Great topic! I have had this exact debate with a few of my peers. I despise "loss leader" sales. It's hard to break what people are used to, as proven by JC Penney years ago. But I've also found that simply being honest and upfront with theirs and our expectations, goes a long way. If you're willing to guarantee what you promise and stand by it, then price is typically not an issue to those that understand and appreciate the service. And of course proving the results makes all the difference.
I am in agreement. Although my business model is a little different than yours, my service call fee is a little bit higher than a number of other companies out there for the same reason as you mentioned in your video. I'm not trying to get everybody as a customer. Some of the other companies that are charging very low diagnostic fees will not even correctly diagnose the real problems with the system and will be quick to push a whole new system on a person.
First law of thermodynamics, "There's no such thing as a free lunch", thus you get what you pay for. The HVAC industry has become so predatory and many contractors will use the low introductory service fee to get in the door so they can rip you off. That's what you're competing against. I was in the business for over 30 years and it took me about 5 years to figure out what you said in this video. Unfortunately, when you're just getting started and don't have the reputation yet, you almost have to eat some crow from undesirable customers until you can build a good reputation and customer base. You can pick your friends, you can pick your nose, but sometimes you can't always pick your customers. Be grateful you've arrived at a place in your business that you can afford to turn away undesirable customers. Congratulations.
Great topic!
I have had this exact debate with a few of my peers.
I despise "loss leader" sales.
It's hard to break what people are used to, as proven by JC Penney years ago.
But I've also found that simply being honest and upfront with theirs and our expectations, goes a long way.
If you're willing to guarantee what you promise and stand by it, then price is typically not an issue to those that understand and appreciate the service.
And of course proving the results makes all the difference.
I am in agreement. Although my business model is a little different than yours, my service call fee is a little bit higher than a number of other companies out there for the same reason as you mentioned in your video. I'm not trying to get everybody as a customer. Some of the other companies that are charging very low diagnostic fees will not even correctly diagnose the real problems with the system and will be quick to push a whole new system on a person.
They view it as a sales call
First law of thermodynamics, "There's no such thing as a free lunch", thus you get what you pay for. The HVAC industry has become so predatory and many contractors will use the low introductory service fee to get in the door so they can rip you off. That's what you're competing against.
I was in the business for over 30 years and it took me about 5 years to figure out what you said in this video. Unfortunately, when you're just getting started and don't have the reputation yet, you almost have to eat some crow from undesirable customers until you can build a good reputation and customer base. You can pick your friends, you can pick your nose, but sometimes you can't always pick your customers. Be grateful you've arrived at a place in your business that you can afford to turn away undesirable customers. Congratulations.
Appreciate that!