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Never compete on price to win work


A few years ago I went on a sales training course learning how to sell our services to customers.

That course took my company to the next level. I'll share below, some of the concepts I learned. 

There's a reason why companies like British Gas and Help link can charge 3X the price of Bloggs.

You'll see where I'm going with this soon enough....

GBK  Mcdonalds 
Price for meal £12.99 

Price for meal £4.39

 

What is the difference between the Gourmet burger kitchen and Mcdonalds when you look at them both objectively? 

They both satisfy hunger, they both taste good, let's agree on that. 

Why do people pay 3 times as much for GBK? 

Let's write a list why most people are happy to pay so much more. 

    • GBK is trendier.
    • The food is better presented.
    • GBK has a nicer place to sit. 

I've only listed 3 things, do you see how all 3 things relate to a perception of quality, not actual quality in the product delivered, in this case, a burger and chips. 

How does this translate to winning a job like a re-wire, an extension or boiler change?

You need to show the customer you're not just going to do the 'job' as it were like Mcdonalds just does the job if you're hungry. 

Walking into a job in your work clothes on the way home, then quickly measuring up and texting 2 days later with a price is an example of 'just doing the job.'

I've written about this in detail here, if you follow this guide to the letter, you'll add another £10K to your yearly salary. 

So how do we as tradesman or trades business owners, show perceived value like GBK does over Mcdonalds, or British Gas does over Bill's boilers. 

There are 7 rules, or concepts to follow, if you follow these rules you will win nearly every job you price.

  1. Be credible - means, branded uniform, carry a clipboard, wear an ID badge.
  2. Be likeable - make friends with the customer, drink a tea with them, let them though you'll go the extra mile. 
  3. Reciprocation - give the customer something for free, usually, that's advice in trades, it could be quickly fixing a tap etc. I can't put a percentage on how much this will increase the chance of you winning the job. 
  4. Social proof - Show the customer real reviews. 
  5. Consistency is king - This is a bit of Jedi persuasion tactic, but get the customer to agree with you on a small thing, small yeses lead to big yeses.
  6. Scarcity - You're very busy, if they don't book buy this week or give you a small holding deposit, you can't do the job. 
  7. Trust - You need to offer some sort of tangible guarantee. 

Your to-do list before pricing your next job

  1. Get branded, smart uniform. 
  2. Get a decent website. 
  3. Get an ID badge. 
  4. Get shoe covers 
  5. Get a logo designed, you can do this on Fiverr. it's $5! 
  6. Improve your quotes! 
  7. Get a designer on Fiverr to create you some guarantee forms. 
  8. Have access to all your reviews, put them in a folder, or on an Ipad, go through them on every job. If you don't have reviews, get them, now!

 

The above is just an outline, if really want to understand how to win more work and get paid more for it, you need to read the below guide. 

Download it here

To summarise this post: Never compete on price, most people aren't looking for the cheapest, even if that's what they tell you. People are looking for value, it's your job to build value when you price. 

I hope this post has given you an insight into winning work and you realise there is big money to be had, you just need to position yourself the right way. 

If you liked this post and you want us to keep spreading good words, please share this with one friend! 

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