I recently had breakfast with two aspiring entrepreneurs. They want to start a pressure washing business.
At first, I was inclined to dissuade them from this business. Why? Because the barriers to entry are low and the competition is fierce. But these guys had done a bunch of research and had some pretty good marketing ideas. So I listened to what they had in mind.
But, their marketing plan ultimately was to compete on price. To do the work cheaper than their competitors. I told them that was a fools game and a race to the bottom is only won by bankruptcy.
A better solution for them will be to give their potential customers a real reason to choose them at a higher price point than their competition. This ability to charge more comes from giving the client something more than just the basic service or product. The client needs to have a reason to pay more. Being unique in a compelling way can be such a reason. We discussed a few ideas, like using only “green” cleaning chemicals, etc. But then I told them about the Marketing Power of a List.
What is this you ask?
Imagine a homeowner getting three bids for cleaning her house. One bid from you and two more from your competition. All three companies have similar equipment, insurance, offer free estimates, etc. What is the easiest way to differentiate your company from the other two? With a list of course.
Imagine during your conversation with the homeowner, you say something along the lines of “Ms Homeowner, I know there are a lot of folks out there that can clean your home. And it must be tough to decide between them. But I want to tell you why we are different and you can be the judge as to whether what makes us different is important to you”
You continue…”You see, we have a checklist called “The 21 Points of Clean”. It is a checklist we have developed that is exclusive to our company that guarantees your home will be cleaned thoroughly and safely. Each member of our team uses this checklist and when done, reviews it with you to make sure you are satisfied. It is your way of knowing that the job was done well and it is what makes us unique in this market.”
Of the three bids she received, provided you were in the ballpark on price, who do you think is going to get the business?
Now, in your business, can you think of a list you can create that can be wrapped in a compelling story to differentiate you in the eyes of potential customers? It doesn’t cost much (if anything) and it can make all the difference in the world.
