Stepping off topic for just a moment.

Who drives a volkswagen? How about a Lambourghini?

A Volkswagen can be purchased under $50000 a Lambourghini is in the $200,000 to $300,000 range. Which is better? Which accomplishes the job - after all the purpose of a vehicle is transportation, right?

I watched a documentary on the production of a Lambourghini. Then engine parts are tested at each stage of engine assembly. All the parts are tested at each stage of assembly.

Is the Lambourghini a better vehicle to get you to and from work when compared to a Volkswagen? No, they both accomplish the job.

So, why then do people respect the Lambourghini more and therefore are willing to pay the price to own one? Because of the price? No. Because of the Added Value of the Quality control? Yes.

You can ask higher prices and you can earn the business at the higher prices. As Mahlere and LK mentioned earlier, you just have to be willing to offer those little extras. Pay attention to details in the work you do. People don't buy the wires in the wall. They don't even buy the fact that it is wired properly (unfortunately, otherwise we wouldn't be competing with the likes of doofy.) They buy the look of your truck, the dress of you or your electrician, how you greet them at their door or on the telephone, how much you respect their home and their concerns. They buy the finished product - the quality of the light in the kitchen or the convenience of having enough circuits so the breakers don't trip, the fact that you and your friends can use the hot tub without worrying that someone is going to die from electrical shock.

If you are selling Volkswagens, you'll earn Volkswagen pay. If you are selling Lambourghinis you will earn Lambourghini paychecks.

The difference is in the attitude and the quality.

Why does Up Front Pricing work? Because 80% of customers surveyed are more comfortable with the knowledge of what it will cost before you start working. They don't have to sign a blank check when they agree to have the work done.

Want more information on Up Front or Flat Rate Pricing, check out this link: http://www.serviceroundtable.com/Freebies/FreebiesDetails.asp?PCID=109

I have mentioned before the formula for running a successful business. The formula only allows you to cover your basic needs - it represents what you "NEED" to sell your services for in order to succeed and make your profit goals.

But, why should you settle for miniscule profits if you have the skills and knowledge to earn more substantial profits. I have work for and work with even now contractors who are happy to make a living.

Is that the goal of taking on the headaches of running a business? Of taking on the responsibility of having employees? Of trying to make sure that your employees and families are taken care of through a decent level of pay and a benefit plan? Do you want to take on that responibility to just make a living? Or did you want to do better for yourself.

Earning a better than average profit isn't a right, but it is a priviledge offered to those who take care of their customers. Who take care of their employees and the employee's families.

Ask youself - Am I selling Volkswagens or Lambourghinis? If you are selling Lambourghinis command your prices - but take care of the details. Systematize the business, streamline operations and train employees. Offer your clients what they want, not what you think is right (and no I am not advocating doing things that are wrong.) Provide Good Lighting not adequate lighting... Quality service don't act like your service is something that the customer has to have... show them why they want you to take care of them... show them why your services are worth the price.

As the Quote says "If you think you can or you think you can't - you're right!"

Decide which market you want to be in. If you are happy servicing the masses for a small profit - Great! Look how well that works for Mc D's! If you want to do less projects but command higher profits - Great! Look how that worked for Rolls Royce, Lambourghini and Ferrari!

You have a choice, you just have to make it and then follow it up with the service levels you choose to meet your goals.

Glen


[This message has been edited by ExpressQuote (edited 07-12-2006).]