What do you KNOW YOUR WORTH?
In addition to local market realitivity, consider what you know, and where you want to be by the next time you consider a rate change.I assume your in the USA.
I'm so tired of being told or suggested by others you cant charge more than the market will bear and then go to just under what someone you respect charges. I have approached it in a different way.
1st I realize that there is a time when my time (what I sell) is worth more to others, and then a time when it worth less to others.
2nd I have employees and the added cost of insurance and overhead of FICA and taxes I have to match.
3rd I have a marketing stratagy that goes like this "Mr Customer I can't give you the world. I can give you the fix of your current problem. I see you need (the part and this material) right now. Keep in mind that it may have another problem that wont show up til we get this first step taken care of. The cost will be $xxx.xx (and I usually include the part and labor I usually have a good idea of how long it will take, my OH, and the materials)."
4th I can't make this equipment new by repairing it but what I do replace will be guarnteed for a year. My labor will be guarnteed for (usually) 30 days.
5th the replacement option is another thing we can look into if your interested. The range of the replacemt equipment has been $XXXX.XX to $XXXX.XX.
6th (the close) "Now Mr Customer which of these options would you like me to schedule, consentrate on. Do you need financing of the new equipment? Do you want to pay just the diagnostic charge and wait til youve thought it over?" (which is 1hr min and the truck crg mine is $60 + $15 = $75.00)
This is the most honest and streight forward approach I have developed to date. The customer has been given: Information, (which I feel in most all cases is worthy of a fee)
Options, (which customers today feel more in control if they have options to choose from at the verry least repair or replace)
Thoughtfullness (consideration of the customers finances has it relates to the options I have presented).
I believe that all people are basicly the same. If you are honest and senseer about your approach to their problem and offer solutions (which is why they call us in the first place) to their problems, consider their needs in the future by addressing what the repair on a 1 yr old vs 20 yr old piece of equipment will cost and the peace of mind they can hyave by using your expierteese, you can and should charge more than the guy down the street.
Now to get them to call you in the 1st place instead of your competition, My best approach has been in person contact with a business card, a reference or 2 from some other customers and maybe a ink pen or other freeby with your name and ph # on it. When your waiting on breakdowns think about offering clean and checks to prevent breakdowns on bussy days. And offer a labor reduction or no truck charge for customers that have your service agreements. Again be honest and up front. Cleaning wont prevent all breakdowns! Just nussance ones.
Good luck and keep us posted on how you decide to go on with this. I 'm always willing to try something new.