Home Care Marketing
I wanted to focus this episode of “A Drink with the Hurricane” on one of the most important aspects of your business – its pricing structure.
If you look at the breakdown of Home Care costs within the last five years, you’ll notice that prices have remained the same. Pick up a copy of Home Care Pulse, or any other research report, and you’ll find that from 2010 to 2015, home care costs haven’t changed. That’s a huge problem! And here’s why.
The cost of every day goods has increased 25%-30% within the last five years, a 5% yearly increase since 2010. Home Care is actually the only industry whose pricing structure hasn’t changed in that time frame. That’s because too many home care business owners fear that raising their rates will scare off customers who can’t afford their services.
But if your business is losing money because of an outdated pricing model, the simple fact is – you’re not going to be in business very long. Between government regulations, accountable care and labor law changes, home care business owners have no choice but to increase their rates – yet some business owners are not doing so.
Changing your prices from $20 an hour to $22 an hour, for instance, is really not that much of a difference. If clients can’t afford your $20 rate from 5 years ago, they probably can’t afford your small increase at $22 either. It’s really not a tremendous hike.
So you have to be confident in the prices you charge and firmly stand by them, with the guarantee that your customers will receive the best quality care. Charging slightly above the average rates is fine when you have the reputation of being the best home care company in your market. The most successful businesses go above and beyond for their clients, and it’s something all home care agencies across the country should be doing.
That’s why I dedicated this entire episode to giving you a glimpse into next month’s webinar. I can’t stress how important this webinar will be for home care companies. Accurately calculating your pricing model will be the most important thing you do for your business in the New Year. So mark your calendars—December 1, 2015. You won’t want to miss this one!
That’s our tip of the week. I look forward to speaking with all of you on December 1. In the meantime, go out there and continue to blow away the competition!