As anyone in business knows, figuring out how much to charge for your product or service is one of the most difficult things to determine. On one hand, you want to make a ton of money as fast as you can. On the other, price is the main factor for the vast majority of customers. (I can boldly proclaim that because I speak with the confidence of ignorance. Speaking as a customer for a wide variety of products and services, however, I really don't care to listen to pitches about "value" when something is obviously more expensive than what I can find elsewhere. Sure, gold-plated salad tongs could be a valuable family heirloom for generations to come, but come on--who eats salad?)
A typical or "standard" move in my business is one truck-load of stuff transported less than ten miles, and ten miles is pushing it. For this, assuming that I can load everything by myself, I charge $95. Scratch that--I charged, past-tense, $95. This summer I made a good amount of cash starting at that point and going up depending on the loads and distances. But that was the heyday of the business thus far. Back then, people would gasp at what a good deal it was. That prompted me to nudge my prices higher and higher. I think I peaked at about $115 for the base rate, but after that, particularly toward the end of summer, people started giving me the boot.
I'm not back down to my low price of $75 for a standard move, and I've got to tell you, it's barely worth it. Sure, people feel like they're getting a good deal--and they are--and when they're prepared to pay more, they generally tip generously. But I'm not comfortable with that price. Especially when I'm lugging a soiled mattress down a grimy basement hallway to the loading dock. And yet, when I try to get back to that comfortable $95, people go shopping elsewhere.
It makes me wonder--just who the hell is doing this work for less than that?
Actually, I know, and I'll blog on that later. It's the cut-rate half-wits whose ads on Craigslist are pre-literate, at best. They use Gmail accounts and nearly promise to make your "wildest dreams come true."
So, the search continues.
Wholesaling REOs- Motivated Listings
5 years ago
2 comments:
Don't compete on price - it's a downward spiral. Differentiate based on Service Level (think Nordstrom). Convey that you are trustworthy, you show up on time, return phone calls, can be left alone with their belongings or their sister etc... - that will separate you from the crowd. If that doesn't work, let em' know you're packing heat :)
jimi
Thanks Jimmy. You're absolutely right as always.
Since my circumstances have recently changed (again, and more on that soon), I'll be working on an ad campaign that focuses on these things.
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