A Conversation About Perceived Value

A Conversation About Perceived Value

A customer asked a contractor friend of mine how much it would cost to do this project.

My friend gave him a proposal: $4500

The customer responded: That’s seems really high.

My friend asked: What do you think is a reasonable price for this job?

The customer answered: $2500 maximum

My friend responded: Ok, then I invite you to do it yourself.

The customer answered: I don't know how to.

My friend responded: Alright, then how about for $2500 I'll teach you how to. So besides saving you $2000, you'll learn valuable skills that will benefit you in the future.

The customer answered: Sounds good! Let’s do it!

My friend responded: Great! To get started, you are going to need some tools. You will need a chop saw, table saw, cordless drill, bit set, router, skill saw, jig saw, tool belt, hammer, etc..

The customer answered: But I don't have any of those tools and I can't justify buying all of these for one job.

My friend responded: Ok. Well then for an additional $300 I can rent my tools to you to use for this project.

The customer answered: Okay. That’s fair.

My friend responded: Great! We will start the project on Monday.

The customer answered: I work Monday through Friday. I’m only available on the weekends.

My friend responded: If you want to learn from me then you will need to work when I work. This project will take 3 days so you will need to take 3 days off work.

The customer answered: That means I’m going to have to sacrifice my pay for 3 days or use my vacation time!

My friend responded: That’s true. Remember, when you do a job yourself you need to account for unproductive factors.

The customer answered: What do you mean by that?

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