Is anyone else in a trade having a bad time.
Discussion
I do mainly drveways and patios, last year things took off, i was getting a fair amount of work and i thought that finally i had begun to 'make it'
This year understandably things are worse, quite a bit worse actually. If i quote 15 jobs im too dear almost everytime and if i do win one thy screw me to the ground. Its all price price price now, no concern it seems for quality of my work which is what in the past kept me busy.
They dont even quote like for like, they think they do but when you mention things it becomes clear they are not.
Many tradesmen round here it seems are pricing very low (below prices 10 years ago!!!!! ) and then either cuitting every corner there is to cut or banging on hidden extras. I cant go down that route, unfortunately im too honest for that.
It feels now that this will never improve and the once decent trade i was in is up s
t street.
I knew it would get bad but not like this, the phone rings loads, i do a lot of quotes which all cost me money only to find im dearer by peanuts, i have severly cut my rates, to the extent that i,m working for what i was when working for other people years ago but with the running costs of a small business.
Any lower then it would be silly to do the job as if anything goes wrong (which it usually does for example damage to clay pipes or needing a little more aggregate or taking a day longer than expected) i could possibly end up paying for their job to an extent.
So who else in a trade feels like giving up? It cant just be pavers who are being beaten by the price stick.
This year understandably things are worse, quite a bit worse actually. If i quote 15 jobs im too dear almost everytime and if i do win one thy screw me to the ground. Its all price price price now, no concern it seems for quality of my work which is what in the past kept me busy.
They dont even quote like for like, they think they do but when you mention things it becomes clear they are not.
Many tradesmen round here it seems are pricing very low (below prices 10 years ago!!!!! ) and then either cuitting every corner there is to cut or banging on hidden extras. I cant go down that route, unfortunately im too honest for that.
It feels now that this will never improve and the once decent trade i was in is up s
t street.I knew it would get bad but not like this, the phone rings loads, i do a lot of quotes which all cost me money only to find im dearer by peanuts, i have severly cut my rates, to the extent that i,m working for what i was when working for other people years ago but with the running costs of a small business.
Any lower then it would be silly to do the job as if anything goes wrong (which it usually does for example damage to clay pipes or needing a little more aggregate or taking a day longer than expected) i could possibly end up paying for their job to an extent.
So who else in a trade feels like giving up? It cant just be pavers who are being beaten by the price stick.
Looking at the positives, you are getting enquiries and you are doing a job that needs to be done properly.
I'm seems to me that you need to look at every way possible to convey to your potential customers that you are doing a good job for the right money. This is where the salesmanship is required, this could be backed up with photos of how you do the groundwork and pictures of sunken driveways showing what happens when corners are cut.
People will always pay for perceived quality but you need to create that perception for them, otherwise they are buying on price alone.
I'm seems to me that you need to look at every way possible to convey to your potential customers that you are doing a good job for the right money. This is where the salesmanship is required, this could be backed up with photos of how you do the groundwork and pictures of sunken driveways showing what happens when corners are cut.
People will always pay for perceived quality but you need to create that perception for them, otherwise they are buying on price alone.
The way around this is to not enter a price war.
Either position yourself in the market where price is not the first factor, or look to radically change the market.
Maybe at the moment 80% of clients are only concerned about price and 100% of businesses are chasing them.
However, you might be able to be the business that doesn't bang on about price, you look at what the other 20% of the market want. You keep your margins, you need to do less jobs, and still get a client base.
Either position yourself in the market where price is not the first factor, or look to radically change the market.
Maybe at the moment 80% of clients are only concerned about price and 100% of businesses are chasing them.
However, you might be able to be the business that doesn't bang on about price, you look at what the other 20% of the market want. You keep your margins, you need to do less jobs, and still get a client base.
When you do quotes, do you offer the chance for prospective clients to go and look at your previous work?
When I had a bit of block paving done, the guy that got the job wasnt the cheapest but he did take time to introduce me to previous clients so that I could speak to them about the quality of the job and reliability.....
Could you tie up with another business that does , for instance, conservatories....
