04/13/2024
CONVERSATION ABOUT PERCEIVED VALUE:
A customer asked a contractor me how much it would cost to do this project. I gave him a proposal: $4500
Customer: That’s seems really high.
Me: What do you think is a reasonable price for this job?
Customer: $2500 maximum
Me: Ok, then I invite you to do it yourself.
Customer: I don't know how to.
Me: Alright, then how about for $2500 I'll teach you how to do it. So besides saving you $2000, you'll learn valuable skills that will benefit you in the future.
Customer: Sounds good! Let’s do it!
Me: Great! To get started, you are going to need some tools. You will need a chop saw, table saw, cordless drill, bit set, router, skill saw, jig saw, extension cords, tool belt, pencils, razor knife, hammer, tape measure, speed square, level, ladder, air compressor, air hoses, couplings, nail guns,.... etc..
Customer: But I don't have any of those tools and I can't justify buying all of these for one job.
Me: Ok. Well then for an additional $500 I can rent my tools to you to use for this project.
Customer: Okay. That’s fair.
Me: Great! We will start the project on Monday.
Customer: I work Monday through Friday. I’m only available on the weekends.
Me: If you want to learn from me, then you will need to work when I work. This project will take 3 days so you will need to take 3 days off work.
Customer: That means I’m going to have to sacrifice my pay for 3 days or use my vacation time!
Me: That’s true. Remember, when you do a job yourself you also need to account for unproductive factors.
Customer: What do you mean by that?
Me: Doing a job completely from start to finish includes time spent to draw up the project plan, put together a material list, estimate labor for the project, pick up materials, travel time, fuel, set up time, demolition, clean up, material storage, and waste disposal amongst other things. That’s all in addition to the actual project itself. And speaking of materials, that’s where we will start on Monday so I need you to meet me at the store at 6:00am.
Customer: At 6am?!! My work day doesn’t usually start until 8am!
Me: Well then you’re in luck! My plan is to start on the deck build at 8am. But to do so we have to get up at 5am, to leave home by 5:30am to get to the store at 6am, to have materials pulled, paid for, picked up, loaded, and not only safely, but promptly delivered to your job site by 8am.
Customer: You know, I’m realizing that a lot more goes in to a job than what a customer sees in the finished project. Your proposal of $4500 is very reasonable. I would like you to handle the project, please.
CONCLUSION:
When you pay for a job, especially a custom job, (whether it’s a physical project or technical project) you not only pay for the material and the work to be completed. You also pay for:
✔️ Knowledge
✔️ Experience
✔️ Custom Skills
✔️ Tools
✔️ Time to plan
✔️ Time to prepare
✔️ Professionalism
✔️ Work Ethic
✔️ Excellence
✔️ Discipline
✔️ Commitment
✔️ Integrity
✔️ Taxes
✔️ Licenses
✔️ Sacrifices
✔️ Liabilities
✔️ Insurance
If you request a proposal for custom work to be done, please don’t disrespect a service provider by trying to get them to lower their prices.
If their proposal exceeds your budget, there’s nothing wrong with getting other proposals.
Just remember.. you get what you pay for.
👉🏼 SERVICE PROVIDERS: Know your worth and be confident in it.
👉🏼 CONSUMERS: Recognize their worth and be respectful of it.
Sharing this to support all my friends, family and clients who are Entrepreneurs, Business Owners and Tradesman.
Same with Tool and Equipment Rental.
Think about it then get back with me.
