Pricing Against Competition

Bright Sparks Podcast

One of the most important decisions that you need to make when you’re running a business is pricing. This is true whether you’re running an electrical or HVAC business or in fact any other kind of business - it doesn’t really matter. If you’re selling products or services, you have to put a price on them. That’s how it works.

Pricing decisions can be really difficult. And that’s true whether you’re one bloke in a van with a box of tools or you’re running a gigantic corporation with hundreds of people. The problems are all basically the same.

Firstly, there is no guaranteed formula for determining the right price for the things you sell in any given situation. This is because it’s never possible to know all of the relevant information that should go into deciding the correct price of something. In particular, you can’t look inside the mind of your customer. You can’t see the value proposition for whatever you’re selling in exactly the same way as they do.

So, how do you go about solving this problem? Well, I’m not going to give you a crystal-clear answer on how to do it, because I just told you that there is no guaranteed formula. However, I can give you some tips on how not to do it, and I can also share some ideas about the things you should be doing to maximise your chances of getting the best price possible.