THERE ARE THREE PRIORITIES THAT YOU MUST KEEP IN MIND WHEN PRICING
CORE CONCEPT:
Attracting repeat clients to your company requires that your price must be an above average value for the dollar, especially if you are a start up company. Continuing to operate your service with that mission in mind will give you continued growth, increased profits and ease of management. The easier it is for a client to receive a quote the faster they can book and get on to something else in their busy lives. Everything in your company should be user friendly, especially for the industry educated repeat client. Your goal is a 90% close ratio. (That ratio is dependent upon a number of key factor influences along with this Key Factor.) Your prices must be attractive but not so low that your company is not viewed as a 'player'. To build a strong referral chain your pricing must be consistent. All of this must be done while turning a profit because if it doesn't make money it doesn't make sense.
RESOLUTION:
Call your competitors and get their prices. Price yourself in the middle. Think of something that will give you an edge above your competitors within the price you have set and add that to your services. Set time expectations for actual cleanings to make a profit and process train your cleaners to clean in that time frame. Set schedule of prices per home for repeat and one time clients. Prepare the presentation of your services.
IMPLEMENTATION:
Make a spreadsheet of at least 6 competitors names and phone numbers. Have other columns for answers you will receive from each company based on things like square footage of the home, frequency of visits, extra for pets, how do they handle periodic tasks, etc. Start timing yourself and/or your cleaners and determine how long it takes to clean a home. Figure out how much you want to charge per hour and multiply that times the time to clean the home and you have your price. It will take longer to clean less frequently so try and get some figures for those homes as well. Rags to Riches does have a pricing matrix utilizing the average time spent by a process trained team in a repeat and one time home based upon the guidelines presented in our video Pricing, Quoting and Selling. The time and money for any extras performed in a home must be added onto the time and money listed on our matrix except a periodic task performed at each visit starting at the second visit (as presented in our business model). Once you have established your prices, prepare and write down an organized and thorough presentation of your services. Give the exact same presentation each and every time you speak with a client. That will ensure that you control the sales call and not the high maintenance potential client that we sometimes embark upon. The sales script should include what you do and do not do in a home.
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Seminar Recording: ACCURATE PRICING, QUOTING AND SELLING OVER THE PHONE
PRICING AND LABOR MATRIX CALCULATOR
TELEPHONE SALES SCRIPT 1 AND 2
Sincerely,
Sharon Tinberg and Sharon Fliess
Rags to Riches Success Maid Easy |