A Conversation About Perceived Value
Robin Waite
Business Coach ?? Podcast Guest ?? Keynote Speaker ?? Bestselling Author of Online Business Startup and Take Your Shot - Ask me for a free copy of Take Your Shot. Group and 1-2-1 Coaching. Breakthrough Sessions
I feel this is worth sharing...something I see a lot of...
A CONVERSATION ABOUT PERCEIVED VALUE:
A customer asked a contractor how much it would cost to do this project.
The contractor gave him a quote: ￡4500
The customer responded: That seems really high.
The contractor asked: What do you think is a reasonable price for this job?
The customer answered: ￡2500 maximum
The contractor responded: Ok, then I invite you to do it yourself.
The customer answered: I don't know how to.
The contractor said: Alright, then how about for ￡2500 I'll teach you how to. So besides saving you ￡2000, you'll learn valuable skills that will benefit you in the future.
The customer answered: Sounds good! Let’s do it!
The contractor responded: 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, tool belt, hammer, etc..
The customer answered: But I don't have any of those tools and I can't justify buying all of these for one job.
The contractor responded: Ok. Well then for an additional ￡300 I can rent my tools to you to use for this project.
The customer answered: Okay. That’s fair.
The contractor responded: Great! We will start the project on Monday.
The customer answered: I work Monday through Friday. I’m only available on the weekends.
The contractor responded: 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.
The customer answered: That means I’m going to have to sacrifice my pay for 3 days or use my vacation time!
The contractor responded: That’s true. Remember, when you do a job yourself you need to account for unproductive factors.
The customer answered: What do you mean by that?
The contractor responded: Doing a job completely from start to finish includes time spent to plan the project, pick up materials, travel time, gas, set up time, clean up, 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 lumberyard at 6:00am.
The customer answered: At 6am?!! My work day doesn’t usually start until 8am!
The contractor responded: Well then you’re in luck! My plan is to start on the deck by 8am. But to do so we have to start at 6am to get materials picked up, loaded and delivered to your job site.
The customer answered: You know, I’m realising that a lot more goes into a job than what a customer sees in the finished project. Your quote of ￡4500 is very reasonable. I would like you to handle the project.
CONCLUSION:
When you pay for a job, especially a custom job, (whether it’s a physical project or digital project) you pay not only for the material and the work to be completed.
You also pay (get paid) for:
If you request a quote for custom work to be done, please don’t disrespect a service provider by trying to get them to lower their prices.
If their quote exceeds your budget, there’s nothing wrong with getting other quotes.
Just remember.. you get what you pay for.
SERVICE PROVIDERS: Know your worth and be confident in it.
CONSUMERS: Recognise their worth and be respectful of it.
Sharing this to support all my friends, family and clients who are Entrepreneurs, Business Owners and Tradesman.
Charge your worth, people.
Stay Fearless!
PS - I did not write this but had it saved in the past and wanted to share, I just can't find the original author to quote them. If you know them let me know, it’s one of the best explanations of perceived value I could find.
BACP Accredited & trauma trained counsellor (EMDR) supporting professionals with their mental health during workplace disputes, grievances & disciplinary hearings. Specialist in supporting Blue Light personnel.
2 年Love this! It’s so true that often the seen part - the outcome is what is quoted not all the hidden elements in the background to make the outcome the best!
Award Winning Founder of ADHD Business Lab | Podcast Host | Keynote Speaker | Entrepreneur.com
2 年What a great conversation! I just realised, in my calls I ask what other options someone has considered, what they've tried already etc. but I've never asked directly if they've had any other quotes from someone who does what I do... food for thought.
Business Coach ?? Podcast Guest ?? Keynote Speaker ?? Bestselling Author of Online Business Startup and Take Your Shot - Ask me for a free copy of Take Your Shot. Group and 1-2-1 Coaching. Breakthrough Sessions
2 年If you want to know more about how to articulate the value or your products/services you can always request a copy of my bestselling book, Take Your Shot here: https://fearless.biz/tys P.S. I’ll even sign it for you too ????
Strategic growth partner to seriously ambitious businesses who want to scale both safely and profitably.
2 年Very well said Robin Waite. Service providers who can truly back up their fees with proven results should always feel confident in the pricing structure as long as it’s commensurate with the rewards you can help the client obtain. Once you articulate you VALUE proposition correctly you will see leads coming your way who respect your value and who give less credence to seeking the lowest fee. Thanks for sharing
Bowen Technique Practitioner; Conversational English Coach; Consultant
2 年I love this! What a great article:)