I was talking to a business coach the other week and was trying to explain why it can be so hard to market a service. The first problem is a service isn't tangible; so a potential client can't pick it up or return it with a receipt if they decide they don't like it. The other problem is that potential clients will naturally focus on the A and B; the "I need to do a Tax Return" and "I can do Tax Returns" checklist. The thing is, with a service the journey between A and B will be different depending on who is providing that service.
At the same time I see a lot of bookkeepers post on forums with the question of: what should I charge? The reply they tend to get from others is to first look at their local competition. The chances are you have done the same and it's only natural; you want to offer an new service so you take a look at what your competitors are charging for that same service.
What would happen if next time you decided not to look?
Imagine I came to your Dental Practice and tried to sell you an apple. It's a lovely looking apple and I am prepared to sell it to you for 60p. A couple of hours later, you meet with someone else who also tries to sell you an apple. The difference is that they are selling theirs for 40p. The apples are the same in every way other than price. So do you want a 60p apple or a 40p apple?
Whilst you're pondering whether one of the apples are over or under priced, someone else comes into your Dental Practice and tries to sell you a pear. The pear is 90p. That's considerable more money that the cheaper apples but it throws up a different situation. Are you now making a decision based upon price or whether you'd prefer a pear over an apple?
Of course there will always be patients who will choose their Dentist based upon price but the vast majority don't. Most of us only focus on price when there is no other way of differentiating one product or service from another. The trick is to focus on what makes your Dental Practice different from your competitors. What journey will the patient go on when they travel from point A to point B. Discover that and you'll turn the decision away from price. You need to demonstrate that you're a pear in a world of apples.
At the same time I see a lot of bookkeepers post on forums with the question of: what should I charge? The reply they tend to get from others is to first look at their local competition. The chances are you have done the same and it's only natural; you want to offer an new service so you take a look at what your competitors are charging for that same service.
What would happen if next time you decided not to look?
Imagine I came to your Dental Practice and tried to sell you an apple. It's a lovely looking apple and I am prepared to sell it to you for 60p. A couple of hours later, you meet with someone else who also tries to sell you an apple. The difference is that they are selling theirs for 40p. The apples are the same in every way other than price. So do you want a 60p apple or a 40p apple?
Whilst you're pondering whether one of the apples are over or under priced, someone else comes into your Dental Practice and tries to sell you a pear. The pear is 90p. That's considerable more money that the cheaper apples but it throws up a different situation. Are you now making a decision based upon price or whether you'd prefer a pear over an apple?
Of course there will always be patients who will choose their Dentist based upon price but the vast majority don't. Most of us only focus on price when there is no other way of differentiating one product or service from another. The trick is to focus on what makes your Dental Practice different from your competitors. What journey will the patient go on when they travel from point A to point B. Discover that and you'll turn the decision away from price. You need to demonstrate that you're a pear in a world of apples.