I would agree with a portfolio of previous work and any testamonials......
Do you offer a referal bonus for previous clients...Maybe some M&S vouchers if they refer a friend and they book a job with you....
Sorry if this is teaching you to suck eggs but word of mouth to me is better than price. I have been stung before by going for the lowest option only to have the job stretch out longer than promised and have issues after completion..
Good luck and hope you succeed...
When I had a bit of block paving done, the guy that got the job wasnt the cheapest but he did take time to introduce me to previous clients so that I could speak to them about the quality of the job and reliability.....
Could you tie up with another business that does , for instance, conservatories....
I would agree with a portfolio of previous work and any testamonials......
Do you offer a referal bonus for previous clients...Maybe some M&S vouchers if they refer a friend and they book a job with you....
Sorry if this is teaching you to suck eggs but word of mouth to me is better than price. I have been stung before by going for the lowest option only to have the job stretch out longer than promised and have issues after completion..
Good luck and hope you succeed...
I do think that, whilst price is a huge/main factor, if you are missing out by peanuts then try different incentives.
One company I spoke to about doing something very similar to what you do "proactively" offered a 30%/3 month deferal of payment until you're happy with the job. I'm not sure if that's come across right but basically, the customer can hold back 30% of the price for 3 months to make sure they're totally happy with the job.
Now, I know this is nothing new in concept, but the workman actively offering it, rather than me/the customer requesting it added a great deal the decision whether to use them. Unfortunately, the job came in far more expensive (from all quotes) than I expected so I've had to stall it - but the chap mentioned above, would have won the work based on this perceived confidence in his own work. He wasn't the cheapest, however.
One company I spoke to about doing something very similar to what you do "proactively" offered a 30%/3 month deferal of payment until you're happy with the job. I'm not sure if that's come across right but basically, the customer can hold back 30% of the price for 3 months to make sure they're totally happy with the job.
Now, I know this is nothing new in concept, but the workman actively offering it, rather than me/the customer requesting it added a great deal the decision whether to use them. Unfortunately, the job came in far more expensive (from all quotes) than I expected so I've had to stall it - but the chap mentioned above, would have won the work based on this perceived confidence in his own work. He wasn't the cheapest, however.
I recall some interviews I did in the moptor retail sector and one guy said that if you sell on price the cutsomer will walk uop the raod for the price of a set of mud flaps. If you sell the service, the price becomes another, less important factor.
I think peace of mind is worth 20% more.
I think peace of mind is worth 20% more.
Brown and Boris said:
I recall some interviews I did in the moptor retail sector and one guy said that if you sell on price the cutsomer will walk uop the raod for the price of a set of mud flaps. If you sell the service, the price becomes another, less important factor.
I think peace of mind is worth 20% more.
Then the question becomes, how do you demonstrate your ability to give that peace of mind when your quote looks like any other quote, and every other supplier just as easily uses the same assurances as they write the quote out?I think peace of mind is worth 20% more.
What image do you portray when you go round? If you turn up in some sort of corporate garb (polo shirts or the like) and make your quotes professional looking then it will inspire more confidence than someone who turns up looking messy and scribbles down the quote on a scrap of paper (or worse still doesn't write it down). Again, apologies if I'm teaching you to suck eggs, but I've been amazed at the way some people approach quotations in the current climate, and I for one don't mind paying that bit extra for a professional approach because it inspires confidence that the work will be done properly and with care.
Plotloss said:
JustinP1 said:
Either position yourself in the market where price is not the first factor
Where are they?Practically everyone, if not everyone has price as one of their very highest priorities at the moment.
I am guessing that not *all* people aren't cutting back and asking you to fit Jamo speakers all around just because of the big recession?
At times like this it is probably more effective to go against the grain of cutting price rather than with it. Driveways and AV installs are both discretionary purchases, if price was really the only factor then people wouldn't get them done at all.
I think the key is to find what people really *value* rather than be another one of 5 companies working for minimum wage just to get a job.
Do you have a portfolio of any kind?
