
We had some questions come up for a service business that wanted some advice on how to market and price themselves at some trade-shows. This in turn led into a discussion about the correct sales funnel for most businesses. Here’s our two cents below:
Q. Hi Steve, we are a service business that is about to attend two trade shows. How much should we charge for our services?
A. Hi Sam, The most important part of this trip for you is getting new contacts. My suggestion would be that instead of worrying about price, you can offer them something free, so they can see the quality of your service and get used to working with you. It doesn’t have to be a lot, but take a look at each area of the services you deliver and figure out something that is worth or would cost you $50-100 dollars to deliver in each area.
You want to create a sales funnel and start to gain credibility in the mind of your potential customers. Every business has a kind of sales flow which works like this:
1) New potential contacts made. This initial contact can come about from a trade show, a search engine visit to your website, any PR that you do, word of mouth from your existing customers, any type of guerrilla marketing, or advertising. These are now considered prospects.
2) Building understanding and credibility. By giving prospects something
2) Building understanding and credibility. By giving prospects something free causes them to understand what your company does and how it could help them.
2 1/2)- (Optional) – Selling or giving away an inexpensive book, report, video or magazine that is valuable to your prospects. This lets you deliver some value, explain your philosophy and product/service better. Books, magazines, special reports, all are inexpensive to produce and serve to widen your pool of potential prospects.
3) An inexpensive paid service that is relatively little risk for your prospect. You are not trying to make a profit on this paid service but it turns your prospect into a customer and when they are finished with that service they then can get signed up for your larger services. If you’ve done your job right, this new customer will now know you and feel comfortable spending more with your organization.
4) You then deliver the larger services and that is where ALL your profit is made.
Some companies try to just jump from some sales literature in point two to major services in point four, but that doesn’t always work. Conversely, they try to profit from the small services. That doesn’t usually work.
I realize I didn’t really answer your question about pricing but I felt it more important for you to develop contacts and potential customers from this trip and develop a more long term system and strategy that will help you gain more customers. Remember, you will need have some kind of info available about your company. (you can use http://kinkos.com to reproduce your literature and print things in the location where you will be so you don’t have to ship or carry extra pounds around )
These contacts then need to understand you and your company better and do some small, simple, risk free service. After that, you can then really talk business. Now, considering the economy, partnering with them in some way might work, but somehow you have to figure out the labor costs in not just doing the work, but the cost of actually servicing the customer and supervising the project as well. If you can get some kind of competitive intelligence going on so that you know the rates other service businesses are charging, that will definitely help you a lot, but remember that there are always several different markets- Low cost lower quality, middle of the road on both counts, and High End, better quality, more personalized.
All the “mission statements” that are to the effect of The “we want to give our customers the best quality and the best service for the lowest price” are just blowing smoke. Customers know that they need a bang for the buck but that there are always trade-offs of quality vs price. So if you are higher end, say so. If you are lower end say that too. The wrong thing in most instances is to aim at everything, because there is no way that strategy can work in the long run.
I don’t know exactly what your service business is, but I hope this helps.
yada company, yada yada marketing, yada trading, yadayadamarketingcom, yada yada market
The sales funnel is a crucial concept for service businesses, guiding potential customers from initial awareness to final purchase. Understanding each stage of the funnel allows businesses to tailor their marketing strategies effectively, ensuring that they address the unique needs and concerns of their target audience at every step.
For example, the top of the funnel might involve creating engaging content that draws in visitors, while the middle stage could focus on nurturing leads through valuable resources like free reports or consultations. By mapping out the customer journey, service businesses can enhance their marketing efforts and improve conversion rates.
Pricing strategies play a pivotal role in attracting customers at trade shows. Service businesses must consider how to present their offerings in a way that highlights value while remaining competitive. This can involve offering introductory prices or bundled services that encourage attendees to engage with the brand.
Additionally, businesses can leverage psychological pricing techniques, such as setting prices just below a round number, to make their services appear more appealing. By strategically planning pricing and promotional offers, companies can maximize their impact at trade shows and generate meaningful leads.
Offering free services or products can be a powerful strategy for service businesses looking to build trust with potential customers. By providing a risk-free experience, businesses can demonstrate the quality of their services and foster a sense of reliability among prospects.
For instance, a company might offer a free trial of their service or a complimentary consultation. This approach not only showcases their expertise but also encourages prospects to consider investing in paid services once they have experienced the value firsthand.
Conducting a competitive analysis is essential for service businesses to understand their market position and identify opportunities for differentiation. By analyzing competitors’ pricing, service offerings, and marketing strategies, businesses can refine their own approaches to better meet customer needs.
For example, if a competitor is known for high-end services, a business might choose to focus on delivering personalized customer experiences or more affordable options. This strategic insight can help businesses carve out a niche in a crowded market and attract a loyal customer base.