A Success Killer: Slashing Prices
One of the major roadblocks that keep most owners from reaching the success they desire is getting caught up in the everyday things, putting out fires or dealing with incompetent or poorly trained employees. These issues distract owners and keep them from doing what they need to be doing, which is making profits. To grow our businesses into highly profitable, money making machines.

Without a doubt, the number one reason why so many companies in this industry struggle to make decent profits is because their pricing is too low. There are plenty of repair shops but there are very few service and repair shops. This brings up the number one crippler in this industry, which is Price Slashing. It’s damaging for two reasons; 1) companies are running themselves into the ground by not being profitable and 2) they’re mucking every thing up because by letting the public know if they haggle over prices, they’ll get their way. You can’t go into Sears and say I don’t want to pay ninety nine dollars for that wrench set, why don’t you give it to me for fifty? And, if we went into Ruth’s Chris and told them we’ll pay forty for an eighty-dollar steak, they’d escort us right out of the building. Nobody does this and neither should contractors.

The reason why so many contractors are slashing prices is because they don’t know how to sell. They cut prices for the easy sale and then later pay the consequences. Why charge seventy-five or a hundred and fifty dollars an hour when others are charging four to five hundred? But here’s the rub, you can only charge higher prices when value exceeds price. The real question is what kind of service experience are your customers receiving?