Every businessman who sets up a business including the provision of towing services is in it for the monetary gain. A towing company that is in its initial stages may charge a lower price in an effort to get more clients. However, as the company grows, there will be a need to raise the prices so that you can maximize your profits. Below are some great tips that will guide you when readjusting towing prices upwards:
- Notify your clients about the intention to raise the prices: To avoid losing your existing clients as a result of the increased prices, you should notify them of the need to raise the cost of your services so that they will be ready when next they require your services.
The notification about the increased prices should explain why you have to raise the prices and if this is done using the right tone, no customers will be lost.
- Increase the prices in phases: If you intend to raise the prices by a certain percentage, you can break down the percentages such that you will not raise the price by a big percentage at once.
- Provide excellent services: Every customer appreciates excellent, high-quality, as well as affordable services. Let the customers feel the value of the amount of money they will be paying for the services and you will have them coming back for more.
- Concentrate on the customers who can pay a good amount as long as you are providing quality services: If you get a customer who is not putting too much emphasis on the price he is paying for the towing services as long as the quality of the services are good, concentrate on them. If such customers are given a professional treatment, they will not take off if the prices are increased.
- Incorporate other services: You can add some extras in addition to the towing services and in doing this, the customers will not complain about the increased prices. You should offer a better deal to your clients before letting them know of the intention to raise the prices.
When raising the prices for your towing services, you can choose to have the new rates for any new client while the existing clients will be charged the old price. This may go on for some time within which you will notify your clients about the intention to raise the prices.
When increasing the cost of your services, you can concentrate on the services that bring in the highest income while letting the cost of the low paying services remain the same. The high cost of the towing service, which is the most popular in this case will have a positive impact on the company’s income.
The customers who are unwilling to pay the increased cost of the towing services can be given a lesser option according to the value for their money. This should be explained to them so that they make a choice between having the best services and having to pay less for substandard services. With such tactics in place, you will notice that all the customers will eventually agree to pay the higher price for the towing services.