HVACR Business

APR 2017

Help hvacr contractors master the critical components of business management.

Issue link: http://digital.hvacrbusiness.com/i/810030

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Page 18 of 27

19 HVACR BUSINESS APRIL 2017 www. hvacrbusiness .com I had a business coach who once said that business is like a game of volley- ball. You can be concerned about the other team, but once the ball is in your court, it doesn't matter whether the other team is good or bad. Your job is to make sure you don't "drop the ball" and send it back over the net. If you can do that consistently — that is, take care of your end of the bargain — then it doesn't matter how good the other team is; you will win. is analog y is true in business, especial- ly in the construction industry. e point of this example is that your competition is not who you think. It's not the other guy. Mostly, your competition is just you. Most contractors are concerned if the customer is going to get three bids. ey don't like being "price shopped." ey want to be the last one in with their bid so the customer remembers them, or several other versions of these concerns. ere are several factors to consider when you are trying to win in a competitive marketplace. Winning the Price War As stated earlier, most contractors wor- ry way too much about their competition. is worry misses the key point. At the end of the day, there is only one reason why a customer buys from you or from someone else. People buy from people they like and trust. Or, in one word, people buy based on rapport. is is true in a low dollar service call or a high dollar project. It is true in a residen- tial remodel and a commercial project. Pick the Right Price Point In every competitive marketplace, un- derstand that there is a customer at every price point. ere's a customer at a low- price point, a customer at a middle-price point, and a customer at a high-price point. e first thing you have to decide for your- self is which price points are you going to compete in. Do you want to be the company that is the cheapest? Amazon decided to be the cheapest at shipping products. Being the cheapest is a very different game and a game that only large companies can win. Many companies in HVACR are small, and small companies do not win the price game. ey may think they have less over- head — but a small business trying to be the cheapest in the market is going to drive itself down to a grind. is is the reason why most contractors have work but don't make any real money — they just stay busy. If you want to build a successful com- pany that makes money and gives you, the business owner, a decent life, you have to pick your price point right. e higher up the food chain you go in the price point, the easier it is to be successful. at's what most people don't understand. A far better way to win the price war is to be the most expensive or to be in the top price brackets. en you have to be more expensive and still win the job. How do you do that? Build Rapport Quickly is is where we go back to the origi- nal concept. e key to any business rela- tionship, short term or long term, is that people buy from people they like and trust — which means people buy from people who take the time, make the effort, and spend the energ y to build rapport. e higher up the price brackets you go, the more powerful this concept becomes. Your competition is not who you think. It's not the other guy. Mostly, your competition is just you. Know Your Competition BY KARAN DHILLON STRATEGY Come #CelebrateWithNATE 20 Years of Technician Excellence! natex.org/celebratewithnate To thank you for making NATE the industry's certification standard for 20 years, come #CelebrateWithNATE all year long with online store discounts, NATE testing promotions, social media contests and more! continued on page 20

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