Shared by Lynn Wise Founder of Contractor In Charge
Customers want to know what a service will cost before they hire someone to do the job. In a lot of cases, they also want to know why things cost what they cost. Lynn Wise Founder of Contractor In Charge tells us that while this wasn’t always vital in the home repair and service industry, as customers become more comparison-savvy, not having transparent pricing can mean losing out to competitors, even when those competitors actually charge more for the same services. At Contractor In Charge, the customer and business-facing experts have come to realize just how important that is. Lynn Wise Founder discusses what they have learned:
Image credit: Anete Lusina
The need for transparent pricing
Customers are more willing to pay extra for a service if they understand why they are paying extra. That’s where transparency comes into play.
“Customers commonly wonder why a price is set at a particular point, or why it has recently changed. The popular fitness startup ClassPass was recently criticized for “squeezing studios to the point of death” with the aid of dynamic pricing technology that made prices opaque and unclear, as it was unclear when and why prices fluctuated. This created discomfort and pushed many customers to leave the platform.
Our second suggestion, therefore, is to apply the rule of manner by being increasingly clear. “Demystifying” how prices are set or changed can help establish a trusting relationship with customers. Specifically, companies can work to explain their rationale or disclose components of the price for a product or service.”
As noted in that quote in the Harvard Business Review, potential customers also simply want to know what they are getting into. Everyone likes surprises, but no one likes surprise bills that have a huge amount due on them. This is especially true during times of economic hardship. Lynn Wise Founder of Contractor In Charge notes that having pricing available to customers can make the difference between them staying or walking away. It’s that simple.
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The advantages
To ensure that your organization gets and retains a maximum number of clients, it’s important to work on transparency. Earn the comparison-shopping customers. If you have set prices, it allows potential customers to review and compare costs with what other companies are charging. They are also likely to compare the type of services provided, the quality, and any ratings that your company may have. This means that when they choose to utilize your services, they know what they will be getting and are already confident about their decision, leading to a higher rate of customer satisfaction.
Contractor In Charge – Technology and transparent pricing
Should your business be using AI for transparent pricing? Taking advantage of the abilities of artificial intelligence is one of the best ways to ensure transparent prices, according to Lynn Wise Founder of Contractor In Charge. AI can maneuver and collect data from competitors and help trace out what the demands are in the market. It can also keep up to date on fluctuating factors such as the cost of supplies and fuel, notifying the business as well as clients.
At the end of the day, whether you have a simple price list, can offer a quick quote to potential customers, or have an AI ready to answer all their questions, it is the companies that embrace cost transparency that are the ones that grow.