How much do you charge for your services?
It is a question every business owner struggles to answer and a quota corporate managers wrestle to maintain in a world of very tight margins. Do you compete based on economies of scale, or do you specialize in a more customized boutique business where quality is valued over cost? Making this decision is a bigger challenge than ever.
Brian Montgomery, founder of healthcare technology service company, Crest Services, has an interesting perspective on pricing. In his youth, he mowed lawns, and he never once set a price. Instead he asked customers to pay what they thought his service was worth. You would think this would negate his income, but instead, he was handsomely rewarded for his efforts. What he learned from that experience forms the foundational values he maintains to this day in his business.
Here are Brian’s Pricing Secrets
- Focus on the work, not the payout. “Pay me what it’s worth,” was his creed, and it worked.
- Do business on a handshake. These days, formal agreements are a requirement, but Brian still places value on a handshake. He firmly believes your word is your bond, and though you may have the agreement in hand, the handshake is still the commitment that matters.
- Treat customers well. Talk to them. Brian spent just as much – or more – time talking with his customers than it took to mow their lawns. He listened to the widow ladies – he showed compassion. In a recent survey conducted by a world-renowned company, the biggest value by far in customer service – even in this era of technology – was still the personal connection.
The fact is, if you focus on doing the best work possible, stay true to your commitments, and make your customers feel they are truly valued, the income will come. —- Rise Performance Group honors leaders and shares their wisdom. As John Maxwell says, “A leader is one who knows the way, goes the way, and shows the way.” Brian Montgomery has done just that. Nominate a leader so we can recognize them. Remember leadership can come from anywhere in an organization, including the very bottom of the org chart. Contact Bob Kaplitz with your nomination at email@example.com. We’d love to tell their leadership story. Are you growing your business by developing the leadership qualities of your team or yourself? Contact Mark Fenner at firstname.lastname@example.org or 469-293-6198 to learn how leadership training can improve your bottom and top lines.