In this episode of “Bella In Your Business”, Bella discusses whether you should still offer overnights if you have to pay per hour? This is a hot topic because during this election year many are talking about raising the minimum wage, in some places as high as $15/hour. In California, not only is the minimum wage being raised but they are mandating sick days and other things which are really going to cost businesses more and more money.
Education is Key to This Decision!
Bella emphasizes that you really need to educate yourself on the legislation in your particular state, what risk that implies for your business, and what it will cost your business to comply. She says she really wants you to focus on the right team members (bookkeeper, CPA, lawyer) and to reach out to your state’s Department of Labor. Learn as much as you can and then make your own educated decision. Don’t listen to everyone on Facebook or your competitors! Just because someone else elects to take one action doesn’t mean it’s the right one.
So, should you still offer overnights? The easy answer for some will be no because they figure if they have to pay someone $15/hour for 8-10 hours, they would have to charge at least $200 for an overnight and they believe their clients would never pay that. Bella points out, that could mean you are automatically giving up (what is on average) 20% of your revenue. In short, she recommends that you still offer overnights even if you have to pay per hour.
Put it on your website (with or without the price) and make sure you price it according to the 30/30/40 rule (30% for the business, 30% for you, and 40% for wages). Just be aware of what happens when you get to 40 hours (another great question to ask your state’s Department of Labor).
Remember, you don’t get to decide what is too expensive. Your clients do. If a client does tell you it is too much, simply explain why it is that high. Then offer them a less expensive alternative like 3 visits a day. Let them know that it will probably be alright but if they feel that still isn’t enough then they could try the overnight option.
How To Sell Overnights:
Bella points out that if you don’t at least offer the option then visitors coming to your site looking for that option will “bounce” over to another service’s site. Leave it on there. Keep them on your site. Engage them in a conversation giving them the reasoning and statistics and let them make the decision.
Another question to ask your state’s Department of Labor is whether or not you are exempt from the minimum wage due to the Fair Labor Standards Act (FLSA) which states that people who make less than $500,000 don’t have to adhere to it.
Add More Value:
You could also consider additional value for these overnights like perhaps sending video and photos. You might include things like taking out the trash and/or sorting the mail. Add value to the overnights and make them exclusive benefits. Any of these additional values can help make a client feel better about spending the money.
Bella points out that in reality most pets are perfectly fine sleeping by themselves and that the real benefit offered in overnights is making the client feel less guilty about leaving their precious pet. So let’s appeal to them and keep offering this service. Because if you don’t you have no idea just how much money you might be leaving on the table and walking away.