As a business coach, there are few things as frustrating and saddening to hear as a business owner lowering his prices to try and compete with other businesses that really don’t draw a comparison.
Imagine if Mercedes said, “We have to cut our price in half.” When asked why, they respond “Because of Suzuki.”
Own Your Value and Branding
At Chem-Dry, we (should) know and recognize that we’re the “Mercedes” of carpet, upholstery, rug, and tile cleaning services. We do it better than anyone else and we have the numbers to prove it. We’re better for the environment. We’re safer for the customer’s home. We do things that nobody else can. If you have a corner on the “healthier” option in the market, why would you charge the same price as everyone else?
I face this conundrum every time I go shopping. When my wife and I walk through the produce section, we debate between buying the “organic” options or the regular variety that’s cheaper.
Out of curiosity, I approached the produce manager at the store and asked how well the organic stuff sells. His response was surprising. He said that the higher price doesn’t deter many people. In fact, because the produce usually looks and feels riper, customers give it a shot and usually come back to get it because they notice a better taste and are willing to pay the price. They’re more satisfied with what they’re buying.
How Do You Advertise Value?
This is actually far easier than most people think it is. When it comes to value, you can offer your customers SO much more than your price-centered competition. Think of what things (beyond price) are important to your customer. Things like:
- Dries faster
- Healthier overall
- Green Certified
- Stays cleaner longer
- Complete Odor removal
- Less moisture used
- Highly trained technicians
- Locally/Independently owned and operated
- Industry leading products, equipment, & technology
- 5-star rated (reviews)
These qualities are just the tip of the iceberg. Many of them are “intangibles” that help your customer feel better about hiring you – and why shouldn’t they?! Advertising on price doesn’t set you apart from your competition – it pairs you with them.
What Would Scott Do?
I would use every tool in my arsenal to set myself apart from my competition when I’m advertising – especially in places where they’re just as likely to be seen: PPC, social media, Val-Pak, phone books, etc. Use what the brand gives you – power!.
A couple highlights for PPC to talk to your vendor about:
- Use “callout” extensions that allow you to add supplemental information to your ad like “Dries in 1-2 hours, not days.”
- Use “review” extensions that let you show a star rating and a quote from a 3rd-party source (i.e. Customer Lobby, etc.).
With other mediums, try advertising things like “free gift of service” that isn’t a discount, but rather a toss-in for booking a job. For example, “$25 of free cleaning for every $100 you spend.” For digital platforms, make sure you use things like videos from ChemDry.com that quickly communicate the benefits of choosing you.
Your business offers more value than your competition does. Don’t squander it by trying to compete with them on price!
- Be a Mercedes, not a Suzuki. Offer a better experience at a valuable price.
- Start with the list I showed you and write down what you can offer your customers that your competition can’t. Use those things in your marketing.
- Talk to your print, PPC, or social media vendors about what you can use to target customers based on value.