Problem: the construction entrepreneur wants to earn more but believes the only way is to work more.
Solution: three steps to increase the price without losing customers, working on perception, courage and differentiation.
Result: higher margins on the same job sites, without increasing hours worked.
"If I raise my prices, the customers go to the competition"
This is the fear that paralyses most construction entrepreneurs. And in some cases, it's justified. If you are perceived as "just one of many", raising your prices will lose you customers. But the problem isn't the price. It's the fact that you are perceived as just one of many.
There are companies in your area selling similar services to yours at much higher prices. And customers pay them. Not because they are better than you (maybe they are, maybe they aren't). But because they have worked on their perception in a way that you haven't.
The good news: you don't need to change your product, you don't need to change your region, you don't need to become a different company. You need three steps.
Step 1: change the way you present your work
The product or service itself matters less than you think. How you present it is what counts.
Two companies sell the same type of job. The first sends a quote as a PDF with a list of items and the total at the bottom. The second carries out a detailed site survey, presents a proposal with photos of similar work already completed, includes testimonials from previous customers and explains why they have chosen those specific materials.
The service is exactly the same. But the second company is perceived as more serious, more professional, more reliable. And it can charge more.
Concrete things you can do:
- Present quotes in a neat document, not a threadbare single page
- Include photos of similar work you've already done
- Add 2-3 testimonials from satisfied customers
- Explain what is included in the price (and what isn't)
- Describe your working method, step by step
It costs nothing. It takes a little time the first time round, then it becomes a template you use for everything.
Step 2: ask for the price you want (without apologising)
Many construction entrepreneurs are afraid to "shoot for a high price". They do the quote, calculate the correct margin, and then lower it a bit "because otherwise they won't sign".
It's a trap. If you drop the price before the customer even asks you to, you are negotiating against yourself.
The truth is that if your work solves a real problem for the customer (and it does), you have every right to ask for what it's worth. A leaking roof, a window that doesn't insulate, a job site that has to start by a certain date: these are real problems for the customer. And a professional who solves real problems shouldn't have to apologise for the price.
A window and door specialist in the Veneto region stopped writing discounts into his quotes and increased his price lists by 12%. Out of 25 jobs in a quarter, he lost 3. But on the 22 that remained, he earned 26.400 € more than in the previous quarter. He worked less and earned more.
Rule of thumb: present the price with confidence. If the customer asks for a discount, don't drop the price. Rather, take something out of the service. "If we remove finish X and use material Y, I can take 10% off." That way, the customer understands that the price corresponds to a value. If you subtract value, you subtract price.
Step 3: find what makes you unique
This is the most important step, and the hardest. You need to find the answer to a simple question: "Why should a customer pick you and pay more?"
If the answer is "because we deliver quality", that is not enough. Everybody says that. It's like saying "our restaurant serves good food". It means nothing.
The right answer is specific and concrete.
| Weak | Strong |
|---|---|
| "We do quality work" | "We hand over every job site with a photographic report of every phase" |
| "We are professional" | "Every customer has a single point of contact from the quote to the end of the job" |
| "We have experience" | "We have completed 40 jobs similar to yours in the last 2 years, here are the photos" |
| "We use good materials" | "We only use X-certified materials, and here is why" |
Your differentiating factor might be your working method, your specialisation, your after-sales service, the guarantee you offer, your speed of delivery. It doesn't have to be revolutionary. It just has to be true, and communicated clearly.
Know your real margin with BAU Gest
To know how much you can raise your prices, you need to know what margin you are making today. BAU Gest shows you the net margin on every type of job, so you know exactly where you have room for manoeuvre.
See how it worksMade
Price is not the problem. Perception is.
A Northern Italian entrepreneur tells me: "I tried raising prices by 15% and I lost two out of three customers." I ask him: "Did you also change the way you present the quote?" No. "Did you add testimonials, photos, an explanation of your method?" No. "Did you communicate to customers what makes you different?" No.
Raising the price without changing the perception is like sticking a higher price tag on exactly the same product. It does not work.
Another case. A floor layer always worked with the lowest price in his area. He started sending a mini-pack to customers prior to the site survey: who he is, how he works, three photos of recent jobs, two reviews. He didn't touch his prices. But his quote conversion rate went from 30% to 50%. Customers were arriving at the survey already convinced. At that point, a 10% increase was natural.
Raising your prices after having worked on your perception is different. The customer sees a professional who presents themselves well, who has references, who has a method. At that point, the higher price becomes consistent with what they are looking at.
The calculation very few people do
If today you are making 20% margin and manage to raise prices by 10% without losing customers, your net margin doesn't go up by 10%. It goes up by much more, because your fixed costs remain the same.
| Before | After (+10% on price) | |
|---|---|---|
| Average revenue per job | 20.000 € | 22.000 € |
| Variable costs | 12.000 € | 12.000 € |
| Margin per job | 8000 € | 10.000 € |
| Percentage margin | 40% | 45% |
| Across 30 jobs a year | 240.000 € | 300.000 € |
The difference is an extra 60.000 € a year. Without a single extra job site. Without a single extra hour of work.
What changes between 6 and 12 months
If you start today, in 6 months' time you will have your quote template ready, your testimonials collected, and your first customers signing without asking for a discount. In 12 months' time you will have a different positioning within your local area. Customers arriving via word of mouth arrive already knowing you are not the cheapest, and they won't ask to be. Your margins are higher and the work is the same.
If you don't start, in 12 months' time you will be exactly where you are today. The same prices, the same margins, the same grind.
30-day action plan
Week 1: collect 3 testimonials from satisfied customers. Ask for them by message, 2-3 lines is fine. Take or dig out 5 photos of jobs that have been done well.
Week 2: redo your quote template. Add a front page with who you are, your method, your photos and the testimonials. Use it on the very next quote you do.
Week 3: write down in one sentence what makes you different. Not "quality and professionalism". Something specific, true, verifiable. Put it on the quote and on the website.
Week 4: on the next quote, put the right price on it. The one that gives you the margin you want. Present it with the new template. Watch what happens.
Where to start
Pick one of the three steps and start with that. Not all three together. One.
If you don't know which, start with the first one: improve the way you present your quotes. It is the easiest and yields visible results quickly.
If you want to understand what margin you actually have today and how much room there is to raise prices, book 30 minutes with us. We'll look at the numbers together. No obligation, no cost.
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