I think I've kept my prices low because it is easier to do that rather than raise my prices and have to learn to become a better salesman.
I think most people (myself included) starting out think they need to keep their prices low so they can get the jobs but I think the reality is that you need to become better at selling.
I really need to become a better salesman so I can raise my prices and still sell jobs.
I would like to have a net profit of over 10%
I think I read somewhere that the average electrical contractor's net profit is less than 5%
Does anyone have any statistics on this?
I don't think I would call anyone a crook no matter how high his price was. If he can sell that job at his price over mine than I would call him a better salesman.
On the other hand the low baller isn't using any sales skills to get the job. He is trying to get the job based on price alone.
I think some people want the absolute best job they can get and so whey pay the highest price assuming they will get the best job.
Others just want to get the job done as cheaply as possible so they go with the lowest price.
I would think that the majority would go with a price somewhere in the middle of the low and high price but I think how you present and sell it to the customer will be a big factor in this.
