Many entrepreneurs set out every year new pest control business that offer a wide variety of services, but the main obstacle is how to execute the fundamentals. One of these fundamental is the price. How to price your pest control services when just starting a new pest control business in order to strike a balance between making profit and offering better services is not easy.
There are several factors to consider. Many people under-estimate or over-estimate the price of their services. So how will you go about properly pricing the price of your pest control services? Well here are three factors to consider when determining the price.
The level Of Competition
When determining the right price for your pest control service, the issue of competition cannot be avoided. You need to come up with a proper strategy and pricing policy. Your business will be affected negatively if your competitors are offering the same services at a cheaper price. Therefore, you need to conduct feasibility studies and competitor analyses before fixing the prices.
Perceived Cost Of Your service
Your need to ask yourself “what is the perceived cost of my services in the minds of the customers? Before fixing a price for your new pest control business services, make sure to strike a balance between the services and its perceived cost. Perceived cost is a critical concern because most of the customers associate low price with poor quality services.
Services Development Cost
Definitely, you cannot run away from this factor. Normally, you cannot price your service below its actual cost price. Price is determined by the total development cost (production cost) and the tax per unit of your services. Finally, after you have fixed right prices you need to monitor them continuously. Keep an eye on the local market, competitors and the profit of your service. You can shift the prices if necessary. Striking a common balance between making a profit and becoming competitive can be difficult. However, with the right expertise the task can be very easy.