Firstly I recently had a few interesting conversations with clients both coaching and other areas about value. The first point that I want everyone to internalize is that price is only a concern in the absence of VALUE.
Now customers may not fully understand the components that go into any given job, this is very accurately portrayed in the trades professions when some customers feel they could do the job themselves for much less….but can they? My fellow real estate investors are thinking right now that they have seen the horrific results of some real winning DIY renovation jobs.
This story has been around social for a while so I thought it really illustrates this point in business, and serves as a great reminder to respect your value in business and ensure that you convey that value well to your prospects and you will increase your sales, plus convert more A+ customers.
A customer asked me how much it cost to do this job….
I answered him: $ 1500
He said: So expensive for this job?
I asked: How much do you think it would cost you?
He answers me: $ 800 maximum… That’s a pretty simple job right? !”
– For $ 800 I invite you to do it yourself.
– But…. I don’t know how to.
– For $800 I’ll teach you how to. So besides saving you $700, you’ll get the knowledge for the next time you want
– It seemed right to him and he agreed.
– But to get started: you need tools: A welder, grinder, chop saw, drill press, welding hood, gloves etc…
– But I don’t have all these equipment and I can’t buy all of these for one job.
– Well then for another $300 more I’ll rent my stuff to you so you can do it.
– Okay, he says.
– Okay! Tuesday I’m waiting for you to start doing this work
– But I can’t on Tuesday I only have time today.
– I’m sorry, but I’m only available Tuesday to teach you and lend you my stuff. Other days are busy with other customers.
– Okay! That means I’m going to have to sacrifice my Tuesday, give up my tasks.
– I forgot. To do your job yourself, you also have to pay for the nonproductive factors.
– That is? What is this?”
– Bureaucratic, tax, vat, security, insurance, fuel etc.
– Oh no!… But to accomplish these tasks, I’m going to spend more money and waste a lot of time!
– Do you have them? You can do it to me before?”
– I’ll make you all the material you need. Truck loading is done Monday evening or Tuesday morning you’ll have to come by 6 loading the truck. Don’t forget to be on time to avoid traffic jams and be on time
– At 6??? Nope! Too early for me! I used to getting up later.
– You know, I’ve been thinking. Y ‘ all better get the job done. I’d rather pay you the $1500. If I had to, it wouldn’t be perfect and it would cost me a lot more.
When you pay for a job, especially handcrafted, you pay not only for the material used, but also:
– Time to go
– Safety and security
– Payment of tax obligations
No one can denigrate other people’s work by judging prices. My prices to do this would be much higher than it says here for that job but its the point not the amount.
Only by knowing all the elements necessary for the production of a certain work can you estimate the actual cost.
When you hire a coach (which gets paid for their experience) you get focused attention, custom guidance, access to their networks, experience and a third party unbiased perspective so that you can get the feedback you need to get results in a fraction of the time.
What about mentoring? Mentoring is fantastic and I have had many over the years which have helped a lot, but the coaches I have invested in (they are an investment not a cost) have drastically moved the needle for my business. Mentors will be there to help but they have their own businesses to run as well so they can’t always be there when that critical deal hits your desk and you need fast targeted advice.
If you have every considered building a real estate BUSINESS, which is different that flipping a house per year as a side hustle contact us today for a discovery call to explore some options.
PS: We help those who want to build that side hustle as well, there are options for that!
To you success,
-Respect The Hustle