other contractor in your trade or niche.

When you are able to actually accurately portray the services you offer that are different and over and above your competition, that raises the perceived value of your company. And when you can portray the value of your company, people will pay the higher price without any questions.

Using a funnel of great marketing to attract clients like this is the way to go. Basically you are preparing them with information in the form of a recorded message or report. By doing this your marketing explains the process, what you do, how you do it and why you do it. This could include something like safety features and benefits. Functionally you’re explaining everything to them that you are doing and why you do it.

It’s probably not any different than the other guy is doing, but you are taking the time to explain these things to your customers or potential customers and they are perceiving you as the expert, so therefore you have that opportunity to get the higher prices.

When you make a paradigm shift in your mind from value as opposed to price, you will start to market the value that is created for the customer. It really doesn’t matter what your competition is charging because if you set yourself apart from them as a value base businesses as opposed to price, your way ahead of the game and you’re going to leave your competition in the dust.

With the value building system from this checklist, I’m going to give you a few secrets then you will attract clients that are used to paying a premium for real value. So in reality, raising the bar on perceived value teaches you that value is everything. Just take a look at cars, are all cars the same? They all have four wheels and get you from point A to B. You like the car that you’re driving because of the features it has that appeal to you. For example, I like the truck I’m driving and got it because of the perceived value I think it has. Does the Mercedes buyer think about the price or is he just thinking about four wheels that he needs to get back-and-forth to work? Maybe only Hyundai driver thinks about price.

Here are a few ways that you can go after your customer by raising the perceived value your customer has of your company. Some of these are pretty simple and you may be doing some these right now. If you are great! But some of these you may have never even considered doing so pay attention, I will go to this list fairly quickly.

1. Makes sure your vehicle and your equipment are in pristine shape. Be clean and organized because you’re making an impression on your new clients and it needs to be a good one.

This list is not just one particular thing that will set you apart from your competition but a multitude of the things to do that will set you apart from your competition and that’s the goal…it’s to help separate yourself from everyone else.

2.Make sure that you, your technicians and your helpers are well groomed and well dressed.

3. Offer a courtesy calls if you’re running behind. This shows you are cognizant of your prospect or customer’s time, that it’s valuable and the only thing that cannot be replaced. Text them or call them to let them know you’re going to be running behind. Just as a courtesy to let them know that you are still coming… it shows you value their time.

4. I know this can be challenging for a lot of guys but it’s really, really important and it’s the one thing I need to work on more. Answering the phone when it rings and not let it go to voicemail whenever possible. People are calling for a reason and when they want to talk to you and they want to know about your services, it is much better that they get to talk to a real live person than a voicemail. I know that I’m working on this myself it’s THAT important.

Here is something that I heard the other day on someone’s voice mail and thought, “that’s clever”. Sometimes it is hard answer the phone especially if you’re an owner operator and you’ve got both hands busy in doing something. I heard a great voicemail the other day and this is basically what it said:

“Hey thanks for calling, if you reach this voicemail it’s because we’re on the phone helping another customer just like you. Please leave your name and number and if we don’t call you back in the next 10 minutes, we will give you $10 off your next service. Again, thanks for calling, just leave your name and phone number so we can give you a call back.

If by some chance you can’t get back to them in 10 minutes when you call back say, “Hey how are you? I am sorry I couldn’t get back to you in ten minutes so I will give you $10 when you hire us.

While this is a great incentive (for you and them), really answering the phone live does give you a higher perceived value in the marketplace.

5. Next, if you have a website for your business make sure as a modern look and feel to it. It’s your face in the marketplace. Remember more and more people are going to Internet to find service providers. If you don’t have a good presence and it looks like a cheap website, they will relate that feeling to your services and how you work. It may not really be who you are, but there again perception is everything.

6. Be aware of what people want If you are a painter it might be the new type of one coat paint or if you’re a plumber it might be a green water treatment system or maybe it’s using the new green cleaning products. Just be aware of what your customers want, research and find out how you can give those to your customer or make them available for them because today’s consumer is very well educated.

If you have any of these types of items available, put them in your marketing! It’s just one more thing to create a higher professional image a higher perceived value of your company.

7. Educate your prospects and your customers about all the service you provide and why they can trust you. The key is education. When you look at your marketing pieces, are you just throwing something out there like a flyer or are you offering something of value to them that will give them the information they need so they can make an intelligent decision.

The education process makes a huge difference in the response you get from the people that are calling in to find out about your services.

8. When you’re going into some one’s home always clean up after yourself, sweep, vacuum and put things away. Always make it better than when you got there.

9. Another important thing is to leave a sheet of some aftercare things that you might do. If you are a carpet cleaner you might leave sheet of paper of what to do within the next 24 hours or what the owner should on an ongoing basis to keep their carpets clean. If you are a pressure cleaner or roof cleaner like I am, I always leave a sheet behind that shows the homeowner what we’ve done and what they can do the next day to help preserve the life of their plants. Little things like that which no one else does set your company apart and are another thing that shows your professionalism.

10. Another thing you might consider that sets you apart from your competition and puts you out front as the leader in your marketplace is to have your workers wear booties.

11. Using drop clothes when you can. I’ll sometimes be painting and will run a drop cloth through the house to the place we are painting so that we are done we just roll up and clean up as we go.

These are just some little things that sets the bar high for the competition. What’s happening here is that the bar is so low that people aren’t expecting much and when you do anything over an above you can wow them by your service.

Then when it comes time to refer your company in the future, they will say that “Dave did an amazing job AND he cleaned up after himself. It amazed me that he actually wore booties and when he was done, he walked around asking if there was anything that needed to be moved or that was broken. These are just little, little things that most contractors don’t think about.

A common thread among many service providers is let’s get in, let’s get out, let’s get the money and we’re gone. You don’t build relationships that way.

Do follow up calls when you’re done cleaning if you haven’t had the option to walk around the house with the homeowner. Do follow up calls for your employees asking, “how did Sean do today? was he professional? did he clean up after himself and your things?” Doing things like this goes a long way to build that reputation of the higher price because you’re doing something that no one else does.

Another item you can do or that would add a tremendous value afterwards is to send a thank you card thanking them for doing business with us and letting them know we appreciate their business. I always send a thank you with a survey because I want to know what they thought. I send out the survey with a self-addressed stamped envelope so that we know exactly how we did including what we did wrong so that we can be better for the next time because we’re not perfect. We have bad days too, just like everyone else.

Take your client on a walk through showing them all the things that you’ve done whatever the service was. Maybe you point out we did this today.

For example, when I clean a roof I take the home owner and walk around the house. If they are cleaning it because they got a letter from the homeowners association, we take before and after pictures that we send to the HOA, proving that they got the roof cleaned and that the homeowners complied with the request. This is a big thing because I really don’t want to deal with the homeowners association myself and it is one thing less my customers have deal with. This is a HUGE added service that we do with a high perceived value…showing we did something extra.

The last thing is to offer a torn check guarantee. That you will be happy to tear up their check if they are unsatisfied with the job you did. We have never had to tear up a check! This works because a guarantee transfers all the risk to away from the customer.

These are just some things that will help you increase profits during your busy season. If you can get all this in place now, you just might now might just have your most profitable slow season ever.

If you would like the complete checklist, leave a comment below and I will send one out to you right away!

Check out this episode!

 

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