Charging A Premium
You're a skilled tradie and you’re proud of the work you do. You know your workmanship is as good – if not better – than others in your field. Somehow, some of your competitors are charging out at a much higher rate than you are… why is it that clients are willing to pay them a premium?
Surprisingly, it’s not about the quality of their work – it’s about perception: your competitors simply have a strong brand and presence in the market.
Think about the local competitor who charges more than you for the same work. Now, look at their brand.
It’s likely that any successful competitor has a brand that is both strong and consistent. It’s clear once you look around that developing a brand and staying consistent with its image gets you paid better and faster.
A solid brand is a foundation of charging a premium price. In fact, just being consistent with your branding increases revenue by an average of 23%
Three ways competitors can charge a premium for the same work, same trade, same local area:
1. They have a consistent visual brand presence
These are the easy signs to spot because you can see them. They might have branded shirts, jackets, hats or hoodies, and their logos on work vehicles. They will have a website, and probably an up-to-date Facebook page with their logo featured on it. These basic visuals are all critical to building a brand.
Strong branding doesn't just stop there though - because a logo and some branded workwear are just visual signs. They aren’t the brand.
2. They showcase their brand value
These are the signs you'll spot by looking a little closer: your competitor will probably have client testimonials on their website and showcase their work across social media channels. This provides people with proof from past clients – someone independent confirming that the price is worth paying.
Remember, branding is about a feeling: when a person enquires, meets or works with you, they need to feel both trust and confidence. Your competitors know this – so they go out of their way to make sure prospective leads know that they can be trusted to do a great job – and communicate this through someone just like the person who is enquiring about them.
3. They are clear about how they operate
These are how they tell prospective clients how they'll be treated. Signs you can see from the outside might be found on their website or sales brochures – they might have step-by-step guides or ‘what you can expect’ explainers, outlining their sales process. It could include information on quotations and estimated timeframes for work. They might have an after-service description on their website that explains how they'll work with a client after work has completed, such as the details of any workmanship guarantees. They might even have videos uploaded to their social media, explaining how they sit down with a client and explain the process of selecting materials before they get their quote finalised.
There are hundreds of ways it can be delivered, but this type of information promises prospects that there are systems and processes in place. This not only gives the impression of professionalism and consistency – but also communicates that it’s a sure bet that the job will be well done.
All of these things inspire a feeling of confidence – especially when done together. A brand puts a visual sign to the experience and reputation, but it’s a little bit more than that. The feeling created through using visuals, insights into working methods and proof of professionalism will naturally generate satisfied clients – and for this, you will always be able to charge a premium price.
Remember - your competitors have had the same practical training on the tools as you, so it isn’t the work itself that’s the difference. A strong brand enables your competitor to charge a premium and still get prospects, so tighten up your own branding so you too can charge more, and still get plenty of clients through the door.
Sian Wingate from Tradie Terms is our new guest blogger! She runs an online contract training programme designed for tradies over at www.tradieterms.com. As a legal expert in tradie contracts, we’ve brought her on board to share her contracting and legal top tips with you every month from the inside track on the nuts and bolts of your terms of trade and building contracts to contracting systems tips.
If you want to access some more of her top tips, download her FREE guide: '5 simple steps to getting paid faster' right here.