The Problem with Being Too Cheap Cheap Isn’t a Strategy

The Problem with Being Too Cheap Cheap Isn’t a Strategy

Contractors often believe that low prices will win more work. And maybe they do — but not the kind of work you actually want.

When you undercharge, you attract bargain shoppers who will nickel-and-dime you, delay payments, and complain when you raise your rates.

The truth is, pricing low doesn’t create loyalty. It creates resentment — from you and from the client.

You deserve to be paid fairly for your skill, your risk, and your experience. And the right clients will respect that. Your job isn’t to be the cheapest — it’s to deliver the most value.

Raise your rates. Explain your worth. Stand by your numbers.

Real World Mistake & Lesson:

A remodeling contractor was consistently 15% under market. He feared raising prices would scare clients away. But when he finally did, he lost two tire-kickers and gained three serious clients — and finally had room for profit.

 Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com

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Larry M. Weinstein, CPA—the Cash Flow CowboyTMis a trusted advisor for tax planning and resolution strategies for business owners and contractors in Texas and beyond.

Minimize your taxes. Boost your cash flow. Keep more of your hard-earned money. 

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