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My dad is expensive. As a 60-plus-year professional industrial and commercial contractor, he tends to charge more for his services than his competition. How has he stayed in business all these years if clients can easily choose a lower priced company for the same job? By offering the client more than what they contracted for.
My dad has always believed in superior workmanship, even if it means ripping out a poor job and doing it again, at his own cost. The same can be said of many HVAC subcontractors who work for my dad. It's not unusual for him to choose a company that's more expensive than the competition since he knows he can rely on superior workmanship and service. And that means doing it right the first time, from installation to balancing.
According to a recent article by HVACRBusiness.com, my dad's philosophy is not as illogical as some might think. "To get paid more, you must offer more. Most companies want to sell quality over price . . . When preparing a proposal, estimate or bid, most companies never consider including more than the minimum required . . . They've got to be low bidder to get the work."
But statistics show that up to 25% of commercial building clients would be willing to pay more not only for superior HVAC workmanship, but also for excellent follow-up service. Companies that can consistently demand a higher price must constantly prove themselves an "expert" at their game, while the lower-priced contractor is often perceived in the market as a "generalist."
As a commercial contractor, do you see yourself switching to a business model based on higher prices in exchange for better workmanship?
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Re: Make More Money Than Your Competitors
