Can a business improve its pricing performance? The short answer is yes — provided it approaches pricing in a structured way.
Now the premise that it may be time to rethink your pricing strategy assumes that you already have one in place. In fact, many field service businesses do not have a formal or defined strategy to begin with. Instead, employers look to the market and use a ‘best guess’ method to set costs.
The most common issue that comes from this method is setting prices too low. A new business may do this to win initial clients and to build up a strong customer base. The problem many owners then find themselves in is when the company fails to readjust the prices back up to market rates.
While you may continue to win new customers and be busier than ever, it’s simply not sustainable for the business.
It can be tough to pinpoint if pricing is your issue, so we’ve listed a few signs that indicate it might be time to rethink your pricing strategy.