How Much Is Too Much

[Ron Lippold]

When the look on their face,
































is




























like































are you really that much better






































I have had all the others out here and they suck

 

[Steve Toburen]

Hey Ron,

I assume your implied question (no question mark) was rhetorical in nature. But it brings up an interesting philosophical question, "at what point are we 'ripping off' the customer?"

Like many of you, I came from a middle class (well, actually lower class economically) background. And I found that the prices I charged my customers sometimes took my breath away.

So I developed a few "talking points' to help me get over my pricing fears/ ethical concerns:

1. "I am not my customer." What seemed like a LOT of money to me was pocket change to them. Plus what seemed like a minor thing to me was a MAJOR problem to the homeowner that they were willing to pay a LOT of money to resolve.

2. "It costs a LOT more to stay in business than I recognize." So true. work your numbers and you will be shocked. Most carpet cleaners don't and therefore stay "wage slaves" in their own business.

3. "There is no virtue in poverty." The only way I had to pull myself up by my boot straps was to charge more than a living wage which meant someone had to pay and pay a LOT. Who deserves the money more- my customer who has a LOT more than I or me? Given my background being raised in semi-poverty I had to convince myself that I deserved to be wealthy just as much as my customers. Sort of a Robin Hood philosophy!

4. "IF I do what I say I will while at the same time making the customer feel good about their buying decision then there is no amount that is 'too much'." We teach in SFS that customers will pay for only two things: SOLUTIONS and GOOD FEELINGS. If you give them both they will pay and happily pay a LOT.

After mulling these points around for a few years I came up with what I came to call my "Point of Pain" (POP) pricing philosophy. I first worked very hard to consistently deliver as many positive Moments of Truth as possible to each and every customer. Then I hopefully charged high enough that the customer would wince at the price and then say, "Well, they do say you are the best ..." Now all I had to do was deliver and everybody was happy and where is the sin in that?

My 20 cents (POP pricing!)

Steve Toburen CR
Director of Training
Jon-Don's Strategies for Success

PS No Special Report yet on setting your pricing but I am close to producing one. It is one of the biggest problems in our industry.

 

[Ron Lippold]

Thank you

Steve

Thank you

You made the point very nicely. I don't go after the people I know can't afford what I have to offer. I go after 940 people who live in 750'000 to 1,000,000. homes price and delivery for these is different than a mobile home. I WILL work in those conditions but I am still pricey.


thanks again Steve

 

[BRSUMMERVILLE]

Steve T.,

I think Chuck Violand beat you on the report with his article in Cleanfax. His section: Business Management. He called the article "Swarm Management"

It's a simple Magic Number - Business Model. Even I can understand it. I now know how much per hour I have to make to meet my goal. There's no guessing on the numbers I'm charging more and some strange reason customer are not complaining. Even if I'm a "Dry Foamer"

SFS,
Class of Sept. 04

Bob Rock

 

[Steve Toburen]

Good to hear from you, Bob. As a 2004 SFS attendee you're due to come back as an honored alumni.

I would never take anything away from Chuck Violand's skills with the numbers. That is why I hired him to teach our "financials and hiring" day at SFS.

However, my thrust is on beating the demons inside us that whisper not only that we will always be at most middle class but that even worse, we deserve nothing more.

Steve

PS "Swarm Management?" I'll have to check it out. I know chuck calls his SFS job costing system the "5 M's". The man does have a way with words ... and numbers!