Keeping prices high comes with its own cost, says Ellen Rohr in Small Shop Talk
I gotta let off some steam. A friend of mine just called. He is a respected plumbing professional. His company has been in business for 24 years, passed on from grand-dad to dad to him. He learned the trade at his father's knee. But, his dad didn't know a lot about making money. In fact, until a few years ago, they were still using grand-dad's selling prices. And going broke.
So, my friend invested in his own business education. He went to seminars, joined progressive contractor groups and started crunching numbers. He raised his prices and gave his team of plumbers a hefty raise. He's spent a lot of time and energy learning about marketing. He learned how to communicate to customers why you are more expensive than other plumbers. He learned new ways to add value to the service call to make it a great deal for the customer. He has become a savvy businessman and marketer. And, he is the only contractor in his neighborhood to provide full insurance benefits and a company funded retirement package.