When running a business, be it a cleaning business like a blood spill cleanup service or a retail business like a chain of supermarkets, companies and individual entrepreneurs can make strategic mistakes. The cost of these mistakes may be high – dissatisfied customers, no orders, and consequently, low-profit margins.
What caused failures in determining the cost of cleaning services like blood spill clean-up service?
- There is no single pricing standard.
- “Intangible” cleaning services are difficult to account for, control, and evaluate.
- Wide variety of services, and service packages are offered for different clients.
- Lack of knowledge in the field of pricing rules in business.
What determines the prices for cleaning services?
Modern cleaning companies providing blood spill cleanup service or water damage services, working on the formation of prices for servicing different clients, take into account the following parameters:
- method of providing services (permanent services or one-time services);
- type of work performed (cleaning an apartment or office, garbage collection, dry cleaning of curtains, disinfection, blood spill cleanup, etc.);
- company costs (staff salaries, purchase of cleaning products, transport, etc.);
- purchase of new cleaning equipment;
- unforeseen expenses, etc.
If we consider errors in determining the price of goods and services of representatives of any cleaning business, for example, blood spill cleanup service, we can see a close relationship between pricing in cleaning and general trends.
Mistake 1. No balance between prices and expenses
Based on the dependence of the price of services on expenses, a cleaning company may overestimate or underestimate the cost of its services. When the price rises, the number of orders decreases, when the price drops, the company does not pay back its costs.
Mistake 2. Trying to get the same income from different services or packages
In pursuit of profit, cleaners often forget about the different statuses of clients, and about different ideas about the value of a particular service. It is important to remember that the main thing is to convince the client to pay for the product that is of interest to him or her. The price range is an important condition for a successful cleaning business.
Mistake 3. Failure to provide services to different target audiences
A cleaning company must be able to adapt to the needs and capabilities of different consumer segments.
Mistake 4. Offering the cheapest services to customers, a noticeable price reduction, or knocking down the price for the client
Mistake 5. Careless pricing management
Often the desire to increase the number of orders and reduce costs is considered the only way to increase profitability. Meanwhile, a representative of a cleaning company must have deep knowledge of pricing methods so that the price set for the service matches the client’s idea of the service as much as possible.
Mistake 6. Not knowing your customers
It is important to determine the prospects for cooperation with each customer, which will make it possible to provide high-quality services to those who will bring great profit to the company.
A successful price strategy is a strong competitive advantage for the company. Correcting pricing errors means attracting a lot of loyal customers.