When pricing high-performance air upgrades and duct system renovations, you must focus more on the lifetime value delivered to the customer, and less on the estimated job cost. When you only consider raw costs, you minimize the craftsmanship involved in creating the high-performance results associated with your custom-built solutions.
The recipe for success when pricing these important products includes three main ingredients: Mindset, Toolset, and Skillset.
You may be thinking, “yeah, I’ve heard that message before, so I can just skip this article.” Not so fast! Read on for a fresh perspective on proper pricing strategies for these valuable products that only your team can deliver. The juice will definitely be worth the squeeze.
Profitable Pricing Begins with The Proper Mindset
In his article entitled, “What Are You Worth?” (ncilink.com/Worth), Matt Michel wrote:
“Fail to charge enough and you tell the world you aren’t worth much. Worse, you tell your customers you aren’t worth much.
“Even worse, you tell your employees you aren’t worth much. Worst of all, you tell yourself you aren’t worth much. That’s a horrible message to send.”
So, what are YOU worth?
Aren’t you a high-performance HVAC contractor? Haven’t you heavily invested in the tools and training required to be a craftsman in this trade? As a result of these investments, aren’t you worth more than “low-bid Larry”, the guy who just replaces equipment without ensuring that the entire HVAC system is operating as it should?
Of course, you are!
A Low-Bid Mentality Holds Everyone Back
This low-bid attitude has everyone in the industry fighting for survival and puts the entire industry in a scarcity mindset. It forces you to focus on immediate gratification (closing a sale right now, even when they aren’t profitable jobs) and short-term problem solving (fixing immediate problems without considering long-term safety, health, comfort, and efficiency impacts).
The low-bid mindset perpetuates the false perception that this is a dog-eat-dog industry operating from an “us-versus-them” mentality. This price-based competitive tactic continues the narrative that the HVAC industry is tough and toxic, and everyone is scraping the barrel just to get by.
It doesn’t have to be that way.
Do You Believe the High-Performance HVAC Approach Is Worth It?
If you don’t believe you are worth more, how do you expect anyone else to pay you more? High-Performance HVAC professionals are worth more, but only you can demonstrate that to your team and your marketplace.
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