WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co
Options

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? 
· Share on FacebookShare on Twitter Share on Google+

Comments

  • Options
    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
    · Share on FacebookShare on Twitter Share on Google+
  • Options
    awc045awc045 subscriber Posts: 2
    LT - Thanks for the ideas and feedback.  I have some work to do now to round up prices.
    · Share on FacebookShare on Twitter Share on Google+
  • Options
    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
    · Share on FacebookShare on Twitter Share on Google+
Sign In or Register to comment.