How Do You Raise Your Prices? | HVAC Pricing Series Part 12
We discussed in a previous article that raising your Prices is the easiest and best way to increase your Profit. And increasing your Profit will allow you to have a better, more professional company that remains solvent for years to come. But, most HVAC dealers are very afraid of raising their Prices because they feel they will not get any jobs they bid or they will price themselves out of the service market. So, how do you raise your Prices?
First and foremost, you must believe in your own mind that you CAN raise your Prices. You have to believe that you are worth the extra money you are asking your customers to pay. You can’t be afraid of your new prices. And here is why you should not be afraid: your customers don’t really know what the actual price should be for a service call or a replacement job. Chances are very high your customers will only replace one HVAC system in their lifetime or they will only replace one blower motor in the next 25 years. What your customers want is that the job will be done professionally, that their family will be safe, that they have chosen a reputable and fair company to perform the work, that the work will be performed properly, and that your company will be around to handle the warranty and to service the sale. Sure, they want the best price they can get, but they rarely want to sacrifice any of the items listed above in order to get the lowest price. So set your prices properly based on the financial needs of your company, your employees, your customers and yourself.
Next, don’t let your competitors determine your Prices. How can you possibly know if your competitors are losing or making money if they know how to properly price their jobs based on their financial needs, if their employees are happy, if their customers are happy, if they are going out of business next week because they are not charging enough? Your competitor’s prices have absolutely NOTHING to do with your Prices. Will they get some jobs because they are cheaper than you? Sure they will. And they would have gotten some of those jobs even if your Price had been lower than their price for lots of reasons you cannot control. Don’t let your competitors determine what is best for your company and what you should charge. Let your newly acquired financial common sense set your Prices.
Next, you must be proud of your Prices and proud of what you sell. Be enthusiastic about your company and how it goes to market. Tell your customers why your company is worth more than the other companies. Only you can communicate to your customers the benefits they will get by using your company. In another article from cfm, we tell you that no one cares about your company but you and that only you can tell your customers why they should buy from you. And why they should buy from you starts with the pride and enthusiasm the owner of the company has for his products and services. People prefer to buy from someone they enjoy being around and your pride and enthusiasm will be infectious for your customers.
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- How Do You Raise Your Prices? | HVAC Pricing Series Part 12 – November 25, 2019