The pricing strategy for most contractors looks like this…
- Look at the marketplace
- Figure out what everyone else is charging
- Go slightly below it to remain “competitive”
- End up with a value proposition of “same for less”
Which is sadly why there are thousands of Aussie contractors out there that are unprofitable… a slave to their business… seeing zero return for their efforts… and leaving the industry…
The reality is, if you want to build a successful trade business, you need to stop doing this and increase your prices.
Well, it’s a simple concept…
Perceived Value MUST be greater than price.
You can’t increase your price without increasing the perceived value of your business and service through better marketing and sales infrastructure...
There’s a negative disparity in the price you’re naming versus the value that customer thinks they’ll get if they were to go with you.
It doesn’t matter if you deliver a great service or not; the customer doesn’t know about it, so they’ve perceived the value of your service from the front-end to be low!
That’s why you need to master the game of marketing, sales and pricing… (or what we call ‘The Holy Trinity’)
This is where you actually invest time and effort into building premium front-end marketing and sales infrastructure.
Until you start prioritising marketing and sales in your business to try and position yourself as the premium contractor, you’ll remain stuck at the ‘going rate’!!!
If you're an electrician, plumber, painter, carpenter, or any other trade business owner who is looking to take their business to the next level, click here to learn more about how our team can help!