ECN Forum Forums General Topics of the Trade Business Related Discussion How do these guy's do it ?

Thank's guy's.

Got a call today to wire an attic fan. The fan was already installed. The swamp cooler was removed and central air installed.

The guy said the old swamp cooler wire should be able to be used for the attic fan.
He said he just got off the phone with my competitor and said he was quoted a minimum of $50 and a maximum of $80 to do this job.
Was told the job would take no longer than a 1/2 hour to 1 hour to complete.

I guess I'm supposed to beat this price?
I'd like to know how these guys do it.

I can't imagine driving a 1/2 hour to get to the job being able to complete the job in a 1/2 hour and spending another 1/2 hour driving back for $50.

To top it off the guy said he didn't get home from work until after 5:00pm so he needed someone out after that.

Maybe I'm slow but I have yet to be able to spend time talking with the customer, do the job, clean up properly and fill out the paper work in a half hour.
Then there's the paperwork to do back at the office.

Maybe I should open up a hot dog stand.

Your welcome, anytime....

HCE,

around all of the posturing, do you have any better understanding of how other companies charge the rates they do?

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).]

I hesitate to get involved again, but I feel the need...

Ripped jeans and dirty vans versus uniforms and shiny vehicles, & Lamborghinis versus Volkswagens are more examples of logical fallaciles (false dilemnas), which is a typical tool of any salesman trying to convince an irrational prospect. There is an infinite combination of "in-between" scenarios.
How about comparing clean jeans and collared, logo'd t-shirts, and decent looking, early model service trucks to "crisp" uniforms and brand new, lettered vans ; or comparing a Chevy to a Ford.
If you need to use a Lamborghini to make a point, why not compare it to a Ferrari instead of a Volkswagen?

Decide which market you want to be in.


Redsy,

You are right, there are an infinite number of possibilities in between.

The point is to clarify a decision making process. The easiest way to explain a difference is to show as dramatic a difference as possible, for clarity.

The point that I was trying to make is that there are many levels of success... and it is up to the individual to choose where he or she wants to be and then to ensure that they fit into their chosen market.

As I said, I have worked for contractors who just want to make a living and I even have clients now who have that as their goal. But for those who aspire to higher goals, they have that right also.



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

because the question wasn't "how do these guys get $10 more than me?"

HCE wanted to know how the other company was able to charge 2-3 times his rate.

you can use a chevy or a ford. you can even use a mercedes or jaguar. but none of them will sell for as much as a lambo.

so the point was, unless you sell the lambo, you won't get the lambo money.

you can dress up a chevy/ford/etc all you want, but at the end of the day, you will only get chevy/ford/etc money.

good luck and good analogy express quotes.

Who does this? Who walks into a customer and says "just give me a blank check, I'll tell you what it costs when I'm done". Come on. And the customer says "oh, ok.."
Most If not all EC, give a customer a price upfront, based on different conditions. Just most of us don't use a "one size fits all" book.

Funny how they advertise crisp clean uniforms, but I've seen these 18yr old kids looking like "ragamuffins". Half a shirt hanging out, belts too long for their waists. Long sleeve shirts rolled up to thier shoulders. Not all of them mind you, just the guy me and HCE are referring to.



Exactly! And know what that market consists of.


Once again, and excellent statement.


Key word is "ensure". You have to find a way to have a competitive edge in the market place. Whether it be fancy advertising gimicks, or price, or any combination of a bunch of factors. You have to ensure your business's survival. And growth....


You won't get an argument there. Well written 2nd post!!


I agree with Redsy on all these farse comparisions. They make no sense....

[This message has been edited by Dnkldorf (edited 07-13-2006).]

Heheh, when I first read thread I thought it was more like, "how can they be that cheap"!