Pricing Pitfalls #6

Small business pricing strategies with expert Per Sjofors.

Pumper: Are there ways pumpers can charge higher prices than their competitors?

Sjofors: Differentiation is very important. As an example, in Atlanta, Ga., we worked with an exterminator that services restaurants. In the extermination industry, the service has become just as much a commodity as pumping septic tanks.

This particular exterminator differentiated himself by promising to completely eliminate bugs with technology that isn’t poisonous, not just control them. He guaranteed that if customers found a bug in their restaurant, they could call him 24 hours a day and he’d come out and eliminate the bugs. The end result? He found he could charge a rate 10 times higher than before.

Coming Friday:

How can pumpers figure out how to differentiate themselves?



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