There are only three ways to put more NET profit in your pocket- A) cut your expenses, B) book more work OR C) make more money from each job. Even better, do all three!
But my winner for the quickest, easiest Route to Riches is “C”: Make More Money From Each Job! So for the next ten weeks I’ll be counting down my TOP TEN! Drum roll please for #10 of the “TOP TEN Ways to Make More Money From Each Job”!
More Money Concept #10: Charge more!
Well, duh! But wait- did you set your prices like I did in the beginning? You “called around” and then charged LESS than the “going rate”! Do you really want to make LESS money than your competitors? SERIOUSLY???
In our SFS: Business Transformation Chuck Violand teaches “Pricing for Profit” based on the true cost of doing business. (You will be shocked!) But my “short-cut pricing method” was “Steve’s Point of Pain Pricing Test”. If my prospects routinely gasped, “Ouch! That is a lot more than I paid the last guy! But my friends all say you are worth it …”
Bingo! Remember, THERE IS NO VIRTUE IN POVERTY! (Trust me, most previous clients will never comment on your new higher prices.) But what if you get hit with the common “smokescreen price objection” as in: “I don’t know … let me check with my husband and get back to you.” Simple! Just immediately reply with this week’s TOP TEN TIP #10:
“I understand, Mrs. Jones. But while I’m here let me ask you- does the way I have this work order written meet your projected budget?”
Once Mrs. Jones admits: “Well, it IS a bit more than I was expecting” you can start whittling away at the scope (Such as cleaning only the “open areas” instead of moving the furniture, etc.) until she says, “That sounds OK.” Great! “Charging more” means you’ll be Making More Money From Each Job!
P.S. Next week’s TOP TEN “Make More Money From Each Job” Concept #9: “Travel smarter”.
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