How Do Contractors Stop Discounting Their Prices Just to Keep Their Schedule Full?

Question

Sales and Production are always conflicting at some point. Yet, one very common issue for business owners is to struggle to raise their own prices, however, I think consistency is one of the bigger problems I have.&nbsp;Production-First business owner here (shocker) and I am inconsistent with holding to my pricing. Too often I give discounts and/or walk my numbers down to be more competitive or to make sure my schedule is full instead of towing closer to that line and holding my numbers longer. I believe in our value but perhaps I still act like a start up who is afraid to fail instead of standing on what I have already built?&nbsp;Is there anyone else here that overcame this and how? This week, I changed my own pay structure to be held more to Sales margin on jobs so I stop thinning it out.
Should I just hire someone great at sales and get out of the way or force myself to get better at sales and then pass it off?&nbsp;

fthfulelectric · Answer

I follow Jeff of the 360 electrician, and he pumps out a ton of quality videos with practical advice. Check this store out that he told.

https://youtu.be/9NYw9e1Grjs?si=R6dEnIc_li2CsPsd

I'm sure you have a lot on your plate, and I would suggest if you can hire a solid person that knows the trade that is the route to go. Hiring that solid sales person is going to allow you to pour more of yourself in other buckets of your business to strengthen them.

sunsetgates · Answer

I just purchased a company and when I took over, the prices were too low. The previous owner gave a lot of discounts to win deals. So I raised prices. When you raise prices, you can still offer a discount and protect your margin. Pick your margin floor and raise prices so you can discount it down to that margin floor. My guys are super confident in our quality and they stick to our prices. We usually only discount if they are a previous customer or buying multiple products from us. Our volume is down slightly YoY but margins are better. Raise those prices and be confident in your quality and brand. Depending on the demographics you serve, higher prices sound like higher quality. We win in more affluent areas by actually raising prices a little more. At the end of the day it's all about psychology-people want quality and they want a deal. Protect your margins at all cost so you can feed your family and grow the business. My 2 cents.&nbsp;

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How Do Contractors Stop Discounting Their Prices Just to Keep Their Schedule Full?

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