The Ultimate Pricing Strategy For Electrical Business Owners

Pricing can make or break your electrical business. After working and making consistent profit in the electrical industry, I believe that pricing boils down to three main strategies. And here they are!


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DON’T Feel Guilty About Your Pricing

The first rule of pricing is you should never feel guilty about it. You have accumulated years of knowledge, skills, and experience, you have based your pricing on market research and competitive analysis, and it is in sync with the service you offer. So why should you feel bad about it?

In fact, I would like to point it out that when people make you feel guilty about your pricing, it is not your fault that they are in a place in life where they can't afford your services.

Pricing also matters because you don't realise it till you can't pay taxes and bills and generate a negative income for 3 years. Thus it is really, really important for you to be solid about pricing, work it out. Sit down and realise that you are charging according to the time component. Reassess every item. Micromanage and micro-adjust every individual item. Thus you can make sure that the time component is included in your pricing every time.


Seek People Who Can Afford Quality

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When you get to the property, make sure that the client you are working for can afford the value you are trying to provide. Because being busy all the time doesn't make you money. What makes you money is you working for people who can afford to improve their life -- for example people who can pay for replacements, fittings, and improvement.

To make sure that you reach out to the crowd who can afford your services, you can create an avatar based on the demographic. It can be older people who have saved up money such that a 2K bill won't hurt them. To be more profitable, you have got to target demographics with their income level in top 30% or more. To access the top bracket of people, you need to be relentless on phone, ads and learning! Always be improving, networking, and educating yourself, so that when you do meet someone who can afford to pay for your top-notch service, you will be able to convert them.


Price with Your Most Valued in Mind

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Whenever you are setting out to price your product or service, you have got to price with your most valued in mind. You have to use your family as the ultimate leverage when people tell you that you are too expensive!

Come to think of it, every time someone tells you that you are expensive and if you go ahead and discount, you are giving away your family's money as a discount. Should you do that? Nope, never!

When you are confident about your pricing and build competence around it, you won't feel like you need to discount to get a job. You have to understand how pricing works so that you can avoid falling into the discount trap.

Keep learning constantly, do it long enough. In the book Outliers, Malcolm Gladwell conducted a study which showed that to absolutely master a skill you have to “deliberately practise” it for 10,000 hours! You have to keep reminding yourself to study, learn, improve and do better because you might get busy and forget it.

Our Electricians Success Academy is constantly there for you so you can come back to rewatch the stuff.


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Electrical Business Lesson - Pricing Strategy