Earlier today, I wrote an article about how to research your competition and compare various pricing structures. It is important to keep in mind that when you are looking at what other businesses in your industry are up to, that you truthfully consider what products and services you are offering and whether they are comparable. If you are going to charge comparable prices, you really need to be offering comparable services.
For example, if you offer housecleaning and maid services, look at your competitors—not just at their prices but the value of the service that a consumer gets for the price. Are you offering the same value? Are you offering MORE value or more products or services? If so, you may be able to get away with charging a little more as long as you do a good job of promoting the added value and services that your business has to offer. Things like whether or not you bring your own equipment and how modern that equipment is, whether you are licensed and bonded, and the hours you are available or how much “cleaning” the customer gets from a typical housecleaning should all be considered when you are looking at setting your pricing.
Think of how you make your own purchasing decisions. Would you spend the same amount of money for a 10-year-old washing machine that you would for a new one? Are you willing to pay extra for food that you know is fresh and/or organic? You can see that competitive pricing is not just about the actual sticker amount of the products or services that you are selling, but it takes into account service delivery, availability, and the uniqueness of what your business is all about. As we determine what is special about our home businesses that will definitely be a consideration in how we establish competitive pricing for our goods and/or services.
See Also: Setting Prices: Charging by the Hour, Project or Product