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Question: Is it possible to change the basic premise of a pre-existing business? If so, how?
I was re-reading the sticky topic on having a successful business premise and thinking about how my carpet cleaning business provides value for people.
1) My business makes people feel better about having a cleaner home.
2) I help solve the problem of having a dirty carpet, such as an unsightly spot or dust mites.
3) I educate clients on the value of a clean carpet.
4) Clients feel better about having their home showroom perfect for a party.
5) Most clients feel thrilled and relieved when I’ve solved their carpet problems.
The problem is that although I provide incredible value for what I do, it is based on something that people don’t want to buy. People will avoid cleaning their carpets for as long as is physically possible. So in reality, I’m providing something that is of little value. Thus, I would conclude that I need to change my business premise.
So what values do I change my business premise to target? What do people value today? Some people value what I provide, but they are far and few between, though enough to keep me afloat for now. The obvious, generic answer would be “saving moneyâ€, though if you can think of anything else, please let me know.
How does what I do save people money? Very little, really. They have to pay money to get their carpets cleaned by anyone. The only way I would be saving people money is if they were already losing money and calling me would help them lose less. To my knowledge, this means one of two things:
1) They are price shopping and I can offer a lower price than the next guy.
2) They are selling their home and I can clean for less than the cost of replacing the carpet.
The first scenario is a losing battle. Someone will always always always be willing to undercut my price, no matter how low I go, because I actually have ethics. I’m unwilling to use bait-and-switch tactics, because I actually like to be able to sleep at night. Maybe that’s a weakness on my part. I care too much. Not to mention, I don’t currently have the ability to replace 80% of my client base per year, which is the standard for my industry. I currently lose 6% of my client base per year, mostly due to natural attrition.
The second scenario is where I’m currently generating what few new clients I am getting. However, given the slow real estate market, I don’t see how I can count on that being a reliable source of clients.
I think I’m in a business that is based on a bad business premise. It simply does not provide enough value to enough people, even with addon services like oriental rug cleaning or leather furniture cleaning. I think the same goes for my entire industry, really. How can I change that?
Thanks for the discussion.
I was re-reading the sticky topic on having a successful business premise and thinking about how my carpet cleaning business provides value for people.
1) My business makes people feel better about having a cleaner home.
2) I help solve the problem of having a dirty carpet, such as an unsightly spot or dust mites.
3) I educate clients on the value of a clean carpet.
4) Clients feel better about having their home showroom perfect for a party.
5) Most clients feel thrilled and relieved when I’ve solved their carpet problems.
The problem is that although I provide incredible value for what I do, it is based on something that people don’t want to buy. People will avoid cleaning their carpets for as long as is physically possible. So in reality, I’m providing something that is of little value. Thus, I would conclude that I need to change my business premise.
So what values do I change my business premise to target? What do people value today? Some people value what I provide, but they are far and few between, though enough to keep me afloat for now. The obvious, generic answer would be “saving moneyâ€, though if you can think of anything else, please let me know.
How does what I do save people money? Very little, really. They have to pay money to get their carpets cleaned by anyone. The only way I would be saving people money is if they were already losing money and calling me would help them lose less. To my knowledge, this means one of two things:
1) They are price shopping and I can offer a lower price than the next guy.
2) They are selling their home and I can clean for less than the cost of replacing the carpet.
The first scenario is a losing battle. Someone will always always always be willing to undercut my price, no matter how low I go, because I actually have ethics. I’m unwilling to use bait-and-switch tactics, because I actually like to be able to sleep at night. Maybe that’s a weakness on my part. I care too much. Not to mention, I don’t currently have the ability to replace 80% of my client base per year, which is the standard for my industry. I currently lose 6% of my client base per year, mostly due to natural attrition.
The second scenario is where I’m currently generating what few new clients I am getting. However, given the slow real estate market, I don’t see how I can count on that being a reliable source of clients.
I think I’m in a business that is based on a bad business premise. It simply does not provide enough value to enough people, even with addon services like oriental rug cleaning or leather furniture cleaning. I think the same goes for my entire industry, really. How can I change that?
Thanks for the discussion.
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