The first thing so many painting businesses do is to run around and low ball every estimate. Why?
Because they firmly believe that painting customers buy exclusively on price. But, studies show that for the most part that is not true. Painting customers want the best value.
Best value and that is? Think about what reasons you buy for. Try to get into the mind of the customer. If you have a really nice home in an upscale community, and you want your home to look good, the finish to last (good paint jobs are not cheap, even the cheap ones are not cheap) and actually sometimes cheap things cost more, the first time that you buy, and you pay the second time to do it the right way first. And they want the painting contractor to start and stay until done, not to take the deposit and leave only to work in dribs and drabs, until the owner finally throws the bum out. They want value, and this means a good job relatively priced, from someone they perceive to be honest, hardworking, going to do a good job and is not going to kick the dog, drink on the job and smoke in their house.
People buy for the most part on their emotions; people buy because they like you. Or they trust you. If you take a $5000 paint job, one guy quotes $5000; the other guy quotes $5050. And the client needs to pick one. The first guy looks sloppy, he was late for the appointment, and when he got out of his truck a beer can fell on the ground. The other guy is clean, came on time, and his truck looks like it was just washed. Which will they pick? The low ball painter only thinks the one who is low bidder will get the job. But if you were buying something this big, and you had doubts, would you buy from the low ball or the painter that you were confident in?
What if the prices were $5000, and $5051? Is that enough of a difference? This is supposed to be a 10 year paint job. Spread $51 over 10 years, does it matter then?
What if the prices were $5000, and $5100, at that point what is another $49? What about $5000 and $5200? $5300? Maybe if they need to buy that job badly enough, and they could not feel good about the low ball painter no matter what the price difference, they might even pay a few thousand more.
I have heard the catcalls, at a PDCA dinner that was for getting new members, from the cash painting contractors were sitting at the table all the way in the back. When the speaker was telling the audience about his hourly rate. It was (4 years ago) $65/hour. The goons in the last table were hooting and laughing, the last thing I heard was them saying he was "full of it", and he would never get that price here. And here was Princeton, NJ. If anyone knows the Ivy League Schools and the towns and communities around them. They know that this area has some of the highest paid people in the states. What was funny to me was that I had been talking to this painting company owner, for a few months prior to this dinner and, I was then charging $65 per hour in that exact area.
It is all in the mind. What do you perceive? What does the client perceive? What is their perception of you? If you want to win more jobs at a higher price than your competitors, then think Value, not low price.
By the way just today, I quoted on a new porch and deck that a decorator referred me to. She also referred 2 other respectable painters. I talked for a while about the benefits of the job, (keeping my estimate hidden), never mentioning price. Talked about the benefits of a quality job, from the primer on the new cedar rail, and what to use on the new mahogany deck, mostly emphasizing quality. I felt that they liked me. Finally they asked me for the price, at which time I told them verbally, without the estimate. I said $2196 for the porch work, and $850 to bleach and rinse the house to clean the mildew off. They said, "how do you explain that Harold quoted $1400 and $450 to bleach the house"? Saying nothing negative about Harold, (actually he is a pretty good guy), I just explained what we would do and how much time it would take. Then they said Steve quoted $1800, after that I just said I don't understand their prices.
Long story short, he said can you do both the porch and the wash job for $3000?
I walked out of there with a $1000 deposit. And this happens a lot to me.
Last year in another part of town, I took a $10,000 exterior paint job, my competition was $6000, but I got the job. And hey, we are good.
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