How to Avoid Common Pricing Mistakes As a New Foreclosure Cleanup Business Owner

Business is about guts. You've developed the guts to start your own foreclosure clean up business - don't ruin it by pricing yourself out of business. Follow the advice here, and you'll significantly increase your chances of being in business three years from now.Why three years? Because most small business owners fail within this time period. And, they do so because they severely undercharge, which leads to cash flow and a host of other problems.

"Anxious" PricingMost business owners work from a point of anxiousness, or desperation, from the moment they open their doors. Hence, they'll take on jobs they really should pass on to entice customers on board. Their thinking is, "I'll raise prices later."

The Problem with Anxious PricingThe problem with anxious pricing is you will struggle to cover those all-important direct and indirect costs. Most business owners don't even cover direct costs when they use desperation pricing; never mind indirect costs associated with cleaning foreclosures.

What are Indirect Costs?Indirect costs are all the other costs not accounted for in your direct costs for a particular job, but they are still necessary for you to be in business. These are monies that have to be spent whether you get foreclosure cleaning jobs or not. Hence, they should factor into every job you price.Some examples of indirect costs are business insurance, phone, gas, paper, ink cartridges for your printer, and other costs associated with cleaning foreclosures.

Sticking to Your PricesThis is where the guts of owning a foreclosure cleaning business come in. You have to have the moxie to stick to your pricing guns. If you know your real costs, this will be easier than you think.Click foreclosure cleanup business for more info. And this is why it's so important when it comes to pricing.Another reason you don't want to price from a point of anxiousness is that you train clients how to treat you. This is true in every type of relationship - business or personal.

Customers for LifeYour idea with clients is to make them a customer for life. Charge enough so that you can afford to give them a discount down the road if they give you more business. The reason is, when clients give you bulk foreclosure clean up business, they want bulk rates. If you start low, there's nowhere to go.Not to mention that you'll soon become fed up because you'll resent working for nothing - literally. You also run the risk of positioning your firm as lower in quality, even if this isn't true.