24/01/2021
A CONVERSATION ABOUT PERCEIVED VALUE:
A customer asked a contractor how much it would cost to do this project.
The contractor gave him a proposal: $4500
The customer responded: Thatโs 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 responded: 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! Letโs 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. Thatโs fair.
The contractor responded: Great! We will start the project on Monday.
The customer answered: I work Monday through Friday. Iโm 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 Iโm going to have to sacrifice my pay for 3 days or use my vacation time!
The contractor responded: Thatโs 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. Thatโs all in addition to the actual project itself. And speaking of materials, thatโs 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 doesnโt usually start until 8am!
The contractor responded: Well then youโre in luck! My plan is to start on the deck build 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, Iโm realizing that a lot more goes in to a job than what a customer sees in the finished project. Your proposal 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 itโs a physical project or digital project) you pay not only for the material and the work to be completed. You also pay for:
โ๏ธ Knowledge
โ๏ธ Experience
โ๏ธ Custom Skills
โ๏ธ Tools
โ๏ธ Time to plan
โ๏ธ Time to prepare
โ๏ธ Professionalism
โ๏ธ Work Ethic
โ๏ธ Excellence
โ๏ธ Discipline
โ๏ธ Commitment
โ๏ธ Integrity
โ๏ธ Taxes
โ๏ธ Licenses
โ๏ธ Sacrifices
โ๏ธ Liabilities
โ๏ธ Insurance
If you request a proposal for custom work to be done, please donโt disrespect a service provider by trying to get them to lower their prices.
If their proposal exceeds your budget, thereโs nothing wrong with getting other proposals.
Just remember.. you get what you pay for.
๐๐ผ SERVICE PROVIDERS: Know your worth and be confident in it.
๐๐ผ 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 Tradesmen.
