TCF488: Contractor Q&A – How to Handle Clients Who Use Google to Price Materials?

Tom and Dan address your questions about how to fix your charges, the best way for you to run a painting business, how to deal with customers who have Google at their fingertips, and how you can increase your online presence to grow your business.

In this episode, we talk about…  

Question 1: As a general contractor in upstate New York, I sub out all the work, and my goal is to do high-end residential construction from the ground up. What should I charge when other contractors charge 25%, and I’m charging 15%? 

  • The worst thing that we can do as a contractor is price our work based on the going rate
  • When it comes to money and pricing your work, there’s an asterisk — means there’s more to the story
  • The blend of all the margins that you’re marking up should be around that 50% mark
  • Know the difference between margin and markup 


Question 2: I have been running my residential painting business for four years. What is the best advice you can give on how to get leads for a painting business?

  • Find GCS that look like they’re working on projects.
  • Chase people that control multiple wallets.
  • A single homeowner just has their own budget, and a good influencer could have dozens of budgets
  • Build your brand and let people know who you are


Question3: I have a plumbing business. Which is the best way to deal with customers who have Google at their fingertips and tell us how much material really costs? 

  • This is about your brand and attracting the right customers
  • Look at your branding, your website, your sales process, and the way you are pre-qualifying people
  • When you build the trust level, this issue goes away. 
  • Buy stuff at retail price MSRP, and put all the money in your labor bid
  • Triple or quadruple your labor fuel so you can recover all your overhead in the labor


Question4: I’m starting a fence stain and seal business. What is the best way to increase my online presence?

  • Be on social every day, build your brand on social media, and invest in a content-rich website. 
  • On your website, describe your pricing and introduce your team
  • Consistency is important for creating an online fingerprint since it takes time


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