bradleyelectric
Senior Member
- Location
- forest hill, md
I read some of these posts and shake my head. Maybe I just have heard too many times that added value is worth more. Add value or at least perceived value. Isn't perception a lot of what something actually is? If we perceive it a certain way it is. A designer can say this is the electrician you need and to the customer you are the electrician they need. It has to be so.
The designer knows what she is talking about and that is what they said. They are the expert and that is why they were hired. I get a call. Margie said I need you. Margie is right, you need me. Margie did the hard part. She built value into her business by being the expert.
Part of the value in her business is knowing who the customer needs to call. Someone that is easy to work with, shows up when they say they will, does a professional installation at a reasonable cost (enough to actually make a profit, and feel they are making enough to be able to add value into there job instead of feeling like they don't have the time to be there because they have other jobs to get to, so they do things in a manner other than what they feel may be best), can be contacted when needed, and handles themselves in a professional manner.
All we have to do is fulfill our responsibility of adding value in our business. 10% of a well sold job is not a lot of money. There are guys running around selling 200A heavy ups for $800. I'm selling them for $2300. That's almost 400%.
A garage is selling car fixes for the same as the dealer. The dealer has added value. There is a good chance that someone is selling the same fix out of there 2 car garage next to their house for 25% of what the car dealership is and most people don't know it and there is sure to be guys that run the full gambit between the 2.
Car Dealerships are typically the most expensive place to get a car fixed. There are some dealerships that will try to make people that don't know think if they don't get there oil changed there than their warranty is voided. They don't say that outright, they just let them know that they do oil changes at the required intervals that keeps there warranty in place and they keep all the records of them being done so there will not be a problem it they ever suffer catastrophic engine failure during the 10 year 100K mile warranty did you know it costs close to $6500. to put an engine in this car? Do you want me to go ahead and get the first appointment set up for you while your here? I can take you back to the service department and introduce you to Mike our service manager. He can take good care of you.
The salesman added value to his service department by letting you know they keep records of required work and introduced the customer to the service writer creating a relationship and awareness.
There is added value in being able to get a production facility back in operation in 5 days compared to 5 weeks. There is added value in being able to keep an electrical system organized, labeled and in good working order as opposed to walking into a commercial facility and finding a breaker somewhere and adding an unrelated piece of equipment to it. Of course it is cheaper initially to put a piece of equipment on an existing breaker and get out of there in 4 hours. What if there are long term goals of added production or an office renovation in the area of the needed circuit?
Possibly now is the time to add the new service or sub panel. You just added value by knowing the background and direction of your customer. He already has a piece of the future in place, or has at least been made aware of direction that needs to be taken and knows you are the expert. Things were done in such a way that Ernie the warehouse guy can find what he needs without having to spend a lot of time and energy trying to figure out or remember where he has to look for that breaker. Added value. Worth more money. If all I've got is the cheapest price than 10% may be an awful lot of money. If I've got added value, 10% is not so much. I've got Margie. She's got added value. She has positioned herself as the expert. She's also got 10% coming to her. It's business.
These are the 2 main posts that inspired this long rambling rant. Funny neither is from a contractor or business owner, but desire to express their ideas about business matters. I?d think the customer would go with whomever built the best perceived value into there price especially if the prices were similar. Being recommended by a professional that is already involved in the project would certainly build a lot more value than the fact things were broken down a little more in someone else?s bid, but if there is a defined scope in your bid who cares if the price is itemized? If you show the value in the job you do than that is what the customer will say about you. If they want the cheapest person available you don?t want them as a customer anyway. You want someone that will pay for a profitable job. I have no idea what that last part of that last post is supposed to mean. I think it means he figures Marc has no exit strategy due to the fact he is adding value to his service and making his business more profitable. Not sure. I can certainly see the value in Marc operation. It shows in his posts. It will be showing again soon when the next person needs information as to how to use a piece of equipment.
The designer knows what she is talking about and that is what they said. They are the expert and that is why they were hired. I get a call. Margie said I need you. Margie is right, you need me. Margie did the hard part. She built value into her business by being the expert.
Part of the value in her business is knowing who the customer needs to call. Someone that is easy to work with, shows up when they say they will, does a professional installation at a reasonable cost (enough to actually make a profit, and feel they are making enough to be able to add value into there job instead of feeling like they don't have the time to be there because they have other jobs to get to, so they do things in a manner other than what they feel may be best), can be contacted when needed, and handles themselves in a professional manner.
All we have to do is fulfill our responsibility of adding value in our business. 10% of a well sold job is not a lot of money. There are guys running around selling 200A heavy ups for $800. I'm selling them for $2300. That's almost 400%.
A garage is selling car fixes for the same as the dealer. The dealer has added value. There is a good chance that someone is selling the same fix out of there 2 car garage next to their house for 25% of what the car dealership is and most people don't know it and there is sure to be guys that run the full gambit between the 2.
Car Dealerships are typically the most expensive place to get a car fixed. There are some dealerships that will try to make people that don't know think if they don't get there oil changed there than their warranty is voided. They don't say that outright, they just let them know that they do oil changes at the required intervals that keeps there warranty in place and they keep all the records of them being done so there will not be a problem it they ever suffer catastrophic engine failure during the 10 year 100K mile warranty did you know it costs close to $6500. to put an engine in this car? Do you want me to go ahead and get the first appointment set up for you while your here? I can take you back to the service department and introduce you to Mike our service manager. He can take good care of you.
The salesman added value to his service department by letting you know they keep records of required work and introduced the customer to the service writer creating a relationship and awareness.
There is added value in being able to get a production facility back in operation in 5 days compared to 5 weeks. There is added value in being able to keep an electrical system organized, labeled and in good working order as opposed to walking into a commercial facility and finding a breaker somewhere and adding an unrelated piece of equipment to it. Of course it is cheaper initially to put a piece of equipment on an existing breaker and get out of there in 4 hours. What if there are long term goals of added production or an office renovation in the area of the needed circuit?
Possibly now is the time to add the new service or sub panel. You just added value by knowing the background and direction of your customer. He already has a piece of the future in place, or has at least been made aware of direction that needs to be taken and knows you are the expert. Things were done in such a way that Ernie the warehouse guy can find what he needs without having to spend a lot of time and energy trying to figure out or remember where he has to look for that breaker. Added value. Worth more money. If all I've got is the cheapest price than 10% may be an awful lot of money. If I've got added value, 10% is not so much. I've got Margie. She's got added value. She has positioned herself as the expert. She's also got 10% coming to her. It's business.
weressl said:
cschmid said:
These are the 2 main posts that inspired this long rambling rant. Funny neither is from a contractor or business owner, but desire to express their ideas about business matters. I?d think the customer would go with whomever built the best perceived value into there price especially if the prices were similar. Being recommended by a professional that is already involved in the project would certainly build a lot more value than the fact things were broken down a little more in someone else?s bid, but if there is a defined scope in your bid who cares if the price is itemized? If you show the value in the job you do than that is what the customer will say about you. If they want the cheapest person available you don?t want them as a customer anyway. You want someone that will pay for a profitable job. I have no idea what that last part of that last post is supposed to mean. I think it means he figures Marc has no exit strategy due to the fact he is adding value to his service and making his business more profitable. Not sure. I can certainly see the value in Marc operation. It shows in his posts. It will be showing again soon when the next person needs information as to how to use a piece of equipment.
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