Stop Negotiating Against Yourself

⏱️ 8:11 🎤 Tom Reber

AUDIO EPISODE

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The Self-Negotiation Problem

Most contractors reduce their prices before the customer even sees the estimate, driven by fear of rejection.
0:46

Lie 1: Need to be Competitive

Don't base your pricing on competitors who likely don't know their own numbers; aim for profitability, trustworthiness, and value.
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Lie 2: Charge the Going Rate

The 'going rate' is often set by misinformed contractors, and your prices should reflect your actual costs, goals, and value.
2:49

Lie 3: Make it Up in Volume

More revenue doesn't fix broken pricing; it accelerates financial problems and leads to owner burnout without profit.
3:56

Lie 4: Charging More Isn't Fair

Undercharging negatively impacts employees, customer service, and your family, making it an integrity issue, not fairness.
5:28

Courage Over Math

The math for proper pricing is simple; the real challenge is having the courage to state and stand behind your justified price.
6:23

Build Price Confidence

Confidence comes from presenting your number and letting the customer decide, not from pre-emptively lowering it.
6:52

Set a New Pricing Floor

Analyze past jobs to see lost profits, then commit to a new pricing floor that reflects your actual value and costs.

Speakers

Tom Reber

Host

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Stop reducing your prices before presenting them; your fear of rejection is likely costing you money.

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Do not base your pricing on 'competitive' rates set by contractors who may not understand their own costs.

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Your prices should be derived from your actual costs, business goals, and the value you provide, not an arbitrary 'going rate'.

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Avoid the trap of 'making it up in volume'; broken pricing multiplied by more jobs only leads to faster financial ruin and burnout.

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Understand that undercharging isn't 'fair' but rather an integrity issue that harms your employees, customers, and family.

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Calculate your direct job costs and multiply by at least two to determine a profitable sales price, as the math is simple.

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Build price confidence by clearly stating your price and allowing the customer to respond, rather than trying to make the price 'feel safe' to you.

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