Stop Bidding with Your Money
When bidding on jobs, a lot of contractors make the mistake of "bidding with their money." People who work as workers often guess what their clients are willing to pay based on how much money they have.
Here are the most important things you should remember and what you can do to avoid this usual mistake.
Key Points
Understanding Client Value: Contractors often underestimate what clients are willing to spend based on their own financial beliefs. If you wouldn't pay a certain amount for a service, that doesn't mean your client won't either. For example, if a customer wants a high-end wrought iron fence that costs $30,000, you should respect that they may be able to afford and want that level of quality, even if you don't agree with them.
Avoiding Self-Sabotage: Many contractors bid against themselves by giving clients cheaper choices based on what they think the clients can afford. In this case, clients might not get the best solution for their wants, which is bad. If you know that a more expensive choice is the best one, you should present it instead of going with the cheaper one because you don't want to lose the job.
Recognizing the Importance of Quality: Clients often choose quality over price, even in places with less money. The host of the show talks about a homeowner in a bad neighborhood who had put a lot of money into their home. This shows that you should never guess about a client's finances just by looking at where they live. Instead, you should look for people who value good work and are willing to pay for it.
Pricing Strategy: It's not your job to find a price that clients will pay, but to find clients who are willing to pay your price for good work. When you charge more, you set yourself apart from your competitors. This can help you get better customers and be seen as more valuable.
Overcoming Limiting Beliefs: If you find yourself saying, "I don't think they'll pay that much," it means you need to rethink how you set your prices. This way of thinking can cause you to miss out on chances and make less money.
Action Steps
Reassess Your Pricing: Take a close look at your pricing structure. Are you undervaluing your services based on your assumptions? Consider conducting market research to understand what clients in your area are willing to pay for quality work. Adjust your prices accordingly to reflect the true value of your services.
Communicate Value to Clients: When presenting options to clients, clearly communicate the benefits of higher-priced services. Explain why certain solutions are necessary for achieving the best results. Use examples and case studies to illustrate the long-term value of investing in quality work.
Shift Your Mindset: Challenge your limiting beliefs about pricing. Instead of assuming clients can’t afford your services, approach each sales call with the mindset that every client has the potential to be a good fit for your business. This shift in perspective can help you present your services with confidence and attract clients who value quality.
By implementing these strategies, you can stop bidding with your money and start valuing your services appropriately. Remember, your goal is to find clients who appreciate the quality of your work and are willing to pay for it. Embrace the mindset of providing value, and you’ll not only improve your business but also enhance the experience for your clients.
Resources
Grab Brad's tell all book: The Contractor Profit Blueprint
https://thecontractorprofitblueprint.com
Visit our official website:
www.thecontractorprofitblueprint.com
