There is a common problem that occurs to most tradespeople. In such a highly competitive industry in can be easy to get caught in the price war. The problem with trying to compete on price is, there’s always an opportunities lying in the shadows waiting to undercut you and steal your job. Therefore it is important to re-evaluate your business plan and ensure you have a strong value proposition.

What is a Value proposition?

(In marketing) it is an innovation, service or feature intended to make a company or product attractive to customers. So, I guess you are asking yourself, how does this apply to my business? As a Tradie you need to identify what this is for you? Is it that you are prompt to respond to customers, you are on time to every job, clean and well-presented or is it your attention to detail and your superior workmanship? It is probably a combination of all of these and much more. It is important to understand where you can provide value to you customers, and use it for your advantage.

By positioning yourself as an industry leader and standing out from the crowd, you have the ability to command a premium in price, but you must offer a superior service and greater value for money. It is not about being the cheapest, it is about being the best at your trade.

If you wish to command this premium you must ensure your back end systems are in place. These include everything from the way you answer the phone, the way you manage your jobs and even your accounting system.  If you want to sit down with a trade accounting specialist to identify your value proposition and to help implement systems to support it, give us a call today!