The Scoop Report

September 24th

Growth isn't just about more clean-ups; it's smarter ones.

↓

Hey Reader , Tony here! 👋🏼

I want to deep dive on a topic that can make or break any business - pricing. In the world of pet waste removal, striking the right balance between competitive rates and profitability is the key to growth. These are the advanced strategies, insights, and tools I used to refine my pricing model. 💰

Understanding Your Costs 📈

Your price isn't just a number; it's a reflection of the value you deliver and the costs you incur.

• Direct Costs: These are the costs directly associated with providing your scooping service.
  1. Gas: With fluctuating fuel prices, ensure you're monitoring your monthly expenditure. ⛽️
     ​
  2. Equipment & Supplies: This includes everything from your scooping rake or bucket to the plastic bags you use. 🪣
     ​
  3. Disposal Fees: Whether you're renting out a dumpster, paying the local town to leave it in your trash can, or taking the 💩 to a dump, it'll cost you money to dispose of the pet waste if you haul it away.
• Indirect Costs: These are the overarching costs tied to your business operations.
  1. Marketing: While essential, it's crucial to get a good ROI on every dollar spent. Anything you spend money on trying to bring awareness to your business is considered Marketing. 🎥
     ​
  2. Administrative Expenses: This encompasses everything from software subscriptions for scheduling and invoicing to office supplies and memberships to associations. 📄
     ​
  3. Insurance: Regularly review your policy to ensure you're getting the best rate and necessary coverage. This is especially true when working with Property Managers and HOAs as they typically have strict Insurance requirements. Insurance will go up the bigger your business grows.
     ​
  4. Vehicle Maintenance: The wear and tear you put on your vehicle will add up over time with replacing tires, oil changes, batteries etc. 🚗

​

Analyzing the Market 🔎

In our industry, understanding market dynamics is essential.

• Competitor Analysis: Regularly research your competitors. Are they offering promotions? Have they introduced new services? I don't think you should ever obsess over your competitors but it's important to keep a "hand on the pulse" and keep your eyes open for anything that's working/not working for them. 📊
  ​
• Perceived Value: Price is what someone pays, value is what someone gets. Have the BEST service quality, be reliable and consistent, and foster strong relationships. Positive reviews and testimonials can justify a premium price. There are an infinite numbers of ways to bring more value to your customers, but going to 0 with "free" service just flat out undervalues our industry. 💵

​

Price Elasticity in Pet Waste Removal 💸

Understanding the concept of price elasticity is crucial in determining how a change in your prices can impact your sales volume.

• Underpricing Risks: Setting your prices too low can indeed attract a large volume of customers, but having more business can hurt you. Take the story of my friend "Mike", for example. He entered the market with the lowest prices, hoping to quickly snatch up a significant market share. Initially, his strategy seemed successful as he scooped up a lot of clients. However, the business struggled to cover operational costs and, with thin margins, couldn't invest in growth to pay for advertising or hire more people to support all the customers. Within a year, he faced severe financial challenges, and his customers were leaving due to poop being missed in the yard. Mike had to drastically increase his prices, leading to many more of his initial clients leaving. ❌
  ​
• Premium Pricing: On the other side of the spectrum, consider "Stephanie". She entered the market with a clear focus on offering premium services and charged accordingly. Her prices were notably higher than the average scoopers nearby. This strategy certainly turned away some price-sensitive customers, but those who valued top-tier service were more than willing to pay. With healthy margins, Stephanie reinvested in her business, further enhancing the service quality with software and more people while expanding her client base. The perceived value of her service justified the premium price. ✅
  ​

Dynamic Pricing Strategies 🚀

Your pricing strategy can be as flexible as you want it to be. This is YOUR BUSINESS.

• Seasonal Adjustments: Spring often sees an uptick in demand after the snow melts and reveals a winter's worth of poop. Adjusting your prices to reflect seasonal demand can optimize how much money you make. ❄️
  ​
• Promotional Offers and Discounts: Consider referral discounts or first-time client promotions. They can be excellent tools for growth but ensure they don’t diminish your margins significantly. The more value you give to your customers, the more you will receive in the long run. 🤑
  ​
• Tiered Services: Offer basic and premium packages. Maybe a premium package includes disinfection or deodorizing services, a doggy biscuit, and filling up their water bowl every time you visit. Having an exceptional customer experience is one of the main reasons why a customer will stay with you forever. 🤝
  ​

Communicating Price Changes 🗣
​
​Whenever you're considering adjusting your prices, the way you communicate this change to your customers can heavily influence their reaction.

• Give Advance Notice: Springing a sudden price hike on your customers can seem inconsiderate and can quickly erode trust. Instead, provide a minimum of 30 days notice. This not only allows them to adjust their budgets but demonstrates that you value the relationship enough to keep them informed. 😊
  ​
• Offer a Grace Period: If possible, provide existing loyal customers a grace period where they can still receive services at the old rate. This gesture showcases your appreciation for their loyalty and smoothens the transition. 🙇‍♂️
  ​
• Never let a customer dictate your pricing. Period.

​

Monitoring and Adjustments 📉

Your first price point will not be your last. Adjust and adapt to what your business needs and what your market allows. The customer decides if you are not providing enough value for the price you charge.

• KPIs: Establish key performance indicators (KPIs) to continually assess the effectiveness of your pricing. If customer acquisition costs are climbing, it might be time to review your pricing or your marketing strategy. Measure how many new leads you closed and if your closing % changes with different price points. If you close 100% of new leads, your prices are too low. 👎
  ​

Your pricing strategy is a dynamic tool that can greatly influence your business's trajectory. It requires regular reviews, a finger on the pulse of the market, and an understanding of your clients' perceived value. In the pet waste removal industry, an effective pricing strategy isn’t just beneficial—it’s essential. We all have a responsibility of maturing this industry and collectively make more money.

Have you raised your prices yet? Or maybe you think your prices are too high? I'd love to hear your stories, feedback and experience (I read all replies lol). Reply to this email and let me know!!

I'll See You On The Next Scoop!

​

Tony - Poop Scoops For Noobs

P.S. - And As Always, Acknowledge The Now.

---

📰 In other news

• HOLY 💩 I'M AT 950 SUBSCRIBERS ON YOUTUBE! THANK YOU ALL FOR COMING ALONG THIS JOURNEY WITH ME. I'm going to Live Stream at 1K subs so I hope you can join!

• I released a video on Youtube called The 5 Numbers that will TRANSFORM Your Pooper Scooper Business where I break down the KPIs every small business should be tracking. Most people don't know their numbers!!! 🎥

• If you didn't know, I also offer video editing services for other businesses! If you want some awesome videos for your marketing campaigns, send me a message and let's work together! 🎥

​

📰 How I Can Help You 🤝

👉 Book a One-on-One Coaching Call​

👉 Facebook Audience Keywords List For Pooper Scoopers​

👉 140+ Before/After & Bag Display Photos for Social Media​

👉 Contract and Terms of Service Template​

---

My favorite tools to run my business 👇

Some of these links are affiliate links where I'll earn a small commission if you make a purchase at no additional cost to you.

Jobber What I used to grow to $50K+ annually as a solo operator. Start a free trial of Jobber via my link and receive an exclusive discount AND my bonus Jobber Cheat Sheet For Pooper Scoopers! I'll jump on a coaching call with you to help you get set up when you sign up for a Paid Plan! ​ *This section was sponsored

Nice Job The easiest way to get more reviews, referrals and sales. Nice Job's automated tools will share those reviews across the web and social media so you can drive more sales while spending your evenings with your family. Try for free.​

​
​Unsubscribe · Preferences​

​