Steve Toburen
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- Oct 23, 2006
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- Steve Toburen
By happy coincidence my April "success on the Home Front" column (in Mikey's favorite industry trade magazine- ICS!) is focused on the new "value shopper" challenge. Here are the opening paragraphs:
"We might as well face up to it. Thanks to the current “Great Recession” Americans have become more frugal and “value conscious” than ever before. Sales of supposedly “recession proof” high end luxury goods and services have plummeted. You may be thinking, “Who cares? I’m selling carpet cleaning? You don’t get much more ‘anti-luxury’ than carpet cleaning!”
Well … yes and no. First of all, no matter what market you are targeting your customer views the cleaning of their carpet as “optional”. When your client has less money (Or even worse “feels poor” thanks to countless media stories on the recession!) then they cut back on their “discretionary spending” and yep- carpet cleaning will be one of the first things to go!
In recent years many carpet cleaners have targeted the high end, prestige carpet cleaning market and turned their noses up at the mass market, price oriented “price by the room” sector. (I too focused on the “snob market” and why not? Bigger homes with more carpet, more frequent cleanings, more money per square foot and a bigger job ticket! This approach worked great for me for twenty years!) But that was then and now is now ...
Simply put, “value” is now in and has even become chic. Bragging about or conspicuously showing off your extravagances has become a bit tacky and in poor taste. Instead, even among wealthy customers it is now fashionable to “shop for the good deal” and look for “value”.
So what does this new “chic frugality” mean for you and your carefully cultivated flock of high end ‘big spenders”? In the beginning maybe not much. My guess is you will keep most of your long time loyal clients through this period of “economic abstinence.” However, I’m hearing reports from our SFS members of eroding profits due to clients “stretching” their cleaning frequency or instead of cleaning all the carpets only doing the “open areas” or just a few rooms.
However, even the most stable company needs to keep growing due to customer attrition. Homeowners drift away, move out of your market area or even die on you! In the commercial sector businesses close, are taken over or go through a management change where the new broom of change sweeps away all the previous service providers- even when you were doing a superb job (Don’t ask me how I know this!)
So how can you attract this new breed of value conscious “price shopper” and yet still keep your pricing credibility (translated: no advertised discounting) with your previous clients that you have spent years “training” to accept your prestige pricing levels? (Life can be so complicated!) Also let’s not forget the most important question- How can you achieve all of the above AND still make a nice profit?""
Then I share 7 steps to winning over the "value" customer AND still making a profit. (I don't think Ev would like me to "out" the entire column here.)
I would suggest that those of you who have been "big ticket" cleaners working for "prestige" clients not overlook this "shopping for value" trend. Many experts say it is here to stay.
Island Boy
www.StrategiesForSuccess.com
PS Just to keep Chris happy I'll put up a Special Report. One way to work around the "value issue" is to come up with "win-win" deals where the client saves (or at least THINKS they are!) money and you still make a profit. A pre-paid carpet cleaning maintenance plan is one great way: http://www.strategiesforsuccess.com/932 ... -beautiful
The download is free and neither Jon-Don nor SFS will ever spam you.
"We might as well face up to it. Thanks to the current “Great Recession” Americans have become more frugal and “value conscious” than ever before. Sales of supposedly “recession proof” high end luxury goods and services have plummeted. You may be thinking, “Who cares? I’m selling carpet cleaning? You don’t get much more ‘anti-luxury’ than carpet cleaning!”
Well … yes and no. First of all, no matter what market you are targeting your customer views the cleaning of their carpet as “optional”. When your client has less money (Or even worse “feels poor” thanks to countless media stories on the recession!) then they cut back on their “discretionary spending” and yep- carpet cleaning will be one of the first things to go!
In recent years many carpet cleaners have targeted the high end, prestige carpet cleaning market and turned their noses up at the mass market, price oriented “price by the room” sector. (I too focused on the “snob market” and why not? Bigger homes with more carpet, more frequent cleanings, more money per square foot and a bigger job ticket! This approach worked great for me for twenty years!) But that was then and now is now ...
Simply put, “value” is now in and has even become chic. Bragging about or conspicuously showing off your extravagances has become a bit tacky and in poor taste. Instead, even among wealthy customers it is now fashionable to “shop for the good deal” and look for “value”.
So what does this new “chic frugality” mean for you and your carefully cultivated flock of high end ‘big spenders”? In the beginning maybe not much. My guess is you will keep most of your long time loyal clients through this period of “economic abstinence.” However, I’m hearing reports from our SFS members of eroding profits due to clients “stretching” their cleaning frequency or instead of cleaning all the carpets only doing the “open areas” or just a few rooms.
However, even the most stable company needs to keep growing due to customer attrition. Homeowners drift away, move out of your market area or even die on you! In the commercial sector businesses close, are taken over or go through a management change where the new broom of change sweeps away all the previous service providers- even when you were doing a superb job (Don’t ask me how I know this!)
So how can you attract this new breed of value conscious “price shopper” and yet still keep your pricing credibility (translated: no advertised discounting) with your previous clients that you have spent years “training” to accept your prestige pricing levels? (Life can be so complicated!) Also let’s not forget the most important question- How can you achieve all of the above AND still make a nice profit?""
Then I share 7 steps to winning over the "value" customer AND still making a profit. (I don't think Ev would like me to "out" the entire column here.)
I would suggest that those of you who have been "big ticket" cleaners working for "prestige" clients not overlook this "shopping for value" trend. Many experts say it is here to stay.
Island Boy
www.StrategiesForSuccess.com
PS Just to keep Chris happy I'll put up a Special Report. One way to work around the "value issue" is to come up with "win-win" deals where the client saves (or at least THINKS they are!) money and you still make a profit. A pre-paid carpet cleaning maintenance plan is one great way: http://www.strategiesforsuccess.com/932 ... -beautiful
The download is free and neither Jon-Don nor SFS will ever spam you.
