FCPWLLC
Senior Moderator
This was part of a newsletter I get.... Thought it was insightful....
Selling Price
Too many contractors do not charge enough for their services. They try to identify the "going rate" and charge accordingly. Since 90% of those in business today will close their doors within 5 years, the "going rate" is really the "going broke rate".
A business owner must identify his own individual financial needs and goals, and charge accordingly. This may require significant changes within the business.
Charging higher prices requires offering more value than your competitors, and then communicating that value to your customers. That value can take many forms-- taking credit cards, using higher quality products, improving your customer service, and much more.
When two companies look the same-- that is, offer the same value-- the customer will usually go with the lower price.
At the same time you will likely need to improve your sales skills. It is not enough to offer more value. That value must be communicated, both explicitly and implicitly.
Selling Price
Too many contractors do not charge enough for their services. They try to identify the "going rate" and charge accordingly. Since 90% of those in business today will close their doors within 5 years, the "going rate" is really the "going broke rate".
A business owner must identify his own individual financial needs and goals, and charge accordingly. This may require significant changes within the business.
Charging higher prices requires offering more value than your competitors, and then communicating that value to your customers. That value can take many forms-- taking credit cards, using higher quality products, improving your customer service, and much more.
When two companies look the same-- that is, offer the same value-- the customer will usually go with the lower price.
At the same time you will likely need to improve your sales skills. It is not enough to offer more value. That value must be communicated, both explicitly and implicitly.
