BELIEVE IN FAIRY TALES?
Your price isn’t too high; your value is too low.
“Price is what you pay. Value is what you get.” – Warren Buffett
When your value is lower than your price, regardless of what you’re selling (e.g. roof, appointment, first date, etc.), your deal is dead.
Everything in life has a price!
The time it took me to write this article, and the time it takes you to read it, both have a price.
We could’ve both been doing something different with ourselves, but we chose to invest in each other because the value is greater than the price. You’ll read this article all the way until the end because you believe you’ll find tremendous value here.
VALUE IS GREATER THAN PRICE
If you aren’t making sales, your price is greater than your value.
If you aren’t getting appointments, your price is greater than your value.
If you aren’t doing inspections or estimates, your price is greater than your value.
If you aren’t even getting a chance to talk at the front door, your price is greater than your value.
Your #1 Strategy for increasing sales should always be to first increase your value. Cheap prices are a curse because competition is stronger at the bottom, and profits are also smaller. As the late Jim Rohn often said, “Don’t wish it were easier; wish you were better.”
If you need to see it in a math formula, think of it like this: value > price
Alternatively, you could express the formula like this: price < value
PRICE IS LESS THAN VALUE
There will always be somebody willing to do the job you just sold cheaper.
It may be a dollar cheaper, or it could be a thousand dollars cheaper, but always cheaper.
There’s always the story of that one customer that got away because somebody else was willing to do it cheaper — even cheaper than what it would cost you to do the work.
Imagine the possibility that your customer didn’t get away because they found a cheaper price. They actually got away because they found more value for the price they were willing to pay.
You may say, “Well, our company does a much better job than that company!”
You may be right, but “a much better job” was not what your customer valued. They valued something else, and you lost the business.
You may also say, “Well, we’re licensed, certified, master, pop star, super-duper, bonded, rock star roofers.”
Again, I’m sure you are, but that’s not what your customer valued, or at least, not what they value as much as you, and that’s why you lost the business.
THE FAIRY TALE
Whatever fairy tale you’re holding on to about why all prospects should magically gravitate towards you, and ignore all others, is almost always based on the false assumption that your value is obviously greater than your price.
Here’s the reality check: When your value really is greater than your price, all customers will magically gravitate towards you, but they aren’t, are they?
Money will always follow value, regardless of the price.