When it comes to pricing, lots of business owners get stuck in a race to the bottom.
There are always going to be people around who will do the job cheaper.
But that doesn’t mean you should devalue your service simply because others are dragging their own value down.
15 years ago back when I ran my cabinet making company, my prices were sitting at the top end of the market.
In an industry where people shop on price, this could’ve frightened me into squeezing my margins tighter and sacrificing income for fear of losing sales.
But I took a different path.
When quoting clients, I’d simply be honest about it.
“I’m not the most expensive, I’m not the cheapest but I’ll give you the best job”
You will be able to find plenty of people around who will do the job cheaper than us. But I’ll do the best job possible for you.
I said this in the spirit of honesty, which is simply one of my personal values.
But what I realise now, is that this honesty helped me in a MAJOR way.
Firstly, these people would go out and get other quotes. (Naturally)
When comparing all their quotes, they’d find that mine sat in the middle range price-wise.
Just where I said it would.
Which means that even before I was hired, I was already proving my honesty.
In their subconscious minds, these leads were thinking ‘he’s a genuine guy’.
In a world full of empty promises, this consistency started building trust immediately.
I think this is a major reason we won 80% of the quotes we sent out.
Even though there were bigger, flashier businesses competing against me.
Even though there were plenty of ‘dad operations’ who consisted basically of one or two guys who would work for peanuts.
Look, you can say ‘I’m honest, I really care, I will do a great job’, until the cows come home.
Saying is one thing.
PROVING it through your behaviour is another.
Demonstrating your values is far more effective than simply paying lip-service.
Don’t just say you’re reliable. Be prompt to the minute with calls, visits, and deadlines.
Don’t just say you work fast. Pad your timings so you deliver on job milestones a day earlier than scheduled.
Don’t just say your work is the best. Offer them the phone numbers of 3 of your most raving fan clients to hear it from the horse’s mouth (with your clients' permission of course!)
Look for ways you can demonstrate consistency between what you say and what you do.
It’s the strongest way to build trust.