When you have a commercial cleaning business during these recession times, you need to take time to decide if it is a smart decision to start undercutting cleaning prices.
This may not be the smart decision for your business, but until you take time to determine if it is or not, you won't know.
There are some important factors that need to be considered before making the final decision.
Don't just start cutting your prices because other businesses or commercial cleaning businesses are.
It is imperative to be sure it is the right decision for your particular business.
Here are the important factors to consider to help you determine if undercutting prices is a smart business decision.
1.
One principle that will help you determine this is one that applies to everyone; you need to understand how your customer's decision making processes have changed during the recession.
Try and put yourself in their shoes and ask yourself what you would do in their shoes.
If you don't, then you could end up losing customers and money.
2.
It is also vital to consider the state of your commercial cleaning business and the cleaning market.
Are you a cost leader in the cleaning market? Can your business afford to offer a lower price or do you need to go for a value strategy.
3.
Costs - If you already have a favorable cost structure, you may not want to undercut prices.
Take time to research and find out what other commercial cleaning businesses in the market are doing.
This will give you some idea of where your costs currently stand compared to what the undercut prices are.
If your prices are already reasonable and fair, then sticking with them may be your best choice, but research will be needed to make the final decision.
4.
Your business brand - If you are a commercial cleaning business that is already well recognized, then undercutting your prices may be wrong for you because people will start to expect lower prices all the time.
Instead of doing this, offer freebies and provide more value for all your cleaning customers.
If your brand is not as well known as others, then again, research will be needed to determine if undercutting is a good idea or not.
Don't cut prices too easily without first considering everything because if you do, then you can very easily damage your business brand.
5.
Customer's needs - Make sure that you are covering all of your customers needs.
If you need to, instead of undercutting prices for all your commercial cleaning services, offer special packages for a discounted price, plus your normal packages.
Undercutting cleaning prices may be a good idea for your commercial cleaning business or it may not be.
Only you can determine if your prices need to be lower during recession in order for your business to survive.
Do your homework, keep these factors in mind and make your decision carefully.
Don't rush into anything without first making sure it is a smart business decision.
This may not be the smart decision for your business, but until you take time to determine if it is or not, you won't know.
There are some important factors that need to be considered before making the final decision.
Don't just start cutting your prices because other businesses or commercial cleaning businesses are.
It is imperative to be sure it is the right decision for your particular business.
Here are the important factors to consider to help you determine if undercutting prices is a smart business decision.
1.
One principle that will help you determine this is one that applies to everyone; you need to understand how your customer's decision making processes have changed during the recession.
Try and put yourself in their shoes and ask yourself what you would do in their shoes.
If you don't, then you could end up losing customers and money.
2.
It is also vital to consider the state of your commercial cleaning business and the cleaning market.
Are you a cost leader in the cleaning market? Can your business afford to offer a lower price or do you need to go for a value strategy.
3.
Costs - If you already have a favorable cost structure, you may not want to undercut prices.
Take time to research and find out what other commercial cleaning businesses in the market are doing.
This will give you some idea of where your costs currently stand compared to what the undercut prices are.
If your prices are already reasonable and fair, then sticking with them may be your best choice, but research will be needed to make the final decision.
4.
Your business brand - If you are a commercial cleaning business that is already well recognized, then undercutting your prices may be wrong for you because people will start to expect lower prices all the time.
Instead of doing this, offer freebies and provide more value for all your cleaning customers.
If your brand is not as well known as others, then again, research will be needed to determine if undercutting is a good idea or not.
Don't cut prices too easily without first considering everything because if you do, then you can very easily damage your business brand.
5.
Customer's needs - Make sure that you are covering all of your customers needs.
If you need to, instead of undercutting prices for all your commercial cleaning services, offer special packages for a discounted price, plus your normal packages.
Undercutting cleaning prices may be a good idea for your commercial cleaning business or it may not be.
Only you can determine if your prices need to be lower during recession in order for your business to survive.
Do your homework, keep these factors in mind and make your decision carefully.
Don't rush into anything without first making sure it is a smart business decision.
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