As the old saying goes “time is money”, therefore being more efficient with your time means having more of it to make more money. There are simple ways to become more efficient with your time and today I want to discuss one of the easiest ways you can save hours and hours. As you may have guessed based on the header, establishing a minimum is the time saver we will be discussing today. There are so many benefits of establishing a minimum, but the main purpose is that it will keep you from running around all day wasting time on people who are unwilling to pay your price.
As great as this tactic is, establishing a minimum isn’t just setting a random price, it is about knowing your true breakeven cost and setting it based on that number. If you just set a random number as your minimum without knowing your cost, you may actually be too low and still be losing money or too high and turning down work for the wrong reason. Therefore, before you establish your minimum, find your breakeven point.
If you are like most people, running leads all day that turn out to be a waste of time is one of the most frustrating things you do. To help cut down on this problem, set your minimum and tell it to everyone that calls in. This way, when people hear your minimum those who are looking for a price point below your minimum can move on and find someone cheaper and you can move on to a lead that will actually lead to a customer. A thought to keep in mind with giving your minimum is to remind the caller that this may not be their cost just because they believe they have a “small yard.”
Another factor to remember about minimums is that you are not pricing the job over the phone. The misconception that a minimum is any kind of sales pitch or final answer to a lead’s price is one that must be overcome. The truth is, the minimum you give someone means that you are not willing to work for any less than that number, because anything less and you are no longer making the margin you set as the least you will accept. Once you give someone your minimum, stick to it. If you tell someone you won’t accept less than a certain price then give in, what you are really saying is that you were lying to them and that is not how professionals work.
ESTABLISH YOUR MINIMUM ASAP. It will without a doubt save you from running around on leads who aren’t willing to pay your prices. Remember though, your minimum needs to be based off YOUR breakeven point, not a random number you pull out of the sky or based on your competitor. For more information on establishing a minimum, check out the full video.