Know Your Worth
Have you ever been afraid to present the price of a project because you think it’s too high? Lowered the price before you ever presented it? Removed some contingency monies, reduced or removed supervision costs, or not marked up all of the line items in your estimate? That’s this weeks topic – Valuing Yourself.
I think at some point in your career you’ve charged less than you should have. I know I have. I’ve been guilty of all of the above, except for not marking up every line item. Let’s take a look at why we do this.
At the end of every estimate, we do what we call “massage the estimate”. This is where we whittle down the estimate to a number that we think the client will accept, and one where we can still make an acceptable profit. Most of the time this worked very well. We hit our estimates consistently within plus or minus 5%, mostly on the plus side. Refining the quote also makes us confident that we cannot charge any less than this.
Too many remodelers are not charging what they are worth, especially these days when the economy is still on the rebound, and consumers have changed their mindsets and buying habits considerably.
There are two ingredients that are essential to selling at a higher price – perceived value and your own self worth.
Perceived value is what you build for your prospective client as you explain the benefits and features of their proposed project. It is up to you to channel this perception. They want the project. They’ve dreamed about it for a long time. Now it’s up to you to show them how valuable the project is. You have to put the finishing touches on the masterpiece that they’ve drafted. This is salesmanship. If you are good at your job, then building this perceived value may come naturally. Show your excitement and enthusiasm for the project, as if it were your own. The passion you show will carry over to them, and they in turn will be receptive to your “finishing touches”.
Self worth, or self esteem, is a huge subject in itself. We all struggle with it. Even those who are wildly famous, or insanely rich, still struggle with their self worth. It is an ongoing battle, but fortunately it is a battle you can consistently win by applying certain techniques.
René Descartes, mathematician and philosopher, in a letter he wrote at the end of his life penned, “My life has been full of misfortunes, many of which never occurred”. That’s a short quote with large implications. You make up the chances of you getting a job at your price. You carry on this imaginary sales pitch where you are rejected. You make the choice to be nervous and doubtful when you present the number. Those are your choices. The outcomes are imaginary. Most of them will never occur. Yet you hold the belief that they will. A dark room can be a pretty scary place until you turn the light on. And then you see that there was nothing to fear in the first place. It was all in your mind. Flip the switch.
Take your nervous energy and re-channel it into positive energy. Rehearse the scene where they gladly accept your proposal. Talk to yourself in the mirror. Say with utter confidence, “Yes, and the price is $45,000.” Over and over again. Smile. Relax. Most of all be confident in your numbers, and the solid value they represent. The reason I could sell at higher margins than others, was I had absolute confidence in the cost of the job. I knew we could not deliver what they expected at a lower price. And I conveyed in to them quite literally. Make it clear to your prospective clients that you have done your homework, you know what they expect, and you can deliver it at this price.
Another technique is to think about how good it feels to win. Think back on an event where you won, or succeeded. How did it feel? Relive that sensation. That’s how good it will feel to go home with a signed contract.
Those are some basic tips that I hope will help you sell your products. Be truly confident in yourself. Remove any self doubt. If you have any self doubt, no matter how well you try to hide it, your prospective client will see it. Don’t go too far in the other direction either. Cockiness is not confidence. Confidence is genuine and sincere. When you bond with your prospective client and show them that you are working in their best interest, you’ll get the sale. Think back to Descartes’ quote – most bad situations are only imaginary. Take control and think about sales that close, not sales that are rejected.
Have fun selling this week. I’ll see you next week with another great Weekly Wrap-Up.
Wishing you the best of fortune, Randall
Randall S Soules
Remodeling coach, adviser, and educator
My one-on-one coaching will take your remodeling business to new heights!