The Misconception of Pricing for New Contractors: What’s Your Worth?
Updated: Sep 16, 2023
Starting out as a painting contractor is no easy feat. With the myriad of decisions to make, one of the most frequently asked questions from newbies is whether to offer services at a reduced price. Today, I’m here to dissect that question, shed light on common contractor beliefs, and guide you on how to price your services in a way that truly reflects your value.
The Dilemma of Pricing
One question consistently echoes in our office: "As a newbie, should I undercut my prices to attract more clients or should I charge as if I've been in the game for decades?" It's an age-old debate. But before we delve deep, let’s clear up a few myths.
New Contractor Beliefs: The Misconceptions
It's natural for those new to the contracting world to believe they need to prove themselves. The initial stages of any business involve establishing credibility, trust, and a customer base. It’s like being an underdog on a vast playing field. This feeling, though unsettling, can be a driving force. But does that mean you undervalue your services? Absolutely not!
The Problem with Lower Prices
1. Setting a Precedent: Charging less now means your early customers will always expect those rates. When you later realize that you’ve been undercharging and try to adjust, these clients may resist. Worse still, they may refer you to others seeking cheap services. Essentially, you become "that cheap contractor", even if the quality of your work is top-notch.
2. Devaluing Your Own Worth: Consistently charging less than what you're worth becomes a dangerous habit. It affects your confidence and diminishes the respect for your trade. We're on a mission to restore respect and dignity to the trades. By undervaluing your services, you inadvertently undermine that mission.
Being New is Not a Disadvantage
Think about it: being the fresh face in the industry can be an advantage. Established businesses often get complacent, losing their initial drive and enthusiasm. Their customer experience might decline over time, leaving a gap that you, the hungry newbie, can fill.
You might be new, but that doesn't mean you should compromise on your pricing. Instead, focus on delivering an unparalleled customer experience. Show clients that despite being new, you provide services worth every penny.
You Deserve Fair Compensation
Whether you’re a veteran or a newcomer, your services have value. Your family deserves a good life. You deserve weekends off, time with loved ones, and the ability to pursue hobbies. By charging what you're worth, you ensure a balanced life while delivering your best to clients.
Understanding your worth doesn’t mean you can’t prove yourself. Delivering top-quality results while charging appropriately will cement your reputation in the industry.
Conclusion: Finding Your Worth
It's essential to start on the right foot. Take a moment to assess what you bring to the table. Understand your costs, evaluate your skills, and determine the value you provide to clients. It’s not just about numbers; it’s about respect, dignity, and knowing your worth.
If you're unsure how to price your services, we have resources available to help you navigate this tricky terrain. Remember, it's not just about making money; it's about making a statement.
And as always, never stop learning and growing. You’ve got this. Remember, when one contractor rises, we all rise. Let's elevate the industry together.