In a world full of service providers and people who provide tailor-made offerings and bespoke solutions, it is sometimes very difficult for many customers to enter into a buying discussion.
If you provide a service, as opposed to a range of products, it is likely you suffer from this same condition. As service providers, it is important that we think like retailers. If you owned a shop whose items had no prices shown, a browsing customer may assume that everything in the shop was expensive. But also you run the risk that they would not ask for assistance for fear of embarrassment.
As service providers, we must do all we can to make it easy for our potential customers to engage in conversation with us. Imagine yourself again as a retailer. Your aim is to encourage people into your store and increase footfall. Service-based industries have the same goal using 3 techniques:
1. Price Primers
Provide examples of a service that explains your total pricing strategy to customers. Major supermarket chains use value products to do this, and the automotive industry may use a range of cars. The process is to simply take a snapshot of one service and put a price on this, as it will educate your audience to your overall pricing strategy.
For example, I have recently assisted an accountancy practice to place fixed prices for their services and helped a cleaning company charge a fixed fee for a 3-room package. These uncomplicated, one-price offers allow people to decide whether or not they can afford you.
2. Bundled Offers
I will often work with clients to create collections of products and services that demonstrate great value. What could you bundle?
The idea of this process is to increase your average order value and introduce your clients to services that they would not normally choose.
When putting your bundle together, consider all that you can include, not only the tangible services or products, but also those which add value, such as customer care, service expectation, telephone and email support, all of which add substance. An example I recently influenced was a ‘business in a box’ concept for a local design business. This included the design and production of a full complement of stationery, a basic website and brand guidelines package aimed at new business start ups.
Most people are concerned less with an overall cost and more about
how much something will cost each month. As such, we can often align our offerings utilising this buying pattern.
Typically, if you can turn a large ‘pay in arrears’ product or service into a sustainable pay monthly option the results are increased profit, improved cash flow and maximum customer retention. If you are not offering your clients a packaged pay monthly service you may well be missing out on a massive opportunity.
Try packaging up your services and imagine making a display of products in a major retail store with your offering. You may just be overwhelmed by the results!