As bookkeepers we always want our clients to learn how to stop getting paid less than they should do.
We have quite a few clients who work outdoors as landscapers and contractors. They are people who are good with their hands, operate machines, people who don’t want to sit at a desk. A common complaint they have is customers who do not value their skills highly enough.
We can talk these issues through with clients to look at how they improve their profile and start to come across as experts in their field rather than unskilled workers. Customers need to see and understand the value of the work they are asking for. These changes can start from the marketing you are putting out into the world – is your profile letting you down? Is your message professional enough to give the impression that your sevices are valuable?
If you are professional, stick with the health and safety rules, have your own insurance and need to pay the guys who are doing the job with you, it is only fair that you are paid the right amount for the work. When householders are asking for a quote they often forget that you have costs to cover, whether you are a one man band or a team there will be always be costs that you need to factor in.
If you set your prices more than a couple of years ago they are bound to be lower than they should be, as the cost of living and national minimum wage have increased so much. It is important not to rely on out of date pricing models.
It may be possible to offer a package or bundle so that the customer pays a little more than they expected but they walk away feeling positive about the extras you have thrown in or the after sales care they will receive.
Sometimes it can be about turning work away when customers have unrealistic expectations about price. As business owners we are not good at turning work down, but if you take on a job for too little money and get a reputation for being cheap rather than for being good – that work will end up costing you money in the long run.
It can be helpful to have a clear idea of how much your competitors are charging, so that you know whether your prices are comparable. Talk to other local businesses and if a customer gives you feedback about being expensive, ask them to explain how they would like the price to change. Is it that they want a lower price but they are also expecting a smaller amount of work than you had in mind when you quoted them? Or are they going with a company who is unlikely to give them the standard that they really want – these businesses let themselves down eventually by pricing too low and upsetting their customers with poor work.
There are little tips you can follow when presenting your business which add up to a better overall picture. Consider what you and your team are wearing when you turn up on site. When was the last time the truck was washed and has it been sign written? Have you got a bookkeeper making sure your invoices are sent out with the all the right information on them? On their own these seem like small details but they help the customers to build an overall impression of your business.
Small differences can make a big impact so talking through the changes that can make is a good way to start. We want our clients to get paid for their services as they are passionate about their business and we are all in this to earn a living.
