When it comes to raising prices or even changing pricing strategies, most proprietors just follow each other. If one center in town is viewed as the price leader, other proprietors might take these kinds of actions:
- Raise prices just under the leader by a nickel or a dime a game or a $1 or $2 on an hourly package
- Raise prices so you stay significantly under the leader, thus being the cheapest game in town
- Raise prices, (because you modernized!?!) and become the new price leader
Now if I asked you why you are changing your prices, I would probably get the following kind of answers or some mixture thereof:
- Haven’t raised prices in “a while”.
- I just modernized I deserve an increase
- Everybody else in town is charging more, so I can move up too
- My expenses have increased, but my business has not increased that much so I NEED a price increase
All valid reasons, but the customer doesn’t care about any of them. All the customer wants to know is why should I pay you what you are asking and here’s how I hear proprietors responding:
- You: My customer service is better and friendlier
- Customer: Yeah, prove it. They seem OK. But just OK.
- I just fixed the place up and modernized
- Customer: I expect a nice, modern and clean facility. McDonalds doesn’t charge me more when they upgrade their restaurant; why do you?
- You: we offer the best value and are family friendly
- Customer: Yeah, prove it. Show me great values and show me what makes you family friendly?
You see in today’s world, you have to prove that you’re worth what customers are paying. You need to prove your value and your friendliness. “Prove It to Me” is the 21st century customer’s mantra. And if you don’t prove it, they will go somewhere else. For real!
Leave a comment