Do you have a list of letters of recommendation? If not, it may be an idea to get some and then take copies of those letters around (which will no doubt say things as above, not the cheapest but by far the best workman etc) when you look to quote.
I would also be upfront (which I assume you are) and say that you are unlikely to be the cheapest BUT you will do the best job. Then as a confirmation of that perhaps as above say in fact I am sure you'll like it that you don't pay me the last 20% for 28 days. (A quick contract can sort that out)....
Anyone who says don't bother paying me the rest until you've had it a while and you really like it (i.e. there are no snags which come to light a week later and you'll not see me for dust) and there are no errors then you pay me. AND of course you can tell them that if there are any snags which they haven't noticed then you WILL be back to fix them to get the rest of your fee.....
I disagree with a nice works van and nice t-shirts and Polo shirts etc. all with the company logo, but that's just me - I think, well, they must have paid for those somehow..... Having seen a builder turn up for a quote in an SL55 AMG I kinda figured he MAY just charge too much - and he was 3 times the price of the next quote.....
Do you have a list of letters of recommendation? If not, it may be an idea to get some and then take copies of those letters around (which will no doubt say things as above, not the cheapest but by far the best workman etc) when you look to quote.
I would also be upfront (which I assume you are) and say that you are unlikely to be the cheapest BUT you will do the best job. Then as a confirmation of that perhaps as above say in fact I am sure you'll like it that you don't pay me the last 20% for 28 days. (A quick contract can sort that out)....
Anyone who says don't bother paying me the rest until you've had it a while and you really like it (i.e. there are no snags which come to light a week later and you'll not see me for dust) and there are no errors then you pay me. AND of course you can tell them that if there are any snags which they haven't noticed then you WILL be back to fix them to get the rest of your fee.....
I disagree with a nice works van and nice t-shirts and Polo shirts etc. all with the company logo, but that's just me - I think, well, they must have paid for those somehow..... Having seen a builder turn up for a quote in an SL55 AMG I kinda figured he MAY just charge too much - and he was 3 times the price of the next quote.....
Jasandjules said:
I disagree with a nice works van and nice t-shirts and Polo shirts etc. all with the company logo, but that's just me - I think, well, they must have paid for those somehow..... Having seen a builder turn up for a quote in an SL55 AMG I kinda figured he MAY just charge too much - and he was 3 times the price of the next quote.....
Van yes, AMG no. They are a cost to the business (and therefore the customer), but they do show that the owner is investing in the business. It also tends to show that they are serious about their reputation. It's a cost I don't mind incurring for the knowledge that they're unlikely to disappear as soon as there are problems.That said, the guy that did my garden for me turned up looking a mess in an unmarked hilux. Got the work because he correctly identified that my MGB was a '73 US import. Takes all sorts I guess.
therealpigdog said:
Van yes, AMG no. They are a cost to the business (and therefore the customer), but they do show that the owner is investing in the business..
Sorry yes I was rather poor with my clarification there, what I meant was a brand spanking new fully liveried and in perfect condition van. Only because I expect a builder/plumber to have a van a couple of years old (I know, it is my own brain fault rather than any actual real world logic) rather than a van worth more than my car, and a van which has clearly been used and abused.Jasandjules said:
therealpigdog said:
Van yes, AMG no. They are a cost to the business (and therefore the customer), but they do show that the owner is investing in the business..
Sorry yes I was rather poor with my clarification there, what I meant was a brand spanking new fully liveried and in perfect condition van. Only because I expect a builder/plumber to have a van a couple of years old (I know, it is my own brain fault rather than any actual real world logic) rather than a van worth more than my car, and a van which has clearly been used and abused.Tyre Smoke said:
Jasandjules said:
therealpigdog said:
Van yes, AMG no. They are a cost to the business (and therefore the customer), but they do show that the owner is investing in the business..
Sorry yes I was rather poor with my clarification there, what I meant was a brand spanking new fully liveried and in perfect condition van. Only because I expect a builder/plumber to have a van a couple of years old (I know, it is my own brain fault rather than any actual real world logic) rather than a van worth more than my car, and a van which has clearly been used and abused.
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