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Rates too low?

awc045awc045 subscriber Posts: 2
edited December 2007 in Customer Service and Customer Experience
I recently started a computer repair & service business, ACE Computer Services (http://www.acecomputernj.com</A>). 
In starting my business, ACE Computer Services (http://www.acecomputernj.com</A>) I wanted to provide affordable services.  That was one of the motivating factors in starting this venture.  I also wanted my service rates to be clear and easy to find on the website, which would be my "store".  I get a lot of calls and questions about the rate - most people cannot believe I am that much lower than other computer repair/service options.
 
I cannot help but wonder if I am losing business because my rate is low.  I know that sounds crazy but I receive a lot more traffic to my website than business generated, so something is not adding up.  Any thoughts? 
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Comments

  • LtresselLtressel subscriber Posts: 3
    Hi Andrew-Congratulations on your new venture.  I tried looking for a physical address and I guess that`s what you meant by "my store" is you are "virtual." You may want to put that in as a benefit.  You can use it as a reason why you can charge lower rates.You should also probably call your competitors and compare their rates to yours. This way you can charge maybe 10-20 percent below your competitors. Sometimes there`s a certain price different industries conform to.  If you go way too low they might think your service is fishy.  Customers are happy to save anywhere from $5-$10 or certain percentage discounts.  When it gets way below a certain price they`re accustomed to-they get spooked.Once you have adjusted your price some you can probably convert your traffic into real sales by offering them a coupon or perhaps you can upgrade your website to an instant 5 minute free consultation.  This way you can gain their trust straight away.Just some things to consider.LT
    Ltressel2007-9-13 10:54:29
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  • awc045awc045 subscriber Posts: 2
    LT - Thanks for the ideas and feedback.  I have some work to do now to round up prices.
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  • DoozerDoozer subscriber Posts: 3
    Read this book, it will change the way you look at pricing any product.

    http://www.pricingforprofit.com/art-of- ... ricing.php

    Rich
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