Prior to a recent webinar, we conducted a brief survey.
One of the questions we asked was whether participants had cut their markup / margin to try and attract more work. About 74% of the respondents said they had not cut their prices, 26% said they had. Oh my!
We assume that the contractors who attend our webinars are those who want to continue in business and make a profit, so why would they cut their price to get a job?
There are two things causing most of the problems contractors now have: 1) Contractors are not doing a good job of advertising and promoting their business and 2) they are cutting their prices to get jobs.
Cutting your price to get work is a step toward the demise of your business. It is financial suicide. If you are cutting your prices, let me ask – have you noticed other contractors around you going broke?
This has been and will continue to be a very lucrative business if you run your business like a business and not like a hobby. If you are not making money, that is a warning sign that you need to make changes.
If you want your business to do better, give us a call. We want to see you become profitable.
Listen to the experience of one of our long-time coaching clients.