Sep 24, 2024
In today’s video, we are diving deep into a critical topic that can make or break your business: Knowing Your Value. If you’re a business owner who constantly feels like you’re going above and beyond for your customers without seeing a fair return, this video is for you. One of the biggest profit killers in any business is failing to set clear pricing for additional services or work. Today, we’ll explore why this happens, how it impacts your bottom line, and what you can do to ensure you're compensated for every extra mile you go.
Customer service is king, and we all want happy customers, but there’s a catch: If you’re not careful, you could find yourself out of business while trying to please everyone. This video will share real-world insights, including the story of a cleaner who faces this very dilemma.
The Cleaner’s Story: Customizations Gone Wrong
Imagine you’re a cleaner, and you’ve built a good relationship with your client. One day, they ask for some extra customizations—maybe an additional room to clean or a deeper clean in specific areas. You oblige because you want them to be happy. They’re thrilled and pay the bill, but next time, they ask for a little more. And then a little more. Soon, these customizations become the norm, and the client expects them at no extra cost.
What started as excellent customer service has now turned into an expectation of free. And this can happen in any industry. You think you're building loyalty, but you’re also building a profit-sapping pattern.
The Pros and Cons of Saying Yes
While making your client happy is great, if you’re not charging for extra work, here’s the reality:
Pros:
- Your client is happy.
- They pay their bill.
Cons:
- You’ve created an expectation of free work.
- Profits quickly disappear with each additional request.
- Your team and yourself will get burned out from over-delivering without compensation.
The Reality of the Needy Customer
In my 25+ years in business, I’ve seen this happen time and time again. The clients who are the neediest and most demanding are usually:
- Not profitable,
- Not loyal, and
- Rarely satisfied.
These customers drain your resources, morale, and profits. The longer you keep these clients around, the worse it gets.
The Solution: Know Your Value and Charge for It
Here’s how you can protect your profits and sanity:
- Set your services and pricing in stone—no exceptions.
- Stick to your pricing—don’t cave under pressure to offer freebies.
- Set expectations upfront—extras cost extra.
- Build additional services into packages—this way, clients know that premium services come with premium pricing.
- Fire needy and cheap clients—they will never be profitable or loyal. Don’t be afraid to cut them loose.
Homework: Take Action
This week, put together a plan that ensures you’re getting paid for all of your services moving forward. Review your current client base—if you have a needy, price-haggling client, it might be time to let them go.
Remember, you deserve to be compensated for your hard work. It’s time to value your services, stop giving away free work, and create a business model that ensures profit with every client.
Make sure to subscribe for more business tips and strategies on growing a profitable business without burning out!
Keywords: business growth tips, knowing your value, pricing strategy, customer service, profit killers, avoid burnout in business, setting clear pricing, how to stop losing money, needy customers, managing difficult clients, business strategy, how to increase profits, business profitability, extra services pricing, setting client expectations, business tips for entrepreneurs.