to your competitor’s service. This may require phone calls and secret shopping to get accurate data. With this knowledge you can estimate what you expect to sell for the year, perhaps by the number of labor hours or total square footage, and divide that by the number of units to get the service price. The focus needs to be coming up with the right pricing strategy and model that is more about customers than competitors. A successful approach is based on the needs and wants of your customers; not merely a reaction to your competitors’ prices. and make your choice carefully. There are other reasons why your custom-ers choose to work with you besides price. Focus on the value of the service your business provides and your customers will be loyal to you. Your business will continue on a profitable path as well. CM Jim Peduto is the president of Matrix Integrated Facility Management and the co-founder of the American Institute for Cleaning Sciences, an independent third-party accreditation organiza-tion that establishes standards to improve the professional performance of the cleaning indus-try. Matrix Integrated Facility Management recently received the Building Service Contractor Association’s (BCSAI) Safety Award. Driving Differentiation It will be easier to stand by your pricing when your customers see the value that your busi-ness and service brings beyond price. It is important for cleaning businesses to build brands and service models that speak directly to customers. Businesses can work to stand apart from competitors in various ways. Highlight a niche or a specialty service. If you “own” a market, you have more room to set prices. If you are the only contractor who holds a certain certification (such as CIMS) or offers a specialty cleaning service, you will have fewer competitors who can meet what you offer . Work smarter, not for less. Improve profits through innovative prac-tices. Use smarter, more efficient cleaning pro-cesses and technology to increase perfor-mance and value . Focus on value, not on price. Deliver a quality cleaning service. Follow the principles of CIMS to ensure your operation is well-managed and focused on performance excellence and service. These are competitive advantages that customers will recognize and will allow you to justify higher prices. Build loyalty to you, not to your price. Even if you use special discounts or intro-ductory offers to initially attract customers, immediately go to work developing a rela-tionship that keeps customers around when your prices goes up. The next time you feel the push to slash your prices, remember your pricing strategy A Training com IAQ Training Institute LLC The Voice of the IAQ Industry FREE INFO: Reader Service 252 or CMMOnline.com/freeinfo www.cmmonline.com 55
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