http://www.PestControlMarketingSystems.com – Pest Control Marketing Strategy Interview: “4 Pricing Mistakes Profit-Hungry Pest Control Operators Must Avoid”.
In this interview, Ryan Levesque (PCMS President & CEO), and Dr. Glenn Livingston (Marketing Psychologist featured in the NYTimes) reveal pricing mistakes nearly all local business owners make and how to avoid falling into the same traps.
Because here’s the thing:
It’s been said that on average, people spend more time shopping for a TV than they do figuring out where to invest their life savings.
But in life — and in business – it’s not uncommon for us to spend too much time focused on day-to-day minutia, and too little time answering the BIG questions that really matter.
Take the topic of pricing for instance.
When it comes to answering the question, “What should you be charging for your services?” most pest control operators spend too little time answering this strategically-important question.
And when they DO tackle the question, they typically rely on one of the following two “quick-and-dirty” approaches:
1. The Competitor-Focused Approach:
By far the most common pricing strategy I see PCOs use is to look at what their competition is charging, and price themselves slightly higher or lower, depending on whether they want to be positioned as the “premium” brand — or the “budget-friendly” brand.
2. The Markup-Focused Approach:
The second most common approach I see PCOs use is to look at their costs: chems, fuel, payroll, etc. and markup their service based on how much profit they want to make.
And the strategic planning usually stops there.
In fact, if you’re like most PCOs, then you probably priced your services using one or both of these approaches, started booking work, and moved on, right?
Well here’s the rub:
If you’ve relied on either these two pricing approaches mentioned above, then you’re potentially leaving BIG money on the table.
Because there are FOUR common pricing mistakes PCOs make, which once fixed — can literally add tens to hundreds of thousands of dollars to your bottom line.
This interview reveals what they are AND how to fix them one-by-one.