Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: carpetguy on March 11, 2007, 07:38:06 pm
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Interesting program about what happened, when a business decided to adopt a survival strategy, following price resistance.
The price resistance was due to "more competetive" pricing, from a new player, with newer technology and better cost controls, but similar product.
What transpired, was a shock, but very pleasant surprise to the business principals. Their expectation and fear, was that trading would remain constant, having faith in their product range.
What actually happened, was an increase in sale value, as customers bought more.
The point being !!!!!!!!!!
Raising prices won't always make you more profitable and reducing them, along with being more efficient, " in all departments "might surprise you.
There's no BLACK and WHITE to guide you, so you need to consider the effect, your actions will have before making changes.
Controlling costs, being as efficient as possible, getting the maximum from your equipment and tools, focussing on profit, rather than turnover, delivering " value for money ", all of these are critical to success.
There have been a fair number of posts about Raising Prices and possibly the aim of the people advocating Higher Prices is to raise the status of c/c, or it might be to reduce competition, only each individual knows their reasons for posting.
Some businesses may be charging less, but, if they run a tight ship, be more profitable and actually get a higher ticket value, than another business who charges 50% more, because, and it happens all the time...........when completing a job, which the customer feels, is of a high standard and good value the customer will often ask about another carpet, or a suite, or whatever.
Not only that, you will be recommended to family and friends!!!!!!!!!!!