There are many pricing myths in the construction industry, and falling victim to them can have serious consequences. Today, Tom debunks some common myths that often misguide contractors in their pricing strategies and advises you to rethink yours and make more informed decisions to ensure the success of your business.
Episode Highlights:
[00:00] - Common pricing myths that affect contractors
[00:36] - Myth #1: Estimating is an exact science
[02:07] - Estimating is part art and part science
[02:54] - Myth #2: Clients will pay a premium for your reputation
[03:28] - Clients pay for the value they believe they will get
[05:25] - Myth #3: Low-balling guarantees contracts
[06:27] - Tom’s experience of discounting bids in 2007
[09:01] - Myth #4: You need to pay attention to the going rate
[13:06] - Myth #5: Estimates are non-negotiable once given
[15:35] - Wrap-up
Resources:
💰 You didn’t become a contractor to struggle financially. Download our worksheet and start calculating a 50% gross profit on every job. It’s time to get your shit together! https://thecontractorfight.com/50/
💸 Grab your copy of our FREE Contractors Guide to Spotting Cheap Prospects here: https://thecontractorfight.com/cheap
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