Can you think of a time when you met with a prospective customer for a potential roof replacement? The meeting’s going great. They’re engaged and seem to be ready to buy. Then you give them your price and they say, Well, I can get the same job for less from XYZ Roofing. Many times this leads to either a back and forth that you just can’t win, or you simply thank them for their time and leave.
Losing jobs this way is painful, but it’s also unnecessary. You can charge more than the competition considerably. But there’s some things that contractors do or don’t do that prohibit them from doing so. Before we cover these issues, there’s something that needs to be clarified. This video was not created to encourage anyone to take advantage of the homeowner by price gouging them.
But the reality is most contractors don’t charge a price for their services that affords them to offer wages that attract top talent, health benefits, paid vacations, and holidays, or make a respectable profit for the. Our hope is that contractors who desire to operate a successful company that affords benefits like these can use this information.
Reason number one, you haven’t identified why you’re worth more than the competition. It’s pretty difficult for the consumer to understand what makes you different and better than the competition. If you and your team don’t know either, we ask our clients all the time, what makes them different and better than the.
The replies are usually things like, Well, we care more. We’ve been in business since whatever time, or we try harder. The problem is that your competition, they’re saying the same exact thing. In order to be worse, more, you have to offer something different and better, and even when you do, it may not help unless you take care of number two.
Number two, you don’t know how to effectively communicate what makes you different and better. You’ve probably heard the question. If a tree falls in the woods and no one’s there to hear it, does it make a sound? If you don’t properly communicate the value of your unique benefits and how they could be enjoyed by the homeowner, then it’s like you already even performing the service at all.
This is something we see very often. Contractors painstakingly go out of their way to provide services while doing the job, but because they didn’t build value in those services during the sales process, the homeowner has no idea that they’re even. The sad thing about it is if they did communicate these things, there’s a strong likelihood that the homeowner would’ve been willing to pay more for the job.
Number three, you don’t know your financials. Most contractors have this crazy way of determining the prices, you know, the way where they find out what the competition’s charging and then set their prices the same or maybe even a little less than them. Can you imagine a Fortune 500 company operating this way?
Successful contractors don’t let the competition determine their. Their costs overhead and required net profit due. When you clearly understand the accurate costs and expenses in your operation, something magical happens. The numbers don’t lie. And when you know what you must achieve, you find the courage to confidently ask for it.
Number four, you aren’t worth more than the competition. Apologies if this comes off kind of harsh, but when it comes to business, you can’t afford to be. The sad truth is that our industry is filled with well meaning, but poor operators of their business. Just like any company that offers a product or service, your value is determined by the quality of your offering.
That’s why there’s a Texas Roadhouse and a Ruth Chris, a uh, Walmart and an Nordstrom. They’re a high end and low end companies in every industry. The difference is the quality of the product and the customer. Experie. Now you may not spend your money at the high end stores and restaurants, but that’s really not the point.
The point is that there are ample amounts of people who will spend more on quality. Those people typically have access to money and credit. Whether times are good or bad. If you wanna thrive, regardless of the economy, investing in the quality of your service might give you the best return of all. So those are the four reasons you hear.
I can get the same for. Our hopes are that after learning the four reasons you’ve identified one or more opportunities to tackle and solve in your business forever. If you might like a hand or like to explore how roof coach might assist with these or other issues you’re facing, click the button on this site and schedule a call.