Fix-it-Friday
Sharon Cowan, CBSE
Business Growth Consultant, SPEAKER, Author, Janitorial Business Specialist, Entrepreneur, Co-Host Polishing Profits Podcast
Here is this week's Fix-it-Friday:
A commercial client we have had for 6 years has received a proposal from another company for $2000 less a month than we are charging. There are no complaints about the work, but what can we do to save this client.
Dropping your price to meet competition without eliminating some tasks is never a good idea, even to keep the account. The customer can rightfully ask you “ if you can do it for $2000 less now, why didn’t you give me this price all along?: It puts you in a position of not being honest with the customers.
Instead of lowering the price without reducing the tasks, I suggest you offer special or preferred pricing on special services such as a 30% (or whatever % you choose) off price for one floor care service or a fixed lower price per sq foot on any floor care, or window cleaning or any other selected service you offer. This makes your overall price competitive while bringing value to your customer and not reducing your base price.
If you have built a relationship with this client over the years, this should be a non-issue or at the very least, you should have suspected it was coming. Proactive relationship building goes a long way toward keeping accounts when they go out to bid.
Have a great weekend.
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