Jan 29, 2019

The Value of Experience

The Value of Experience

The dilemma of setting prices. It’s a struggle every business owner faces. You want to be fair and not gouge customers for doing something you’re good at. On the other hand, the whole point of running a business is making a living, and that’s just the minimum goal. Most important, the best-case scenario is that you make a profit and build something successful to leave as a legacy or sell to fund retirement or your next venture. Therefore, it’s essential to never underestimate experience value. No matter how easily it comes to you, you have something to offer customers they can’t do for themselves. Therein lies the value of experience.

Never Underestimate Experience Value

Have you heard the story of the ship engine that failed? Practically everyone on the crew tried to fix it, but no one could figure out what was wrong. Finally, the ship owners found a man who had worked on ship engines for 40 years. They brought him in to take a look. He examined the engine carefully from top to bottom. After a thorough inspection, he reached into his toolbox and pulled out a small hammer. Tink, tink. He gently tapped a spot on the engine twice. Consequently, it instantly rumbled to life. The engine was fixed!

A week later, the owners received the man’s bill for $10,000. They immediately got him on the phone.

“What’s this?!” they demanded. “You hardly did anything. Send us an itemized bill.”

Within a few days, they received a simple invoice:

Tapping with a hammer: $2

Knowing where to tap: $9,998.00

Never underestimate experience.

What’s it Worth?

So you’re mechanically inclined. The whole reason you’re in the heavy-duty repair shop game is that you’re like the Truck Whisperer. You can glance under the hood of almost any big rig and know what’s wrong and how to fix it. What’s more, you’ve gotten better at what you do over the years. You’ve also hired on similarly talented techs and shared what you know with them. As a result, you’ve got a crack team of highly talented technicians. Above all, your team has experience beyond tacit knowledge; the things you all can do can’t easily be conveyed in a phone conversation or written down. That’s worth something, and you should charge for it.

When a customer needs work done on their truck, they want an expert. They look for a shop just like yours. That truck is their livelihood, and they’ll pay any price within reason to get it fixed. They’re relying on you, the expert, to do the job right, so they’re willing to pay more for your unique services. The high-quality service you offer separates you from other shops. Your skills and expertise are what makes your services valuable.

Initially, people might not fully understand how good your shop is at doing what it does. Building a reputation for being an expert takes time. Once one or two satisfied customers start talking to colleagues and friends, however, the word will spread. You can help the process along by presenting your shop and yourself as the repair shop of choice. Highlight your knowledge and years of experience in ads and other marketing efforts. When your business and your confidence grows, your income will, too. The value of what you have to offer will be obvious to everyone, and you’ll never underestimate experience value again.