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TintDude

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Posts posted by TintDude

  1. 2 hours ago, Damien said:

    I’m starting my prices supper cheap.

     

    First of all don't do that. I had ChatGPT help me with this and it is spot on:

     

    While it may seem enticing to start a service business with prices significantly lower than the competition, there are several reasons why this approach may not be advisable in the long run. Here are some potential drawbacks:

     

    1 Quality perception: Customers often associate higher prices with better quality. By significantly undercutting the competition, you risk creating a perception that your services are of lower quality or that you are cutting corners to offer such low prices. This can make it difficult to build trust and establish a strong reputation in the market.

     

    2 Profitability challenges: Operating a business with very low prices can make it challenging to generate sufficient revenue and maintain profitability. If your prices are too low, you may struggle to cover your costs, invest in necessary resources, or sustain your business over time. This can lead to financial difficulties and potentially force you to increase prices later, which may alienate existing customers.

     

    3 Value proposition: Competing solely on price often reduces your value proposition to being the cheapest option in the market. This can attract price-sensitive customers who may not be loyal and are more likely to switch to a cheaper alternative. Building a sustainable business requires offering unique value, exceptional customer service, or specialized expertise, rather than relying solely on low prices.

     

    4 Undercutting your competition: By undercutting the competition significantly, you risk engaging in a price war that can be detrimental to all businesses involved. Competitors may respond by lowering their prices further, leading to diminishing profits for everyone. This scenario is not sustainable in the long term and can harm the entire industry.

     

    5 Perceived lack of expertise: Setting prices significantly lower than your competitors may give the impression that you lack experience, expertise, or confidence in your services. Customers may question why your prices are so much lower and whether you can deliver the same level of quality and results as your competitors.

     

    6 Difficulty raising prices: If you establish your business with significantly lower prices, it can be challenging to increase them in the future without facing resistance from existing customers. Once customers have become accustomed to your low prices, they may be reluctant to pay more, even if you have improved your service quality or expanded your offerings.

     

    7 Long-term sustainability: Building a sustainable business requires a solid financial foundation. Operating with prices significantly lower than the competition can make it difficult to invest in growth, retain talented employees, or weather economic downturns. It's essential to consider the long-term viability of your business model and ensure that it can adapt to changing market conditions.

     

    While pricing is an important factor in attracting customers, it is crucial to strike a balance between offering competitive prices and delivering value that justifies your rates. Competing solely on price may lead to short-term gains but can have negative consequences for the long-term success and sustainability of your business.

     

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    Now the next thing I would suggest is customer management.

     

    90% of your problems are going to come from customers who weren't prepared ahead of time what to expect.

     

    Print out a stack of these: https://www.tintdude.com/care.html/ and read it with and leave one with each customer before you begin the work, this will save you a lot of grief and you'll thank me later.

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