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The Power of Positive Pricing

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Some contractors believe everyone using Guaranteed Pricing are price gougers

Nonsense. Guaranteed Pricing is a pricing presentation method, nothing more, and nothing less.

When you buy a hamburger at a fast food drive through, you’re charged a flat rate. You don’t pay separate charges for the labor to cook it or the materials that went into the assembly. No one gets an itemized list of the individual cost for two all beef patties, special sauce, lettuce, cheese, pickles, onion, and a sesame seed bun (and if you know what that refers to, it dates you, and also shows how long a repetitive advertising message can endure). No one gets a discount for asking them to hold the pickles.

It would be silly if they priced everything separately. It would bog down the process, which is designed to be fast. In fact, the fast food restaurants are bundling burgers, fries, and a drink into a single flat rate priced meal these days. “Give me a #3,” you say. It saves time. It’s easier. It’s simpler.

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When a contractor switches from time and materials to Guaranteed Pricing, the pricing does not need to change. Yet, it often does.

Pricing often does change with flat rate for two reasons. First, many contractors do not charge enough to pay their people well, support their customers properly, pay themselves well, and have a little bit left over for the bottom line. They hesitate to charge enough for a variety of reasons, which include a lack of self-worth and fear.

Guaranteed Pricing won’t persuade a contractor his services are worth more, but it can help overcome the fear his customers will cough and choke when presented with a labour rate that’s higher minimum wage.

Customers don’t choke and cough because they don’t know the underlying labour rate. Frankly, it’s none of their business. I don’t know the labour rate when I get my hair cut, when I visit the doctor, when I buy product off the shelf in a store. I don’t need to know or want to know. Just cut to the chase, give me the price, and let me decide. Guaranteed Pricing allows you to cut to the chase.

The second reason that prices change is things get simpler. No longer does the service company need to tap dance around the price with the old soft shoe. Step to the left and charge a trip charge, truck charge, fuel surcharge, response charge, or what have you. Step to the right and do a quick spin with a first half hour charge or one-hour minimum charge. With Guaranteed Pricing, you can figure the rate you need, bundle it with the material, and present a single fixed amount.

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The “Technician Resistance” Myth

A lot of contractors are afraid of their technicians. They think the technicians won’t react well to going flat rate. In some cases, this has merit. The technicians have bought into the flat rate price gouging myth and get their boxers in a tangle.

Yet, Guaranteed Pricing is easier for the technicians. They don’t have to calculate up the bill. They can look it up. They don’t have to worry about the customer watching them to ensure they aren’t padding time.

Technicians will adopt Guaranteed Pricing IF it is presented correctly. This means hearing them out. Listen to their concerns. Then address them.

Guaranteed Pricing is new and different to them. As such, it’s a touch frightening. Give them a chance to get used to the idea, to understand why it’s important, how it benefits them, and so on. A heavy-handed mandate is doomed to fail, while a training approach will speed a successful implementation. Remember, tens of thousands of technicians have managed to successfully adopt Guaranteed Pricing.

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If you would like to see more profits rolling your way, call us today on
1300 307 413 to get started with Flat Rate Plus or Contact Us.


The “Perfection” Myth

Technicians hesitate to adopt Guaranteed Pricing because it’s not perfect. Nothing in this world is perfect. Most Guaranteed Pricing systems are close enough and exceptions can be corrected over time.

If every possible task were found in a Guaranteed Pricing book, it would be impossible to hoist it. From time to time, a technician is going to encounter something in the field not covered. When this occurs, the technician should calculate the flat rate price or call back to the shop where they can do it. If the task is one that will be encountered in the future, it can be added to the next book that’s printed.

When the time for a task is off, it can also be corrected with the next printing. By now, most Guaranteed Pricing systems are stable enough that it’s unlikely many tasks will be off by much. If a task is off, it’s not the end of the world. Finish the job, fix the task for the future, and keep going.

Do not feel the need to perfect the system before starting. If you do, you’ll never start.

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The “One Long Job” Myth

I know one contractor who hesitated for years because of the fear of that ONE job that would run long. He fixed on that and couldn’t move ahead because he might stumble across one job sometime, somewhere, and lose money.

Remember, that ONE job is balanced by others. It’s like that ONE warranty where you lose money. You can afford it because there are many, many more warranties where you make money.

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If you would like to see more profits rolling your way, call us today on
1300 307 413 to get started with Flat Rate Plus or Contact Us.


The “I Can Do It Better” Myth

Many contractors, who sneer at and despise the DIY trade, try to do-it-themselves when it comes to Guaranteed Pricing. They spend countless hours creating their own Guaranteed Pricing system, which often never gets implemented. What a waste!

Guaranteed Pricing systems require an investment, but they return it very, very quickly. Unless you want to get into the Guaranteed Pricing business, it makes no more sense for you to develop your own Guaranteed Pricing system than it does for you to hand build your service trucks.

There are too many good Guaranteed Pricing systems in the market. Buy one, keep it up to date, and go make money doing what you do best.

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If you would like to see more profits rolling your way, call us today on
1300 307 413 to get started with Flat Rate Plus or Contact Us.