A little video here from @pbplumber really got me thinking! Its an issue i've seen and had happen to my self time and time again. Until one day i woke up a realised and though about the situation.
More on this part further down.
Key factors when giving a price.
- Understand your business costs
- Never let a customer dictate your price because you are able to do the job quick, clean & efficiently. (this has taken years and the customer needs to understand they are paying for 5-10 or even 20 years its took you to be so good.
- Trust your self and understand your value
- Be clear and transparent about everything don't fight for a customer but be fair and honest.
- Have a greater understanding of your market including area, prices, talk to other trades get on the same page with others.
- Don't directly compete with each other you will only pull each other apart.
- Where possible work together help each other and grow a bigger community ( we can do things alone! but how has Facebook, instagram done what they have? they are not alone.
The 2 prices options (CHEAP)
The option that gets to us all! is why do people do it so cheap how do they do it so cheap? The fact is cheap only buys their time for a short period. Meaning they need more cheap jobs (this is something thats always going to be there) Let's face it when we started out we wanted to win every job and it always looked like we was earning. The fact is we was the busy fool chasing money not earning it.
Saying this now we still like to win every job, but why be busy because we need enough time to spend our money as we do to earn it. Being rich in my head means i'm in control of why i have spare time. I have days off when i decide i want to have a day off. My work does not dictate my life but it is a huge part of it, for this reason i have to be happy at work and on my days off. It's a balancing game we only become the master with time and under standing.
- Short lived you are being a busy fool
- At times things become price relevant but it should never be to win work
- give loyally customer a discount understand how much value you give each other.
A realistic price for the job in hand (NOT CHEAP)
So the fact is, OK we are not cheap! but let's look at some of the question and facts we are going to deal with that a cheap price is not going to cover.
- Fitting a job around a work load ( we have worked hard to get to where we are and we will always do all we can for a loyal customer)
- For us to do the job in a quick time professional manner we do buy the latest tools, yes its my interest/hobby. Do you moan when you are paying £100 for a ticket to football for 90 minutes, everything has a value.
- I would like to think we have been doing it long enough to understand our pricing structure.
- Our living might be different to someone else, this is a usual reason for a clash. Tune in to your customer base don't get lost in work. Some customers suit what we offer and some customer don't its a fact. If we could sit and explain our situation everyone would be our customer, unfortunately time is money.
MORE TO FOLLOW ON THIS ONE!! Thanks to @pbplumber
I think we can all learn a little with pricing jobs, i'm not saying things need to be price fixed but we do need to have a area of agreement, by understanding trades people in our area and under standing our market.
19-02-2023
In the construction industry, pricing is a crucial factor that can make or break a business. Many contractors struggle with finding the right balance between offering competitive prices and ensuring that their business is profitable. However, it's important to understand that pricing is not just about winning jobs, but about building a sustainable business.
One common issue that contractors face is the pressure to offer cheap prices to win jobs. While this may seem like a good idea in the short term, it can ultimately lead to being a busy fool. Offering low prices may attract more customers, but it won't necessarily lead to a sustainable business. It's important to understand the true cost of doing business and to price services accordingly.
Another important factor when giving a price is to trust yourself and understand your value. Don't let a customer dictate your price based on how quickly you can do the job or how efficiently you work. It's taken years to build your skills and expertise, and customers should be willing to pay for that.
Being clear and transparent about everything is also important when giving a price. Don't fight for a customer, but be fair and honest. Having a greater understanding of your market, including area and prices, is also crucial. It's helpful to talk to other trades and get on the same page with others. Don't directly compete with each other, as this will only pull each other apart. Instead, work together, help each other, and grow a bigger community.
Ultimately, finding the right pricing strategy takes time and experience. Contractors should aim for a realistic price for the job at hand, rather than offering cheap prices that won't cover the true cost of doing business. By understanding the value of their services, contractors can build a sustainable business and provide customers with high-quality work that's worth the price.
