Should You Include Rates on Your Website?
She's smiling 'cause she knows you gave her a discount
In the Forum, Kev discusses his rationale for providing a price over the phone instead of your website. Adding to what he stated, the decision of whether to list your prices for computer repair services comes down to several factors:
- if your business has competitive pricing, then these rates should be displayed prominently in your advertising, getting the customer to commit to you and anchor toward your prices; the competition will seem expensive and the customer will make the decision based on your pricing advantage
- on the other hand, if your business provides services at above-average prices, the sale is harder to make - which is a good reason to take advantage of the phone call request for pricing to quickly demonstrate that you are a competent professional before providing pricing information
- you can convey trustworthiness to the customer through your communication before he makes up his mind about the value of your services; on the other hand, if you're not so good at speaking over the phone, you might want the customer to make his decision about using your services before speaking with you
- if your pricing is complex or changing, it is simpler to provide a quote over the phone than to attempt to include these prices on your site
Thanks, Kev for your contribution. Here's Kev's computer business.
How to Earn 25% More
As a computer repairman, you have two basic options: charge by the hour, or by the job (with a quote). I prefer the latter. When starting out, you'll have the advantage of flexible pricing to determine what is optimal your market.
Segment Your Market
Rather than choosing a fixed cost for the job, find some optional added value you can give to your customer (e.g. faster service). Then, when providing your quote over the phone, start high for the premium service. If the prospect objects ("that's too much", or "I don't need a 12-hr turnaround time"), then you've created the opportunity to offer a lower quote without making your pricing seem arbitrary. Offer a longer turnaround (or otherwise sub-premium service) for a reduce rate. Aside from using the anchoring principle to your advantage, you now have a legitimate reason to reduce your quote if the customer is not willing to pay for premium service, in effect saving the sale and making the job easier on yourself through your reduced service offering.
By segmenting your market, you create an offering that appeals to the higher-end audience while not eliminating budget-conscious prospects. Based on my own experience using this approach, earnings went up over 25% during the first month, compared with my previous approach (offering a single quote).
Example
*Phone Rings*
Customer: How much do you charge for computer repair?
You: The price depends on what you need repaired. What's wrong with your computer?
Customer: It's got a virus.
You: Sounds awful! If you need the computer back right away, we can remove the virus and have it back to you in 12 hours for $ABC.
Customer: Hmm, I don't really need it done that fast.
You: That's fine. We also offer 24 and 48 hour service options. You can get your computer back, virus-free in 48 hours for only $XYZ.
In the above conversation, it turns out that you offered something more than the customer needed. You then reduced your offering to meet her needs.
If she had a business computer and needed the faster turnaround time, she likely would have been willing to pay more.