No better way to make the phone ring in February..

Mikey P

Administrator
Joined
Oct 6, 2006
Messages
115,290
Location
The High Chapperal
Saw this on mmy FB page.
Good fun and always good for atleast 15K in work each year


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Joined
Jun 20, 2016
Messages
6,476
Location
Bc
Name
Jeff T
There’s a local guy around here that’s running 25% off all services, AND free protector on all soft surfaces cleaned, as a combined incentive.
In other words, he’s working for free!!!!
 

Jim Pemberton

MB Exclusive.
Joined
Oct 7, 2006
Messages
12,487
Name
Jim Pemberton
There’s a local guy around here that’s running 25% off all services, AND free protector on all soft surfaces cleaned, as a combined incentive.
In other words, he’s working for free!!!!

Two thoughts:

1. Discounts can be deceptive, as the “list price” can be artificially inflated. Free protector can be water or “in the cleaner”. Unethical competition is frustrating, but ultimately it catches up with them, especially in the social media world.

2. Legitimate discounts and giving away high value, expensive treatments: Losing money to increase volume is sadly a more common practice. In times where the weather is uncomfortable and freeze damage possible, it is better to go broke staying home than lose even more money in extra costs, damage to equipment, and perhaps traffic collisions in severe weather.

When determining prices, it can help to look at annual costs, and what price you need to charge to cover those costs in a 9 month season instead of giving away work below cost during slow times.
 
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