As business owners, we’re always looking for ways to grow our profits. One of the most obvious ways to grow your profits is, of course, to raise your prices.
And while just about everyone in the home improvement industry is crazy busy right now, the problem is that many business owners aren’t pricing their jobs correctly. We’ve seen far too many contractors who price their jobs from a place of fear and misinformation rather than by design.
And it’s not possible to grow/scale your business without raising prices.
The most business-savvy and ethical way to raise your prices is to add value so your customer gets MORE for their money… and you end up with more profit to grow your contractor business.
Following are three ways to build value into your customer experience so you can sell at prices higher than your competition and still generate more leads for your contracting business through product, people, and processes.
1. Product: Close More Sales for Your Contracting Business. You’re probably selling a great product - most companies are. But have your reassessed your product selection recently? Meet with your suppliers and ask your sales team about the feedback they receive from your customers. Now is a great time to make sure you’re offering a first-class product.
And what’s even more important is how you’re presenting that product. Are you using the best sales materials so they’re presented in the best light to your prospects?
Take some time to ensure that all of the features and benefits of your products are communicated clearly to your prospects and that all of your salespeople are well-versed and well-trained on how to present them. The bottom line is that it doesn't matter if you have the best product in the industry if your customers don't know that.
2. People: How Your People Can Help You Close More Sales For Your Contractor Business. One of the best ways you can differentiate yourself from your competition is your people. Sure, your competitors might be selling the same type of products and services as you are, but they don’t have your expertly trained installers, friendly receptionist, detail-oriented project manager, etc.
If you’re feeling a bit unsure in this department, it might be time to make some changes. Appraise which of your team members are capable of elevating their level of service so you can charge higher prices.
For those who aren’t there yet, they may simply need some additional training while others may need to be replaced with a new team member. Those who build great organizations make sure they have the right people on the bus and the right people in the key seats before they figure out where to drive the bus.
In the end, your team can make or break a customer’s experience with your company, so you MUST make sure they’re highly trained and focused entirely on your customers.
3. Processes: These Processes Will Help Grow Your Contractor Business. The ultimate way to earn the right to charge higher prices is to build, implement, and quality-check your processes. From answering the phones, to the sales process, to installation and following up after the job is complete - all of these actions should follow a very comprehensive, highly engineered process.
To begin, travel through your business from start to finish in the shoes of your customer. Call your business, observe and/or participate in a sales presentation, a job installation and post-job follow-up. You can also ask past customers for their feedback and input. Where are there holes in your customer experience? Make sure that you are “WOWing” your customers every step of the process.
By increasing the value your customers receive, you will not only earn the right to increase your prices, but you will also earn customers for life. For more insights on how you can raise your prices and take your business to the next level, request a demo today.
For more information, watch our latest webinar: How to Sell at Prices Higher Than Your Competition
- FREE 10-Minute Discovery Call with gFour Marketing to find out if we can help you discover hidden profits in your business.
- Brian’s new book, The 7 Secrets To Becoming A Wealthy Contractor, is now available. Visit TheWealthyContractor.com for a free copy (just pay shipping).