As a KEC business owner, you may be hesitant to raise your prices for fear of losing customers or being seen as greedy or simply just overpriced. However, raising your prices can be a smart and strategic move that can benefit your business in many ways.
1. Raising prices allows you to increase your profit margin. As your KEC business grows, so do your costs. You may have to pay more for labor, materials, rent, marketing, etc. If you keep your prices the same while your costs increase, your profit margin will shrink over time. By raising your prices, you can maintain or improve your profit margin and ensure the long-term sustainability of your business.
2. Raising prices allows you to top-grade your customers. Many KEC companies don’t realize that even if they lose clients by raising prices there can be a benefit to them. Assume you do 100 cleanings a month at $450 dollars for monthly revenue of $45,000. If you raised your price to $525 a cleaning you would only need about 86 monthly KEC cleaning to make the same monthly revenue and could afford to lose 14 monthly cleanings. By raising prices you can choose to stop working with certain customers that are tough to schedule, don’t pay on time or are always complaining and keep the customers that value what your KEC company does for them. You should also calculate how much money you will save by paying less hourly wages now that your crews will be cleaning 14 less jobs a month.
3. Raising prices allows you to add value or services. Another reason to raise your KEC prices is when you have improved or expanded your service offering. You may have added new benefits, options, guarantees, support, etc., that enhance the customer experience and satisfaction. In this case, raising your prices is justified by the increased value that you provide to your customers. You can also use this opportunity to communicate how these changes benefit them and why they are worth paying more for. An example of this would be utilizing My Tech Pix to start documenting your KEC cleaning in a very professional and detailed way that sets you apart from your competition.
Of course, raising your prices is not a decision to be taken lightly. You need to consider the impact it will have on your existing and potential customers as well as on your competitors. You also need to communicate clearly and effectively why you are raising your prices and how it benefits your customers. Here are some tips on how to raise your prices without losing customers:
- Explain how you have improved or will improve the quality of your goods or services.
- Provide ample notice and offer options for customers who may need more time to adjust.
- Before setting new prices for your services, research the market and see what other competitors are charging for similar services.
- Avoid underpricing yourself by charging too low compared to others.
- Find out what makes your services unique or superior to others and highlight those features in your marketing materials. These could be things such as how you deliver photo documentation, timely service, years of experience, or customer service.
Raising prices is a strategic decision that can help you scale and stabilize your KEC business in a competitive market. By following these tips above, you can overcome the fears of losing customers and enjoy the benefits of higher pricing.
