So here’s a simple strategy that you can use when your market is saturated with cheap carpet cleaners. And it’s actually goes against all the advice that is given in this industry. Because it just seems counterintuitive.
Well, we know that if you price your service cheaper you’re going to get more carpet cleaning customers right?
Well not necessarily.
There’s something known as the Chivas Regal effect named after a whisky that was struggling to make sales.
It would seem that they got in some consultants who recommended that they do two things:
- Make the label prettier on the bottle
- Raise the price
Now you’ll notice that nothing changed about the whisky…it was the same. But sales increased.
Apparently the same has been done with cola. In the 1950s, Coca Cola was twice as expensive as Pepsi. Yet, Pepsi sales increased after they raised their price.
Now…imagine what would happen if you not only raised your prices but also increased the quality of how you present what you do.
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