revised Service Call or ? [RE-wrenches]

[Joel Davidson]

Pricing your service is a complex issue. Here are some thoughts. Feel free to
add to this list.
1. First and foremost, place high value on your knowledge. PV professionals
practice their craft like other professionals (doctors, scientists, attorneys,
etc.). Practice means studying, learning and working to become more proficient.
Many PV professionals spend more time in continued learning than their family
doctor.
2. Have high self esteem. Feel good about your knowledge and proficiency.
Radiate confidence (not arrogance or boastfulness) and you will instill customer
confidence. Make your customer think that you are worth what you charge.
3. Don't sell yourself short. It is one thing to think that your customer can
only afford $20/hour. It is another thing to believe that you are only worth
$20/hour. How much do electricians and plumbers in your area charge? Are your
skills worth at least the same rate they charge?
4. Be very careful to whom you give your services for free. Some people who get
something wonderful for free do not know the difference between priceless and
worthless.
5. Do not misjudge that your customers are poor. For years I projected my
childhood poverty on everyone who told me that they could not afford PV. Most of
my "poor" customers were better off than I could imagine, but were simply
bargaining for a lower price.
6. If you are concerned about losing a job that you want because of price, you
may want to give yourself a little "wiggle room" to lower your price. However,
re-negotiating price only works with some customers.
7. Problem jobs are sometimes worth the challenge, but walk away from problem
prospects. Listen to your "trouble" antenna.
8. More about "trouble" customers and the extended 80/20 rule. 80% of your
income comes from 20% of your customers and 80% of your aggravation comes from
the same 20%.
9. Start your sales pitch by selling your top-on-the-line product. If you can't
sell the Cadillac, sell the Chevy.
10. Very few independent contractors get paid full time every day. To gross
$100,000 a year for your labor, you will probably have to charge $90 to $120 or
more per hour.
11. Place real value on your travel time, travel costs, office phone calls, cell
phone calls, etc.

Baran Galocy wrote:

> Travis,
>
> If you are lucky, you will NEVER hear from him again.  I no longer argue
> about price - I don't have time.  There are plenty of people out there who
> value knowledge and experience.  Now-a-days, I show people like you
> described a_ _ hole and elbows as I am running far away - fast!  Bob-o, et
> al were right on!  You are selling something other than time.  When queried
> about my hours and/or prices, I tell people that I am like a very
> specialized automobile mechanic.  There are not a lot of people like me
> around and my time and services are in high demand.  I liken my hourly rate
> to having a tune-up done.  Look on the mechanic's invoice - he charges 15
> minutes to one-half hour's time to do a "five" minute job.  Why?  Because
> some of those 5 minute jobs take an hour, and you never know when you are
> gonna get one.  I point out that billing is an educated guessing game.  I'm
> juxtaposing turning a profit against offering him fair price.  I used to
> tell people that if a job took less than I estimated, I would refund the
> difference.  The only problem was that there were very few people who wanted
> to pay me more money when the job took longer than estimated.  When I knew I
> had a real tire kicker, I would sometimes blow them off by telling them that
> their job was, in part, subsidizing some other underbid project.  The truth
> can drive people away faster than a story.
>
> In conclusion, you do not (assuming you aren't masochistic) want to do any
> job that YOU have to apply pressure tactics to.  When challenged, you should
> "hear the other phone" or "someone just walked in the door" and ask the
> person to call you back if they decide they want you.  Be that glorious
> combination of firm and understanding - and don't apologize!
>
> Namaste, Baran
>
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