One of the most obvious ways to grow your profits is to raise your prices.
However, if you simply raise your prices without adding value, you’re not only cheating your customers, you’re ruining your reputation.
Therefore, the most ethical and business-savvy way to raise your prices is to add value so your customer gets MORE for their money… while you end up with more profit to grow your contractor business.
Check out the following 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.
Product: Close More Sales for Your Contracting Business
You’re likely selling a great product – most companies are. But have your reevaluated your product selection recently? Meet with suppliers and ask your sales team about the feedback they receive from customers. Now is a great time to make sure you’re offering a premium product.
And what’s more important – how are you presenting that product? Do you have the best sales materials so they’re presented in the best light to your prospective customers? Ensure that all of the features and benefits of your products are clearly communicated to your potential customers and that all of your salespeople are well-trained and well-versed on how to present them. After all, it doesn’t matter if you have the best product in the industry if your customers don’t know that.
How Your People Can Help You Close more sales for your Contractor Business
One of the greatest ways in which you can differentiate yourself from your competition is your people. Sure, your competition might be selling the same kind of roof/bathroom/kitchen materials as you, but they don’t have your friendly receptionist, your detail-oriented project manager, your expertly-trained installers, etc.
If you’re feeling a little inadequate in this department, it might be time to make some changes. Evaluate 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; others may need to be replaced with a new team member. 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 customer-focused.
Processes to 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 detailed, highly engineered process.
To get started, go through your business from start to finish as if you were the customer. Call in, 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. Where are there holes in your customer experience? Make sure that you are “wowing” your customers every step of the way.
By increasing the value your customers receive, you will not only earn the right to increase your prices, you will earn customers for life™. For more insights on how to take your business to the next level, click here to request your free, no-obligation strategy session with our team today.