WEEK 3: PRICING
You’re worth what you think you’re worth.
Mechanics are the lowest paid trade in Australia. Even after years of qualifications and continued learning, mechanics earn about the same as unskilled labourers. This is partly driven by an industry that is competing on price, not value.
It’s common to see that when mechanics start their own business, they continue to undervalue their worth. The most common response we receive about pricing is “my customers won’t pay that!”. Well, how do you know? And maybe you’re attracting the wrong type of customers.
The reality is the more we continue to undervalue our services as an industry, the more we’re teaching the market that our services are not worth paying for. Unfortunately, all too often we see independents discounting to win business. Why? You need to put food on the table as much as the next guy. You don’t see the building industry going into a price war. Most people are OK with paying a plumber a $250 call-out fee, yet as mechanics, we often feel like $80 is too much. Why?
Positioning yourself and your business based on value, not price is one of the most important business skills you can learn. In this week’s challenge, you’re going to learn a few game-changing tweaks that will make a difference to your bottom line, in some cases a massive difference. Same hours… more profit!