A contractor recently called me, panicked. "Mark, no one is buying. I just lost my third job this week to a guy quoting 20% less than me. I think I need to cut my margins just to keep my crews busy."
I told him what I tell every contractor: The moment you drop your price to win a job, you admit that your service is a commodity. You are telling the homeowner that a roof is a roof, a deck is a deck, and the only difference between you and the other guy is the number at the bottom of the page. You cannot survive in this industry as a commodity.
Decoupling from the Commodity Trap
To stop competing on price, you have to decouple your service from the materials you install. You are not selling 2x4s and concrete. You are selling an aesthetic outcome.
Let's say you are quoting a new stamped concrete patio. If you just send an estimate for "400 sq ft of stamped concrete," you are a commodity. The homeowner will divide your price by 400 and compare your price-per-square-foot against the next guy.
But if you use software for patio installers to show them a rendering of a beautiful Ashlar slate stamped patio curving elegantly around their existing landscaping, with a built-in fire pit, you decouple from the square footage metric. The homeowner is no longer buying concrete; they are buying that specific design. And since you are the only one who showed them that design, you are the only one who can build it. You effectively create a monopoly of one.
Applying Value Selling to Exterior Trades
This principle applies to every trade that touches the exterior of a home.
- Roofing: Don't sell asphalt. Use software for roofing contractors to sell the architectural contrast and curb appeal of a premium dimensional shingle.
- Painting: Don't sell gallons of paint. Use software for painting contractors to sell a modernized, refreshed facade that makes their neighbors jealous.
- Outdoor Living: Don't sell composite boards. Use software for deck builders to sell a multi-level outdoor entertainment space.
The Confidence of the Visual Anchor
When a homeowner is nervous about the economy, they don't stop spending money—they just stop taking risks. Spending $20,000 on a blind paper quote is a massive risk. Spending $25,000 on a photorealistic rendering of exactly what they are going to get is a safe bet.
Visual software acts as an anchor of certainty. It proves that you are a professional, that you have a plan, and that the outcome is guaranteed. In a down economy, certainty commands a premium. Hold your price, elevate your presentation, and let the cheap guys race to the bottom without you.
— Mark Williams