May 10, 2022

Avoid the Commodity Mindset

Avoid the Commodity Mindset

As prices for all things construction related continue to go up, it is easy for builders and remodelers to be reduced to a commodity. The construction industry has done a poor job of positioning anyone in the skilled trades as professionals. The public expects us to provide free estimates and low margin prices in return for a high quality professional level of service. Something has to give.

Sure our projects contain quite a few commodity type items but what we are really providing is a high level professional service and we need to make sure we are compensated for that. It’s easy to fall into the trap of becoming a commodity contractor but a shift in your mindset can change that. More often than not customers are looking for the lowest price because they have been given no other choice. Here are a few things to consider:

  • Do a better job of qualifying your leads before you rush out to give someone your valuable knowledge for free
  • Avoid the ballpark estimating hamster wheel. It’s very tough to jump off
  • What sets your company apart from the others? Are you offering something the competition is not?
  • Position yourself as an expert in the field. Focus on the types of projects you are best at and be sure to get that message across to your customers
  • Be firm when it comes to negotiating your prices. You need to let potential customers know why you charge what you charge and why it is such a value. Once you start backpedaling the commodity game has begun

The old saying Something is only worth what someone is willing to pay for it" is relevant today more than ever. You must offer your customers a compelling reason to do business with you. Changing your mindset away from commodity contracting is essential.