How to Charge More as a Contractor

💼Learning which clients to take and which to avoid is crucial as 80% of your trouble can come from 20% of your clients.

🚧Managing uncertainty for clients by reducing their fear and clearly communicating the project vision can increase their willingness to pay more.

💰Stop undervaluing your work and charge based on the real value you provide. Understand the true value of your skills and experience.

🆓Build strong relationships with your competitors to share experiences and gain a better understanding of pricing and industry standards.

🔁Use change orders to handle unexpected problems and provide extras without undermining your profitability.

How can I communicate the value of my work to clients?

—You can communicate the value of your work by understanding their vision, sharing your experiences, and offering creative solutions.

How do I identify the right clients for my contracting business?

—Identify the right clients by evaluating compatibility, project requirements, and their track record with other contractors.

How can I increase my profitability as a contractor?

—Increasing profitability requires managing uncertainty, bidding with extra costs in mind, and using change orders to handle unexpected problems.

Should I always bid low to win more contracts?

—Bidding low may help you win some contracts, but it often leads to lower profitability. It's crucial to consider all costs and value your work appropriately.

How can I build better relationships with my competitors?

—Build better relationships with competitors by starting conversations, sharing experiences, and maintaining a professional network in your industry.

00:00This video discusses how contractors can charge more for their services by understanding the right clients and effectively communicating the value of their work.

02:45Identifying the right clients is crucial as a significant portion of trouble can come from a small number of difficult clients.

05:20Managing uncertainty and reducing fear in clients can increase their willingness to pay more for your services.

08:38Stop undervaluing your work and charge based on the real value you provide, considering the true cost of labor, materials, and overhead.

12:15Building relationships with competitors can provide valuable insights on pricing and industry standards.

14:40Use change orders to handle unexpected problems and provide extras without undermining your profitability.