Pros and Cons of Posting Your Rates

[minner]

There are several commercial guys on this sight and regardless of your specialty we have one thing in common, COMPETITION. I run a bush hogging business and have been mildly successful. I advertise locally and make my rates known on a up to date website. I'm also detailed in how my rates are calculated so that almost anyone can get a ballpark idea before they even call me. I try to be as accommodating as possible, communicate by any means possible, and excepting nearly every kind of payment there is.

Here is my question:

**Is it more, or less, of an advantage to post your rates to the public in terms of your competition?*

Pro-
Give the potential customer the warm and fuzzy of what a general cost will be
Eliminate folks just fishing for info
Personally I am more apt to call someone of I know ahead of time what to expect vs. "just call for and answer". I always like to know where the number$ come from.

Con-
Your pants are down in front of the competition, and allow yourself to be "shopped" against everyone.
Some folks don't want a "nice guy" they just want it done as dirt cheap as possible

 

[300UGUY]

I don't have info to share now, but I am interested in the same thing, because I am trying to get a website together for my wife's shop, and I don't know if I want to include the rates or not.

 

[nybirdman]

I run a small business,not tractor related.Your best selling point is the final product not cost.The total experience is what brings new customers.Would you like to go out to eat and have an inferior but cheap meal or pay a little more and enjoy the experience?Quality sells.

 

[Tomtint]

I'm in a pretty price competitive business. I feel that unless you are selling something that know one else has, Everything is a commodity today including labor. Someone is always willing to work for less. Posting prices will weed out most of the window shoppers, but also allows the customer to take your number as a bench mark to shop against. Unfortunately, the bait and switch tactic is a time tested method of enticing people to call and at least engage conversation. Maybe if you are going to prices, post the base price without add ons. .. Every other big business does it this way.

 

[azkubotaguy]

I do not post my rates, I do post testimonials from customers as well as pictures of my work.

 

[KTurner]

As a customer, it bugs me when someone doesn't list the price. I'll keep looking until I find someone that does. I don't want to start a conversation until I know what to expect. Maybe not an exact price, but are you going to be closer to $200 or $1,000? One of the reasons this bugs me so much is because of companies that do this and then hound the **** out of me for the months trying to sell me something. I'm still getting phone calls now, eight months after checking prices on car insurance. Leave me alone already. I'm not suggesting you'd do this Minner, or that this would be a common practice in the tractor work business, but, in my eyes, it puts a stink on everybody that makes you talk to a person to get a price. It just makes me want to avoid anyone that insists on somehow getting my contact info (asking for phone number, using caller id, etc).

If you're worried about people undercutting your prices.... Your competition could very easily call your phone number and pose as a customer to get your prices. And, if you're worried about your customers price checking, and you're competition is calling to get your prices and undercutting you... What does it matter if its done over the internet or over the phone?

The price is just one factor. quality and customer service are two more big factors. To me, being up front with customers and not harassing them are two big scores for customer service and can certainly make up for a higher price (within reason).

Keith

 

[minner]

As a customer, it bugs me when someone doesn't list the price. I'll keep looking until I find someone that does. I don't want to start a conversation until I know what to expect. Maybe not an exact price, but are you going to be closer to $200 or $1,000? One of the reasons this bugs me so much is because of companies that do this and then hound the **** out of me for the months trying to sell me something. I'm still getting phone calls now, eight months after checking prices on car insurance. Leave me alone already. I'm not suggesting you'd do this Minner, or that this would be a common practice in the tractor work business, but, in my eyes, it puts a stink on everybody that makes you talk to a person to get a price. It just makes me want to avoid anyone that insists on somehow getting my contact info (asking for phone number, using caller id, etc).

If you're worried about people undercutting your prices.... Your competition could very easily call your phone number and pose as a customer to get your prices. And, if you're worried about your customers price checking, and you're competition is calling to get your prices and undercutting you... What does it matter if its done over the internet or over the phone?

The price is just one factor. quality and customer service are two more big factors. To me, being up front with customers and not harassing them are two big scores for customer service and can certainly make up for a higher price (within reason).

Keith

Keith, this in more in line with my thinking. I like to know what I am getting into, and have had the same experience with salesmen as you. I once got a quote from BigA** Fans and I still get calls from them 2 years later. I have in the past had both calls and texts from competitors asking for pricing. It doesnt really bother me, usually its really easy to tell right off the bat its almost comical.

 

[Piston]

I'm interested in this subject as well. I'm not in business yet, but plan to be this summer, just starting out.

I like when I'm looking for a service to find prices, at least a ballpark price. I think it's good to post them but don't just leave it at that. You have to get the point across that your not selling a bush hog and tractor rental, your selling a service. You want people to know that's what their buying. Good products cost more than bad products. Anyone with a tractor can go out and buy a brush hog and mow down some fields, but you want your customers to know you do it better, safer, more efficiently, etc.

I think that simply posting your prices and leaving it basic like that is not a good idea. I think posting them and getting the point across that the customer is buying your service, knowledge, experience, and skill is really what can make the difference.


Some people don't give a darn HOW good your are, or how BAD you are, they just want the cheapest possible price with no other considerations. You don't want these people as customers.

So in a nutshell, I think it's more important HOW you post your prices and get your point across, rather than whether or not to post them at all.

Good luck with your business.

 

[LD1]

I am am just small time. I do some bushhogging in the summer and only advertise VIA c-list.

That said, I do post my rates. That way there isnt people just calling to price shop. They know my rates. (I do give a range, based on condition, total acreage, location, etc). So they call me and I finalize a total for them, but they already know a ballpark ahead of time.

I see alot of guys advertise on there who are cheaper than me, yet I still get as much work as I can handle in my spare time. Either they arent reliable, or the prices they advertise are just to lure the call in.

I see people advertise in my area "5' bushhog, $25 per acre and $50 minimum and a phone number. Thats it, nothing more in the add. Well, unless it is your neighbor calling, you aint making money at those rates.

So by posting a price, your customers are getting a heads up, so they dont have sticker shock. Sure, your competition may see that and charge just a tad less. But my rates are my rates. I am not in it to gouge anyone, and if I charged any less, I wouldnt be interested in doing the job. So I could careless what the competition does.

And as a customer of other services or products, I am one that will refuse to call if a price isnt listed. There is nothing secret about it, and as a customer, it makes me think that your prices are higher than anyone elses, and you want me to call anyway so you can give me your sales pitch as to why I should spend more many with you rather than less with the competition.

 

[quicksandfarmer]

I like what Angie's List does -- testimonial from a customer, then a description of the job the customer had done, including the cost. Gives people an idea of the work you do and what it costs without giving out your pricing formula.