Too Expensive

My sister came over for breakfast on Sunday morning. She was working out a financial analysis with me. She's brilliant at that.

We started to talk about home improvements. She wants to get some painting done. I said why don't you call my friend/colleague Claire http://www.paintingladies.blogspot.com/ . "She's too expensive." my sister replied.

"Who's going to do it?" I asked.

She said, "Ronnie, a kid in the neighborhood. He said he'd do it but he never shows up when he says he will." I asked "How long has that been going on?" She replied "a couple of months."

"There's a guy at church who lost his job. He came over took a look at the job and said 'not interested,' my sister went on.

I wish my sister would realize that these solutions are not really cheaper and she should just call Claire. Claire will show up, be prepared and can be 100% trusted in your home. She will quote a fair price but it won't be as cheap as Ronnie or the unemployed guy from church.

Claire is not cheaper because she knows the value of her work. There is a cost to travel, being on time, scheduling jobs, having the right materials, understanding the scope of the job and planning to execute in a timely manner. She considers that cost and adds additional budget for her time and expertise. This is her business and she takes it seriously.

If my sister factored in the cost of her time, living with her unpainted space for months and managing contractors that don't show up she'd realize that Claire is a real value.

I like to do business with professionals that know their value.

Price

There's one theory in sales that the price should not be disclosed until the very, very end. The prospect needs to listen to your features and benefits and understand them fully before you'll give them a number.

As a consumer I find that frustrating. I want to know if the product or service is within the range of something I can afford. Once I know the price I'll be more interested to understand the features and benefits and the value that the price is based upon.

I have two apartments to rent and thought it would be fun to advertise them on a local Chicago blog. A friend suggested a national blog with a local presence. I've looked at the site, read the media kit, sent an email, exchanged a phone call and still don't have a price. I'm getting frustrated with this national blog with a local presence. I think I'll find some edgy Chicago writer with a loyal readership that'll be grateful some advertising revenue landed in their lap.

With FullCircle Management's services our minimum pricing for a TeleIntelligence B2B calling program is approximately $8,400. That's the price a company might spend on a trade show booth, on a print advertising page, or a direct mail piece. Our programs show consistent measurable ROI. If $8,400 scares a company I'd like to know sooner than later.

Our CRM, SalesInSync, is $30 per user per month - the cost of one lunch per sales person. If a company will not invest $30 a month in their sales person, I'd like to know sooner than later.

My philosophy is to put your number on the table and begin negotiating from there.

You Paid Too Much!

I'm rehabbing a building on Chicago's NW Side.

The process included totally remodeling two rental units: new kitchens, new baths, new tile, refinished floors, new plumbing, new electrical, new windows, new appliances and a repaired roof.

I mentioned my project to a realtor who is in the business of buying properties, fixing them up and selling them for a profit.

When I told him what I paid without asking one question about the scope of the work or the quality of the execution he exclaimed "you paid too much! Next time let me look at the quotes."

I was a little disappointed he didn't want to talk shop. I thought he'd benefit from the referral of my contrator.

Leases expire in Chicago every April and September. I wanted to get my units ready for rental by October 1. I was working under an extremely tight deadline. I found a contractor that has 40 rental units of his own. He knows the business.

When I met the electrician, the plumber and the carpenter, I realized right away these people were not laborers, they are craftsmen. They took pride in the work. They described every challenge, pointed out every detail and proudly discussed their solutions with me. The team was mindful of my budget and time constraint. They made low cost decisions where they could never compromising on quality.

Sure, the General Contractor made a little profit by coordinating and managing the team of contractors. He had best recommendations for all my challenges and had a team that could produce the work based on past, proven success. There's tremendous value to that and he earned his markup.

I wish my realtor friend would've discussed the process with me a little bit. Sure, I could have probably paid less. I could have taken their bids and had other contractors under bid them.

I choose not to do business that way. I may have paid a little more but gained more in some areas and received more value in others. I received more benefit than I can measure.

I will use this contractor again and again.

No, I did not pay the cheapest price.