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Sort out your Prices while Beating the Low Price Competitors

 

In this video I show you the Seven main ways to get your pricing right and still be able to beat that competitor with the lower price!

The first of those steps is to Acknowledge.

This means that whether something comes in by phone, email, messenger, letter, whatever it is, you have to acknowledge straight away that you actually received it, and so that person can then relax knowing that you actually got the message of their inquiry.

The second step is that you need to follow up fast. Now this might sound obvious, but most people do not follow up fast. And that is where you can use this opportunity to actually get in where others are failing. If you follow up fast, people will tend to trust you because they know you're actually going to turn up and communicate properly. People like that.

And even if you are more expensive, people just want to get that thing done. Whether it's a fault, whether it's a quote that they need, they just want to know right now, people are impatient. So, follow up fast and you will win a lot more work even if your competitors are cheaper.

The third thing is to speak their language and not yours. If you confuse you lose. So you don't want to be talking technical bubble, something that the customer understands is a lot better. So even if you don't like saying bulb, for instance, the customer calls it that and not a lamp, so talk their language and there'll be much more at ease with you. And you'll be much more likely to convert that inquiry into a job. When it comes to pricing, I actually have a series of spreadsheets within the membership site, which goes into a lot of detail on how to actually start with your personal needs and work back to getting your hourly rate.

So when it comes to your personal needs, you need to look at your essentials, your nice to haves, and your luxuries. If you're starting out you probably won't want to factor in luxuries just yet, but you need to start with what you want to get out of it and then look at the business needs next. And so on to the business needs, once you know what your personal needs are, what you want to pay yourself in other words, and then you look at all of the overheads, all of the fixed costs, and all of the job related costs, then you can work out exactly where you need to be when you add in VAT tax corporation tax, all these things to get to what your real picture is.

Now I'll come on to why this is important in the last step. So hold on!

And then the really important part is, once you know what your business needs are that also provide your personal needs, you can reverse engineer all of that over the number of days, weeks, that you want to work in a year and the hours that you want to work in a week, so that you can come out with your hourly rate. And once you come up with your hourly rate, you absolutely must stick to it. And the steps before this, and the one I'm about to come to will help to make sure that you actually get work at that rate.

Before I get to that last step, how do I know that this actually works? ...

Well, I've been an electrician since 1988, but I've had my business now since 2007, which was just before the first recession in 2008. I've been trying different things with my business and I actually charge more than a lot of my competitors, but I fill my diary.

A lot of my work converts, and there's a particular way that I apply all of these steps that I've mentioned and the one to come, that makes sure that I convert really, really well and get reviews and get referrals. And all of this is covered in the Electrical Business Community membership site, which has over 200 videos on how to set things up, all of the different concepts on what you should be doing. All of the email templates, all of the things you need to set up step by step with all of the applications you need, discounts on those apps and how to do it free or inexpensive.

And so, the final step. It's okay having all of this in place, but how would you actually get people to see you? Well, you've got to be the first person that people think of when they need an electrician when their friends want an electrician.

If it comes up that someone's got a problem, someone's got a fault, someone needs some new work doing, your name should be the first one that rolls off people's tongue.

Now everyone is on their phone all of the time, it's an attachment of their arm now, and that is the place to get them.

But there's some ways that just don't work because everyone's doing it. You also have to learn what's effective and what isn't, and you need to be consistent on there with both your branding and how you show up. And so, you are educating people on these platforms. You're educating them that you know what you're doing. You're reminding them of who you are. Your name is going into their head every time they see something from you.

And that is the essential step, combined with all of the previous steps before, of how you get your price and you convert more than your customers even if they're cheaper.

If you've got any questions at all, go to the Electrical Business Community Facebook group, and pop your question in there.

I've also got a free guide which you should see somewhere on this page. It details the steps needed to run a successful electrical business.

Simon Barker

Electrical Business Community

P.S. Take advantage of the 30 day Membership Trial. Find out more HERE.

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