How to get your electrical business to “stand out” from the crowd without “competing for the lowest price”

Did you know that as soon as you enter the electrical marketplace and start selling the same thing as everyone else,

Be it wiring up new homes, maintenance work, or installing a light…

If you are just selling the service, you are in the “competitive marketplace”, which means that the service that you are offering is being sold as commodity…

Why is selling your service as a commodity bad?

Let me give you an example,

If we have to electrical businesses

Jack Electrical Services & James Electrical Contracting

Both are one-man-band electricians and have an ad in the paper right next to each other which goes something like this

Jack Electrical Services

Hard-wired smoke alarm installation by licensed electricians $140

James Electrical Contracting

Hard-wired smoke alarm installation by licensed electricians $185.

Which would you go for…?

Chances are if you are like most people you would go for the cheapest option to get the same thing.

This is basically how commodity works if I can get the same thing for less… well, then I’m going to do that…

In this case, it’s a Smoke Alarm Install vs a Smoke Alarm Install, but it can be any service that you offer.

I have had many a customer call up and ask how much for an electrical job or what is your hourly rate…?

Once they have that I never hear from them again!

So unless you want your electrical business to be the cheapest Electrician in town…

I don’t know about you, but running your own electrical business has additional responsibilities.

In my mind, it means we need to charge accordingly or go back to working for someone else!

I’m just not interested in working my arse off for peanuts!

There is no strategic advantage in being the second cheapest electrician in town! Either…

This means we should not give into a Price WAR by lowering prices but instead add more value..

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How do you add move value?

This is done by turning your service into an offer!

An offer a few products grouped together…

When you create an offer it:

  • Increases the perceived value to your customers.
  • Makes what you have unique to the Marketplace.
  • Which means they can’t get your offer from any other Electrician in town.
  • To get your offer they have to go through you!

We could go in-depth on how to create an offer, however, for now, I just want to introduce this concept to you.

I find examples helpful to explain concepts, so let’s look at the smoke alarm ad again and turn one of them into an offer.

We just review the original ad which was

James Electrical Contracting

Hard-wired smoke alarm installation by licensed electricians $185.

The question is how could we add more value to the customer when they make this purchase?

What else might they need what other problems will they run into?

I will run through an example, however,

I would suggest brainstorming any ideas you might have and then only include what makes sense.

Here is what you might include in your offer.

1/ They might not know how to look after the smoke alarm. so we could give them, a guide on “how to test and maintain your smoke alarm”

2/ One thing I always hear customers complain about is that they don’t test because its up high so its to hard. You could then add to your offer a smoke alarm testing tool.

3/ There is a company in the UK has actually made a plastic smoke alarm test stick which is a pole with a pointing hand, that the customer can use to reach up and push the test button. You would be able to purchase this to add it to your offer.

Check out https://www.goodpointcampaign.com/ to find out more about these.

4/ Also, a problem is that many people forget to test their smoke alarms and end up having a flat battery which is useless, you could solve this by putting them on a Smoke Alarm Test Reminder, which can be an email you send once every month or so to remind them to test.

5/ When testing don’t you hate the loud chip sound that it makes, you could offer some ear plus to use when testing so you don’t deafen your ears, you could also have them branded with your company and put in a little case…. it all depends how much effort you want to put in.

6/ When testing chances are they are going to run into a situation where they need a replacement 9v battery, so let’s include one of them too

7/ Now while you are there you could throw in a Free Safety Inspection for them so they know their home is all up to date with the latest electrical requirements

You can include as little or as many items into your offer that you would like, the trick is to provide enough value with your offer that customers can’t help but say yes!

As a rough rule of thumb, I would suggest at least having the main product and then a minimum of three additional things plus one bonus that they get only if they act before a certain date.

Great now we have just made an offer let me run over it to see what it includes

The ad would go something like this…

James Electrical Contracting

With every Hard-wired smoke alarm installed by licensed electriciansyou also get these extras free of charge

How to test and maintain your smoke alarm workbook. (Value $97)

Smoke Alarm Testing Tool (Value $25)

Smoke Alarm Reminder (Value $57)

Earplugs and carry case (Value $24)

Backup 9v Battery (Value $10)

Purchase in this month to get a Free Safety Inspection ($197)

Total Value = $410

You Pay Only $197.

Call 1800 or go to mydomain.com

Wow…

Do you see that?

The customer is now getting $410 worth of value for… $197

I hope that helps show you the power of creating an offer vs selling a single service…

Now, this can be done with any product or service that you sell.

My challenge for you is to come up with an offer that you can use in your electrical business.

If you want to discuss your offer with me, please join us in our free Facebook group

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