Don’t Race to the Bottom

by Stephen Dale

Are you competing in the commodity market? If so, you will lose.

In the information age where knowledge is accessible to everyone, you can no longer hide behind marked-up prices behind the curtain. Today, I can find a true price for anything, as well as watch a YouTube video from hundreds of “professionals” detailing the process. I can even buy most products online or through a local marketplace. What used to take years of apprenticeship to learn, now takes a five-minute video and maybe a couple of forums to research. So, why should I call you and pay your marked-up prices when I can become a weekend warrior and save my money?

Do I even need to mention the stiff competition where four or five service providers are undercutting each other on price to stay busy during the off seasons? What about the venture capitalist sinking money into larger providers to buy up the small shops? I’m not going to even mention the labor shortage in the trades (although I just did.)

If it sounds like the sky is falling because this isn’t the same world of business you are used to, there is hope. Although price will always be a part of the equation, it is not always the end-all decision maker for clients choosing to move forward with your repair and/or replacement. Your customer experience not only defines your culture, but it also allows you to compete as your distinguishing factor. You have to be the Chick-fil-A of service contracting.

You must clearly define your brand promise that refers to the blend of perceived benefits associated with your organization. Ask yourself: What is important to your client? How do you want them to feel prior, during and after their interaction with each touch point of your process? How is your organization consistently delivering (or not delivering) on your brand promise? What is being done well and what could be improved? Your brand promise is a succinct expression of how you want your client’s experience to feel at an emotional level outside of the end product. Giving your customer something unexpected through proactively seeking to wow your customer in each touch point is a great start as well.

This culture of engagement starts with your people and your desired behavior of values and beliefs your team mirrors intentionally. Your ideal team members are those who most closely demonstrate your desired behaviors. When you understand that success starts with talented people, your most important role as a leader is to give your people a reason to align with your cause, a reason to stay beyond pay, and a reason to stay engaged. Ask yourself: What words or phrases would you use to describe your desired culture? If you are rewarding the behavior you want, what does that behavior look like and how are you intentionally designing that environment? When you design your employee experience to reflect your desired outcome, your team becomes more engaged, thus serving your customers better.

Along with your purposeful employee experience, you must create an exceptional service experience architected from systems and processes. Exceptional service is not the result of a cool mission statement on your website or a few motivating posters throughout the office. Exceptional service is the results from the intentional delivery of services on a consistent plan of action where your customers receive service at a level of quality that differentiates you from the competition. This is not a promotion to roll in some arcade games and start a Pilates class, but a call to action to create an engaged employee. This has to do with a culture of creativity and innovation to serve your customer as the professional they called for to begin with. And through providing them with solutions and options that they not only need but want as well.

Ask yourself: Why should I do business with my company? What makes you so memorable and different? If you tell me, “We wear floor savers, we have clean uniforms, we give a price before we start, we fix it right the first time, and we are licensed, bonded and insured.” Great, you just met industry standard! You want a cookie? You see, what you may have done 10 years ago was a distinguishing factor to set you apart, but today, great is not good enough. Ten years ago, I though Blockbuster Video was awesome. Today, I can’t imagine driving to a video rental store when I can stream and download the latest shows right from my couch without ever leaving the comfort of my home.

Operationally, competing on price is a cutthroat business. Allow your designed company purpose, company culture, and your unique customer experience to define your brand. Aim high. Never race to the bottom.

Stephen Dale is Director of Training at Power Selling Pros. Dale brings over 20 years of experience as an operations manager in the home services industry working for two large MEP companies in the Dallas area. He has been a coach and trainer with Power Selling Pros for six years, working with hundreds of companies and vendors during his tenure. His passion for the industry illuminates through his ability to discover client’s pain points and offer solutions for success.