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Construction Programs & Results Inc

We Like to See The Good Guys Win!

Knowing What You're Worth

by Michael Stone

I got a note from a young guy the other day that was an absolute priceless gem. The short version of his email said that he had finally come to realize what he was worth to his clients. As a result, he now quotes a price for a job to his client and says to himself when he does, "This is not my best price, this is my only price."

Accepting that principle as a contractor is a huge step in your development as a business owner. Unless and until you believe that in your heart, you will always be tempted first to worry about your price and secondly to cut your price before you quote the job. Even worse is cutting your price after your initial quote, which in almost all cases will destroy your credibility with your potential customer.

If you have done a good job of estimating the job, and you know what your overhead expenses are and what you want to make as profit on the job, then there simply is no place to cut your quote. Again, until you believe this principle, you will always have that hobgoblin hanging over your shoulder and more often than not, the customer will pick that up. Sales is attitude, attitude and attitude. Your attitude towards your worth and what you should charge for your service will go a long way in determining your success in this business.

Comments

Hi Betsy,
Thanks! I'm glad you got some value from that.What kind of work do you do?

Betsy Harper (not verified) /

THANK YOU PETER!!!! I so needed that quote! I have been kicking myself all morning over a bid that three days ago the husband said looked good and two days ago the wife said was $3,000-4,000 too high and yesterday said was $10,000 too high! She has other things she wants to buy, so she's going to bid it out herself. It was a good bid that would support my family and meet their needs. I don't owe her an apology, and you reminded me of that!

B Mac (not verified) /

That simple line of "This is not my best price it is my only price" is powerful.

Peter (not verified) /

I had a GC ask me to lower my price to shingle his new house by 50 %.I said "sure, which half do you want shingled?"

 

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