Don’t focus on being the cheapest! There is always someone who is willing to do the work cheaper than you. A lot of companies find themselves competing on price like it is the only thing your potential clients are thinking about, but in fact, your clients directly link a high costing product/service with quality.
We have seen hundreds of businesses undercharging for their work and barely making it though, this is a trap, once you lower your prices you will struggle to bring them back up, you will just keep lowering and lowering until you can make ends meet.
So why do businesses undervalue their work?
“I would not get as much work”
You can easily work less and still receive the same amount of profit. This means less stress, fewer jobs and the job at hand receives a higher level of work.
“I am not sure that my work is worth that much”
Imposter syndrome is the internal experience of believing that you are not as competent as others within your industry, this happens to everyone and is a normal emotion. The best way to fix it is to realise it exists and to believe in yourself.
“I am paying the team so I need work”
Probably the most common reason for taking a job.. we have heard some horror stories where construction owners have taken a job and making virtually no profit just so the men are being used. This is a slow vacuum on your business and if you are in this position you need to reduce your team/put some on part time until work picks up or start advertising/looking for larger projects where you are using your team and making good profit on jobs.
Failure to realise that prices are too low will result in problem clients finding you. Your prices reflect your value and expertise within your industry. If you undercharge your services you are sending the direct message of what your services are valued at.
Thinking you will get more clients with a cheaper service is a straight path towards disaster, you will see that people who are cheap / underpay you are often the ones who do not see the value in your work and will end up constantly belittling you, refusing to show respect and so on.
How do I charge a higher price for my services?
1. Understand the quality that you deliver and charge the price that your work is really valued at.
2. Charge for the experience and education you have gained over the years, not the cost of materials.
3. Overcome any mental blocks that are making you believe that you are not “worthy”
4. Focus on other marketing mediums other than word of mouth.
5. Develop stronger boundaries and self-respect. Learn the art of saying “No” - Know what your time is worth and respect that.
6. Start taking on high-quality clients only.
Get in touch with your business development manager today if you want to talk about your pricing!
PS. Whenever you are ready, here's how to grow your construction business...
1. Join our Facebook Group which built completely for businesses within the construction industry. Real people, real support. - Now also available on LinkedIn.
2. Keep up to date with Construction Insider Providing you with industry insight, tips & tricks and much more to make sure you are ahead of your competitors!
3. When you are ready, Become a Saint Financial Group client, and we will provide you with the highest quality solutions to effectively scale your construction business. Book your meeting here!