Suppose your customer utters that bane of contractors everywhere: “Your price is too high.” How do you respond? If you are like many contractors, you say something like, “It’s a lot of work.”
“Your price is too high” might seem like a pretty straight forward statement. But what does it really mean? It could mean:
- I have lower prices from other contractors.
- That is more than I want to spend.
- That is what I am supposed to say as a negotiating tactic.
These mean very different things. If we start trying to defend our price without clarifying the customer’s meaning, we could literally talk ourselves out of a job. So, let us consider a different approach.
A professional contractor should expect his price to be higher than most of his “competition.” He shouldn’t hide from that fact, and he certainly shouldn’t be defensive about it. Instead, he should treat it as a source of pride—he has earned it.
Consider the following reply: “I’m not surprised. In fact, I’d be more surprised if I wasn’t the highest price you have received.” Rather than apologize for your price, wear it as a badge of honor.
Defending your price tells the customer that you aren’t confident in what you are charging. And if you aren’t confident, the customer certainly won’t be.
This doesn’t mean that you can charge arbitrarily inflated prices. But if you are offering superior value, you should charge accordingly. If you got it, flaunt it.