Kenny Chapman: When price doesn't matter

Price is a topic everyone wants to discuss and everyone has an opinion about, and you are probably wondering why I am even implying there is a circumstance when price doesn’t matter. Before you start thinking I’m crazy, let me explain.

Pricing your services correctly is extremely important when it comes to profitability, but the way some owners (and managers and techs) view pricing is ridiculous. Yes, I said it. Some owners (and you might be one of them) are afraid to raise their prices even slightly out of fear all their clients will immediately flee and start doing business with the competition! This is crazy thinking.

I’ll tell you what’s really important: The value behind the price. This includes your overall level of client service, online reputation, professional training and the effective use of technology.

More than ever, people are expecting communications with your company to be quick, easy and efficient. Clients are used to getting electronic updates, confirmations and messages, having easy payment processing, etc.

I see companies all the time that aren’t as profitable as they should be because they are so focused on price that they aren’t focused enough on what they are actually providing for that price. Your clients and potential clients pay more for convenience, quality, professionalism, better communication, reputation, brand and ease of use every day. Why should our industry be any different?

Why should price be such a defining factor in the minds of owners, managers and technicians in our great industry? You can’t be more expensive than your competition, provide subpar client service and expect to stay in business. But you can be more expensive than your competition, provide a better experience and value and be a very successful company.

So, how do you go about providing more value in order to justify price?

Deliver the ultimate client experience

The best way to give the most value to your client is to make sure it’s all about them, more specifically, their needs and wants. Your team members need to really listen to clients and make it as much of a personalized experience as possible.

This comes in the form of asking great questions and going the extra mile whenever possible. A huge mistake I see salespeople and technicians make is failing to actually communicate the value they are providing.

For example, if a tech tightens a toilet seat, they need to let the client know they did it! Just because it’s easy to them doesn’t mean it’s insignificant to the client. Seriously, I cannot stress this point enough. Communicating the value you are providing does wonders for solidifying client loyalty and making price insignificant.

Creating a culture of service is something I always recommend, too, because this leads to a focus on value for clients. Celebrate when someone provides excellent client service and gets a glowing review. Share stories in meetings about going above and beyond for a client. Stress the importance of uncovering client needs and wants, and that your goal is not just about making a sale, it’s about making them happy (which typically leads to a larger sale, anyway). Funny how that works.

Provide professional sales training

I’m not just saying this because my company provides professional sales training as one of our offerings. I’m promoting sales training in general because most technicians do not see themselves as salespeople, instead getting into the home service industry because they are good at the technical aspect of the job.

Many never saw themselves as client service-driven individuals; they just knew they wanted to fix things for people and make a good living for themselves and their families. As a result, they haven’t invested in themselves as salespeople. They might’ve gotten advanced technical certifications, but never thought about getting any sort of client service/sales certifications.

This responsibility then falls on company owners and managers to give them the skills they need to represent the company well by connecting with clients and presenting themselves in a professional manner. Investing in training truly is a smart investment; if executed correctly, it provides massive return.

Additionally, don’t forget about your office team members. They are often undertrained, yet are usually the first contact point for a new client. Office staff need sales and client service training just as much as (if not more than) techs and field salespeople. Keep in mind if CSRs aren’t effective on the phone, your tech or salesperson might never get the chance to even talk to that client!

Stay current with technology

My wife and I recently hired an electrical company to install some new fixtures for our home, and they were great overall, until it came time to pay them. It took multiple calls back and forth just to give them our credit card number. They were unable to accept payment at time of service, and then didn’t answer their phone when we tried to call them to give them the credit card number, so we had to be sure to answer the phone when they called us back.

It should never be difficult for a client to give you money or communicate with you! This company probably had no idea that a seemingly small detail that could be taken care of with the use of better technology actually had a negative impact on our overall perception of their service and value.

Own your online reputation

You also need to make it as easy as possible for people to rave about you online. With technology comes the importance of your online reputation and positive reviews, which are gold when we talk about price mattering less.

Your potential clients want to know a company with good, honest people will be coming to their home, and there’s nothing better to create trust and value than solid third-party verification. People used to rely on friends, family and neighbors to recommend someone trustworthy. Now, they are consulting perfect strangers and valuing their opinions about your company. I’m not saying word-of-mouth is dead, obviously, but things have definitely changed in this realm! Reviews are “mass word-of-mouth,” truly.

Now, consider areas in your business where technology could provide your client with a better experience. Sometimes, it’s the use of newer software or simply taking a different approach to make some part of the service experience easier for your clients. If it’s easy for them, they’ll be a return client; if it was difficult for them, they’ll probably go elsewhere. Regardless, it’s not a matter of price; it’s a matter of ease.

People pay more for brands they like because of the perceived value. People pay more for expedited shipping because it’s convenient, easy and it meets their specific needs. People do business with people they know, like, trust and who provide the best service; when you get to this point, price doesn’t matter as much to a client.

Work on creating value for clients in these four areas, stop worrying about if your price is higher than your competitors, and focus on being the best company in your service area. When you do these things, price isn’t as important because people want to do business with you and your company — not because of your price — but because they know you are the best. That’s when price doesn’t matter.

As market conditions continue to shift, are you looking for a way to make your company’s bids stand out from the competition without compromising the job’s profitability?

During the webinar, Billy Stevens, owner of an $11 million Plumbing and HVAC company, will share how embracing change has played a role in his company’s success.