At some point or another, we are all faced with a low-cost competitor. The solution isn’t necessarily to lower your own prices, but instead determine what makes you different and worth the extra money. Nailing down cost versus value is an age-old question that businesses in all industries continue to grapple with. So, what do you do to sell your services when put up against competitors that offer similar services for less?
Here are some tips.
#1: Start researching.
Look objectively at where your agency stands in comparison to your competitor. Analyze what the market needs and preferences are, including looking at what client segments you serve, and your competition serves. Is your target demographic the same? If you’re serving different groups, then you can continue with your strategy. But, if you and your competitor are in the same space and you believe they have the chance of entering into the space you serve, then you will need to dive in a little deeper on ways that you can stand out.
#2: Provide value.
Focus on the way you are different from the competition in terms of quality. While cost is a big factor for clients picking an agency to work with, they ultimately care about the quality that comes with the money they’re shelling out. If you distinguish your agency by providing superior customer service and excellence in communication, your clients will feel like you’re their partner. A partnership goes a long way in establishing loyalty and client satisfaction.
#3: Provide peace of mind.
Finding save, reliable childcare is fraught with anxiety. What if the nanny cannot be trusted? What if she isn't reliable and my job is at risk? How do I make sure she is fully vetted? What is fair pay and benefits? Distinguish yourself in the market based on experience, partnerships, client testimonials, or simply educate on all the bases that you cover the family may not know of or have considered. You can provide that all important peace of mind for the parents.
#4: Professional accreditation
#5: Stay firm on prices and find free ways to engage clients.
Undercutting your prices to match a competitor can negatively impact your business profits. So, stay firm on your prices and add value to it by offering other free ways to engage clients, either on your website or on your social media platforms. Offer videos, provide online content that demonstrates your agency as a trusted authority. This will justify your prices and establish your business as a premium agency.
The bottom line: your agency is unique and sharing what makes it special is what will make it stand out from the crowd.
HomeWork Solutions partners with the nation's premier nanny agencies as their household payroll partner. We can help you provide value by providing parent education, free consultations, and staff training. If you aren't already partnering with HWS, contact us to learn more!