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What went right?

Josh is a good plumber with a great team. So, although he didn’t get the job, he also knew that, at two-thirds of the original price, it wasn’t worth having. Josh knows his numbers and has a good reputation. So, he:

1. Priced the job for profit (not based on gut feel or guesswork) and knew it wasn’t too high or too low

2. Knew his margins and at exactly what point the job wasn’t worth doing

3. Didn’t panic and slash his price

4. Has high standards and wasn’t going to take shortcuts

5. Knows he delivers top outcomes for his clients and deserves a fair reward.

Client’s viewpoint

Business Coach Daniel Fitzpatrick from Next Level Tradie shows how to compete without being the lowest price.

AUTHOR: DANIEL FITZPATRICK, NEXT LEVEL TRADIE

Lost out to a cowboy again!

Local plumber Josh is fuming. He’s just learned he’s missed out on the King Street bathroom reno—he really wanted that one. The local cowboy has undercut him again! By nearly a third this time. But there’s no way he could have made any money at a rate that low. It would have only covered the materials and labour.

He’d had an inkling when scoping the job that Mike (the client) might be shopping around. The job looked relatively straightforward but, from experience, Josh knew there were likely to be surprises with an older house like this.

Josh didn’t have time to explain this to the client that day; he needed to be at the next appointment. “Mike, don’t worry about the details, mate. I’ll put it all in the quote and email it to you when I’ve got time.”

That job he thought was in the bag is gone

So, what went wrong?

When Josh first scoped Mike’s job, there were opportunities he missed that would have put him in a better position against the lower price:

1. Asking the right questions to see if the job would be a good fit (so he didn’t waste time quoting a job he couldn’t make money off or was never going to get).

2. Checking if Mike was the decision maker or if others were involved, like his wife.

3. Taking time to listen to what aspects of the job were most important to Mike (eg, timeframe, quality of work, dealing with the unexpected, staying on budget).

4. Making sure Mike understood what was involved in doing the job right.

5. Identifying Mike’s budget.

6. Making a detailed estimate/quote and making sure Mike understood each part (and knew what he was getting from a quality plumber). So, if Mike compared quotes, the difference would be obvious.

7. No follow-up to show he was serious about wanting the job and to address any concerns.

It’s human nature to like a bargain. Clients will always be tempted to go for the cheapest option if they don’t understand the reasons not to.

Here’s the thing, though. Most clients you quote don’t know the details like you do. Unless you show them.

A certain low percentage of all buyers will always decide purely on price. Let’s recognise those jobs are often the ones no one makes any money off. Weed these ones out early. You want to attract the much larger majority who appreciate good workmanship and want something that lasts. Who want peace of mind the work is done right and there won’t be any nasty surprises.

To give prospective clients the reassurance they need when quoting, use these:

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