1. You can only charge what the market will bear.
If you like to go to Starbucks and spend $5 for a cup of coffee, then so be it. If you want to go to WAWA and spend $1 for a cup, same thing. Now, if that is what your target customer is, then you just limited yourself.
Count how many people go into Starbucks and get coffee, and then count how many people buy coffee at WAWA.
Same thing apllies to our trade, if you are marketing the "high end" people who spend $5 for a cup of coffee, then you have a given pool to work from, if you market the conservative people like the ones from WAWA, you have a much bigger pool to work with.
Basically, it depends what your niche is.
The WAWA people look for quality at a fair price, the Starbucks look for quality at any price. The WAWA people are willing to sacrifice a little quality for a better price. The Starbucks are willing to pay a premium for quaility.
The resi end of the trade is tough, you have all kinds of EC out there, from the rip offs to the hackers, to the guy that does a great job at a fair price.
Same thing on the Commercial and Industrial end, however, these guys get weeded out alot faster.
Most customer's want 3 things.
1. Their headache or need to go away.
2. Fair and resonable price.
3. It works.
By knowing what your competition charges, that will help you figure out what you can charge.
If you know your competition charges $4,000 for a 200 amp upgrade, you do the same thing for $3000. A 200a upgrade is a 200a upgrade.
Now use that to your advantage, advertise that you are 25% cheaper than them. Prove it to them. You have the same professionalism, you are just cheaper.
Now use that 4000 X Starbucks theory, and the 3000 X WAWA customer base, and where will you make more money?
Quanity + Quality= Success
Dnk......
[This message has been edited by Dnkldorf (edited 04-24-2005).]
