Should You Cut Your Prices to Win a Project? – Ask Evan

– Carmichael and welcome to another
edition of ask Evan in today’s video I’m
going to answer questions from one of
our readers Gideon who was trying to win
a whole bunch of projects and when he’s
bidding on them he’s often asked to cut
this price and the problem is if he cuts
his price he might win the project but
his pup is gonna be really reduced so
he’s asking for my advice and what to do
so Gideon my advice for you first of all
make sure that you are competitive you
know if you’re coming in that twenty
times more expensive than everybody else
there’s gonna be hard for the customer
to say yes so make sure there is some
competition there the second thing
though is I don’t encourage you to be
the low cost provider it’s really hard
to build the sustainable business on
being the cheapest offer because
somebody’s always gonna come in and try
to undercut me instead what I’d
encourage you to do is try to find other
ways to add more value to the deal and
so could be through better service or
you’re adding different products or
features or benefits that your
competition can map so you need to find
a competitive advantage besides price
that can help differentiate you and make
customers want to work with you because
we’re that they’re going to pay a
premium for so whenever I’m bidding on
projects
I’ll never the low cost provider and I’m
always trying to add other services and
benefits on top of it because they’re
working with me instead of somebody else
the last thing is if you are bidding on
a project than they are they do ask to
take money out never just take the money
out always try to take something else
out of the deal so they want to cut you
know X number of dollars from the deal
saying okay we can accommodate that but
we have to take out these pieces of the
deal so that way it doesn’t look like
you’re really you know flexible on your
pricing and then you do offer a lot of
value and it’s helps with the
negotiation so they may end up with a
better deal and may cost him less but
it’s also not costing you as much to put
into the deal as well so try to work out
the different components of the deal and
anytime they’re asking to take money out
always take something out
on your end of the deal as well it’s not
just cutting the price I hope that helps
get in if you guys liked the video
please give it a thumbs up I’d also love
to hear your thoughts and feedback if
you want to leave a comment below and
stay tuned to the next episode
you