Talking to customers about prices
f you don’t have a simple differentiating
idea to drive your company, you’d better have a great
price! However bleak the economic conditions surrounding your
business may become, hope that you never get to the point where
the only benefit you have to sell is price.
“Your price is much to
high.”
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And, even though price resistance is a
common experience, many cleaners get flustered, upset, or even
argumentative when they meet it. Others agree that the price is
high but then complain that their profit is small or
non-existent anyway. Or, they warn the customer about the evils
of doing business with the lower-priced competition.
All of these responses are unproductive.
In fact, they alert the customer to inherent weaknesses in your
cleaning establishment and could cause them to trade elsewhere.
But giving ground or, worse, not
defending your price structure, isn’t necessary.
Why?
Because you can sell your services
— and at a fair price.
Think about it this way: If price were
the only consideration, there would be no competition.
Companies wouldn’t spend billions of dollars on
advertising and marketing to influence customers.
When dealing with a price objection, keep
these important points in mind:
Resistance is natural. Your customers
have a right to expect you to address objections straight on,
not to hear your own complaints about competition, or hemming
and hawing about the price.
Your customers may honestly feel that the
price is too high. Maybe they’re used to paying less at a
competitor. Maybe they only recently moved into your trade area
from another part of the country, where prices are less. Or it
may be a test to see whether you’ll offer to reduce your
price.
These concerns are all valid, and they
deserve to be addressed head on.
Price is only one factor in a buying
decision. Obviously the customer was not completely satisfied
with your competition. Otherwise, they would not be attempting
to do business with you.
Smart buyers do not purchase on the basis
of price alone. Convenience, quality of work, dependability,
and your company’s follow-through service are as
important, if not more, than price.
What you’re really selling is
value. Even if your cleaning is more expensive than what the
customer is used to paying, show why yours is a better value.
For example, point out your convenient
hours, that minor repairs are free, or the extra care with
which each garment is cleaned, pressed and packaged. Instead of
debating price, factor in what your value-added services would
cost if the customer had to pay for them separately.
Avoid a debate on the competition. At the
moment of truth, your competitors aren’t around to rebut
your statements, so why invite comparison? Instead speak
positively of the benefits and advantages of using you and your
company.
Remember, sometimes ac-ceptance takes
time. If the customer doesn’t buy what you’re
saying right away, be patient. Chances are they’ll be
back.
Nevertheless, you should know your
competition. The only way to know yourself and your position in
the marketplace is by continual study of the competition. If
the customer does bring up your competitors, make a quick
transition to the positive benefits of your own services. In
the end they’ll love you more.
High-end cleaners are in a very tough
position right now. They have to try to keep up their volume
while competitors are most likely cutting prices.
It’s a difficult situation to say
the least.
Let’s say your goal this year is to
increase profitability by 10 percent over last year. Your
objective is going to be more difficult then ever because of
the cut-rate environment of today’s market.
At a time when consumer spending is down
anyway, customers are likely to go with the cheapest solution
to their cleaning needs. You really have to prove to them that
your services, while they may be more expensive than your
competitors, will save them money in the end. Admittedly,
it’s a tough sell, especially right now.
The smartest plan to effectively battle
competitors that cut prices is to put as much daylight as
possible between yourself and the low-priced cleaners. Concede
the “price is everything” markets to the one-price
and low-price operators and concentrate on the more quality
conscious market segments.
Emphasize to customers that when they
trade with you, they get a quality service and peace of mind.
Sell your company’s reputation for quality and
reliability. By doing this, you will be able to leap over this
obstacle and watch your business grow.
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