Had my first sale with this business a couple weeks ago and hopefully someone can learn from this.
We provide a service with many branches and options. I could have probably made two or three times what I made off this sale but it still went well and now I know what to do next time.
The first mistake I made: I basically undersold them on the service. I didn’t want to scare them away with big numbers so I sold them the minimum. They took it and loved it, however now I want to sell them on the rest of the services we provide, which they really need, but because I didn’t tell them they needed it up front, I feel they will think I’m trying to milk them if I bring it up now.
I think it would have been way easier to start it off BIG, and then piece by piece work it down into their budget. This way even if they ended up only purchasing the minimum, they would still know the importance of the other services and they could upgrade later on if, say, their budget becomes larger or problems arise that the upgraded service would have preemptively solved.
Second mistake: Not knowing labor costs. A solution I sold them I charged too little because of lack of foresight (which will come with experience). It was a job that should have taken 2 hours but instead took 15 hours. Problems came up that I should have spotted and charged for in advance, and hopefully I’ll be able to next time I do something like this. If I was paying an employee hourly instead of doing it myself I probably would have lost money on this one.
The bright side is they recognized I went WAY above and beyond to make it work. A monthly contract is now in the works.
Bonus Tidbit! If you are a contractor or consultant, limit the amount of free work you do. What I mean by that is, for example, if you do a quick 15 minute fix for a customer and you say oh no worries I won’t charge for it, it was only 15 minutes whatever. That’s how the customer will now value your time. You HAVE to value your time (even if it was only 15 minutes), because if you don’t then your customer won’t either. When you charge for a job, you’re not just charging for the time you spent, but also the expertise and the skills you might have spent years honing.. you could call that the MAGNITUDE. Once you do that one free 15 minute fix, then they call you back for another quick 15 minute fix, and another and another.. They think oh it’s just 15 minutes whatever. Before you know it you’re doing 3 of these a week plus travel time and maybe wear and tear on your tools but how the heck do you charge them for something you’ve provided for free in the past? It’s tough because that one free fix sets a big precedent. This isn’t a hard and fast rule, just one that I follow now after a tough lesson or two and it’s paid dividends.
I hope some of you can learn from my experience!
We provide a service with many branches and options. I could have probably made two or three times what I made off this sale but it still went well and now I know what to do next time.
The first mistake I made: I basically undersold them on the service. I didn’t want to scare them away with big numbers so I sold them the minimum. They took it and loved it, however now I want to sell them on the rest of the services we provide, which they really need, but because I didn’t tell them they needed it up front, I feel they will think I’m trying to milk them if I bring it up now.
I think it would have been way easier to start it off BIG, and then piece by piece work it down into their budget. This way even if they ended up only purchasing the minimum, they would still know the importance of the other services and they could upgrade later on if, say, their budget becomes larger or problems arise that the upgraded service would have preemptively solved.
Second mistake: Not knowing labor costs. A solution I sold them I charged too little because of lack of foresight (which will come with experience). It was a job that should have taken 2 hours but instead took 15 hours. Problems came up that I should have spotted and charged for in advance, and hopefully I’ll be able to next time I do something like this. If I was paying an employee hourly instead of doing it myself I probably would have lost money on this one.
The bright side is they recognized I went WAY above and beyond to make it work. A monthly contract is now in the works.
Bonus Tidbit! If you are a contractor or consultant, limit the amount of free work you do. What I mean by that is, for example, if you do a quick 15 minute fix for a customer and you say oh no worries I won’t charge for it, it was only 15 minutes whatever. That’s how the customer will now value your time. You HAVE to value your time (even if it was only 15 minutes), because if you don’t then your customer won’t either. When you charge for a job, you’re not just charging for the time you spent, but also the expertise and the skills you might have spent years honing.. you could call that the MAGNITUDE. Once you do that one free 15 minute fix, then they call you back for another quick 15 minute fix, and another and another.. They think oh it’s just 15 minutes whatever. Before you know it you’re doing 3 of these a week plus travel time and maybe wear and tear on your tools but how the heck do you charge them for something you’ve provided for free in the past? It’s tough because that one free fix sets a big precedent. This isn’t a hard and fast rule, just one that I follow now after a tough lesson or two and it’s paid dividends.
I hope some of you can learn from my experience!
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Last edited:
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
