Price Comparisons Can Be Dangerous

Price Comparisons Can Be Dangerous

I’m sure you’ve heard people talk about the dangers of comparing yourself to others.  This can play mental games with us. The proverbial keeping up with the Joneses… We celebrate, as a culture, uniqueness and creativity, and yet… there is an element of sheeple going around. When we get into business,  what do we do? Base our pricing on the pricing of other companies around us…. I have clients in a big town in the Rockies.  When I researched pet care facility pricing in this town, because I do ad hoc pricing studies, I found that almost 100% of the dog daycares were priced EXACTLY the same.  This is fascinating! I do understand the desire to not stand out too much, because I did the same thing when I first opened my doors. And maybe one of the reasons is to not offend other business owners who have been doing this longer than you. Maybe it’s because we don’t want people to say no to us, because we are too expensive. I’m not exactly sure what the reason is. It’s just something that is common in our industry. BUT. And it’s a BIG BUT. Hang in there with me. We are comparing OUR pricing to other companies who based their pricing on comparing to someone else… It’s a big circle of comparison… but based on what? It’s not necessarily based on value provided. Or based on an amount that will not only take care of expenses, but also give the owner a really nice life. It’s based on an underlying comparison of everyone UNDERVALUING their offerings. Is your pricing based on...
A Thought Exercise About Doubling Your Prices

A Thought Exercise About Doubling Your Prices

      It’s a thought exercise, the idea of doubling your prices, possibly losing clients, and still making more money. There is a reason that I put this thought out there. I’m not saying to go do this. I am asking you to think about this: if you doubled your prices, and lost 50% of your clients, why would you still make more money? At first glance, it seems like you’d make the same as before. But wait. When you have fewer clients to take care of, overhead goes down. Payroll- down. Utilities- likely down. Fixed costs stay the same, but the variables will go down. Cleaning/Feeding/Medical Supplies costs- down. So yes, it is possible, even likely, that if you were to DOUBLE your prices for your pet care services, and even if you lost HALF of your clients, you would make more money. And, speaking from experience, I bet you wouldn’t lose that many customers. What would your life gain, by having more money come in? What would you be able to provide for your clients, and yourself? Think about it.        ...