As 2024 dawns, it brings a unique set of challenges for cleaning business owners and decision-makers. Inflation is rising, costs are climbing, and interest rates threaten keep rising. The choices you make today will make or break the success of your business tomorrow.
The storms of economic change
In these turbulent economic times, every decision weighs heavier than ever.
The cost of supplies, labour, and operations aren’t just numbers on a page – they’re the lifeblood of your business. With the market’s unpredictability, the “race to the bottom”, and dodgy operators, it’s like driving blindfolded on a dangerous mountain pass during a thunderstorm.
Each critical decision, from finding cash to pay wages, to covering ever increasing interest rates, feels like high stakes turn along a perilous cliff’s edge, where one misstep could lead to a disastrous freefall into the economic abyss.
Charting a course of brilliance
As costs rise and cash gets tighter, pricing becomes a critical but often disregarded tool not just to survive, but to beat your competition. All too often I hear things like “I have to drop my prices, or I won’t win business”, or “I can’t compete with X they have more scale and/or lower costs”.
The argument around price is just not true. The truth is people don’t buy price; they buy value.
We’ve proved this time and time again with clients and I’ll show you how you can do it too.
It’s not about setting prices; it’s about understanding customers’ needs and creating highly valuable service packages that deliver quality and create trust.
Tackling the big questions
What do your customers value? Maybe it’s your eco-friendly products or your lightning-fast response times. Start today by simply asking your five best customers what they value most about your service – their insights could be the key to your next big win.
What’s your cost story? Dive into your expenses. Understand every dollar spent, from supplies to staff wages. It’s not about cutting corners; it’s about smart spending.
How do your stand out? In a sea of competitors, what are they doing differently to you? Don’t copy but understand what you can do differently so shine above the competition.
Getting a fresh perspective
Sometimes, gaining this insight means seeking viewpoints from outside your immediate circle. Engaging with someone completely removed from your business can offer a fresh, unbiased perspective on your pricing and service value.
This isn’t about questioning your expertise; it’s about enriching it with diverse viewpoints from experienced people that can bring ideas from outside your business, or even your industry.
Three key actions for unmatched success
- Give customers a choice: Present your services as a range of compelling choices. From essential to premium, let each option speak to different customer needs, adding depth and breadth to your business.
- Refine and elevate your value pricing strategy: Ground your pricing in a deep understanding of your costs and customer value. Ensure it reflects the exceptional service you provide.
- Outsmart your competition: Stay informed about the market and your competitors. Use this knowledge to innovate and offer services that set you apart.
The dawn of a new era
All too often business owners and leaders are afraid of pricing, the uncertainty it brings, and the fear of losing customers. Once you have the facts around costs and why customers buy from you, it becomes much easier. Don’t raise prices, come up with entirely new customer-value rich offerings that your ideal customers can’t resist. Our clients have used this exact method to achieve an average 2.29 times more profit with some as high as five or even eight times more profit.
Anthony of Need-A-Skip-Now says,
“I thought it was just about having the lowest price. I was wrong. By focusing on customer-value pricing, we went from just surviving in a very competitive market, to making 5 times more profit in just one year.”
Survival is not enough: By embracing these strategies, you’ll not only survive the turmoil but will rise as a legend in the cleaning industry, inspiring others and carve a legacy that transcends the ordinary.
Author: Brad Horan from Lucrature.com
Brad is a business growth consultant and has been helping businesses grow for more than 25 years.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editor@incleanmag.com.au
Sign up to INCLEAN’s newsletter.
