How can I get customers to understand the value of a licensed contractor (plumbing, heating, etc) vs a cheaper, unlicensed contractors?
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You can start by first understanding that if you are walking right into the commoditization of your service or product, you will not change anything. Meaning, and in example; if a contractor goes in and gives an estimate. And so do every other bidder; then welcome to the commoditization wagon. Alternatively, if you can find a flanking value that others have not done then you can catch your prospect and competition off guard. Here is one example. A Realtor that offers a free roof inspection as part of their pre- and post- CMA analysis. While all others are offering the same old CMA analysis approach and then the % commission bid; offering something different and unexpected can give you that bump or nudge ahead of the rest. In another example, if all other contractors are bidding price; but you offer free annual inspections for 5 years (even as most won't make use of them) then that is something others do not have in their "price" offer.
What won't happen is that it won't get created from a quick, "I'll add this type insert." You have to think about it. Do some research on things you can use to flank. If it was a no brainer everyone would do it; and, most think they are doing so but miss the mark.