Holey Moley! Shows Us How Pricing Supports Branding

Marketing

Sep 19

*Ken at Holey Moley differentiates his brand through pricing; in addition to his great service and down-home feel.*

I live just south of Portland, Oregon, in West Linn. Although it is a suburb, it is still quite rural and full of nature. My wife, kids, and I love living in a place full of critters, but this also means dealing with all types of rodents.

This summer, we have dealt with moles seeking their daily body weight in food under our lawn. Every morning, two to three new mounds appeared. To address this, I consulted the West Linn Community page on Facebook, which is full of recommendations from residents about service providers.

While searching for a mole trapper, one business was recommended more than any other: Holey Moley, run by Ken. People praised Ken for his punctuality, friendliness, and effectiveness in handling the mole problem. Intrigued, I called Ken.

Ken started Holey Moley after retirement while looking for something to do. He started trapping moles for his friends and family, and then a family member suggested turning it into an official business if he enjoyed it. Thus, Holey Moley was born.

Ken's business has grown and sustained itself purely through word-of-mouth. He carries his traps in the back of his well-loved Chevy and drives to a couple of appointments daily, placing new traps and checking the ones he has set.

The Bizarre Holey Moley Pricing Model

It costs $198 for him to come to your house to set traps (good for 70 days), and then $43 for each mole captured. He only accepts checks, which confused me when it came time to pay him. I had to ask him several times what the last number was. "Ken, is it $48 per mole or $45? I cannot keep it straight."

When I asked Ken how he chose his pricing, he responded, "You know, pricing it just under $200, supposed to be good for marketing."

I followed up, asking why he didn't make the last number the same to make it easier to remember. For example, why not $195 and $45?

Ken replied, "Dunno, it's just what I did."

As someone who loves helping small business owners, I've been pondering this for some time. Pricing is critical to get right, and Ken did the right thing by keeping it just under $200. However, the confusion between numbers and their incongruence is a potential issue to consider.

When Pricing Is Branding

Finally, I realized that his somewhat confusing pricing is unintentionally but effectively part of his brand. He is a friendly, retired local guy who is referred through word-of-mouth, and he only accepts checks. He is not some large company where the customer is anonymous. This is why people who use him continue to do so and refer others to him.

If he were to price his services at $195 for an "episode" and $45 per mole and accept credit card payments, he would move closer to becoming more like all the other pest businesses, and hence less memorable. And from what I can tell, this is working great for him. His business is the right size, and he can handle his workload.

What About You?

Consider what your pricing says about you and your company, and whether it conveys the message you want to send. Does your pricing make you stand out or fit in?

In this crowded world, you want to stand out. Pricing is one way to differentiate yourself, but you should only use pricing that is a little different if it fits with your brand and makes sense, not just for the sake of novelty. This requires strategic thinking or like Ken you just landed on it and it works.

Let's have a Coffee Break and figure out if you are a Ken or have loftier business goals, and then find the right prices for your business services or products that support your brand goals.