Forums: Discussions for entrepreneurs and small business.

I recently started a computer repair & service business, ACE Computer Services (http://www.acecomputernj.com).   

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Andrew Campbell
ACE Computer Services
http://www.acecomputernj.com

Hi Andrew-

Congratulations on your new venture.  I tried looking for a physical address and I guess that`s what you meant by "my store" is you are "virtual." You may want to put that in as a benefit.  You can use it as a reason why you can charge lower rates.

You should also probably call your competitors and compare their rates to yours. This way you can charge maybe 10-20 percent below your competitors. Sometimes there`s a certain price different industries conform to.  If you go way too low they might think your service is fishy. 

Customers are happy to save anywhere from $5-$10 or certain percentage discounts.  When it gets way below a certain price they`re accustomed to-they get spooked.

Once you have adjusted your price some you can probably convert your traffic into real sales by offering them a coupon or perhaps you can upgrade your website to an instant 5 minute free consultation.  This way you can gain their trust straight away.

Just some things to consider.

LT


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http://www.face2facevideocard.com
"videos can say it like it is"
09-21-2007

www.senatinproperties.com
real estate investments

LT - Thanks for the ideas and feedback.  I have some work to do now to round up prices.

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Andrew Campbell
ACE Computer Services
http://www.acecomputernj.com

Hi Andrew,

I can`t believe how many times i have heard this.I have a friend who has published an e-book and he started selling it at $27 far cheaper than similar e-books on similar topic. Doing a split-test sale he sold the same e-book from two different websites at different prices $27 and $47. Guess what? $47 e-book sold 35% more within a 4-week period.

This brings me back to the four P`s of marketing we read at school. One of them is Price. Your price can be your marketing ace and it can be your doom. Too pricey will lscare people away and too low will be dubious and cheap sounding.You need to do research on your price within the context of overall business and not just focus on price as an idependent entity. So comparing price with your competitors is required but also compare their overal business with yours. Find  out why they charge what they charge, whats their value-proposition. Your services have a value-proposition and it includes everything  customers get back from you in return of their money.

Gimme a shout anytime.  

I`m not sure about your industry, to be honest. But I`m a writer and everyone says I charge too low. Truth is, I won`t get half the clients I do if I charge upward of $100 an hour. Plus, I think it`s ridiculous. Definitely price yourself so you profit, but I think it`s smart to go on the lower edge, especially in the beginning. People will see that you charge a fair price:)