ForConstructionPros.com

A recent article speaks of an alternative music band, Radiohead, from Europe that is letting their fans decide how much to pay for their newly released CD after the fans have heard its contents. There hasn't been any feedback yet on how the new marketing idea is going, but it got the attention of some pretty big producers in the music industry. "Brilliant" was one response from a producer who has worked with Paul McCartney.

Can you imagine allowing your customers to determine just what they thought your work was worth to them? I've had some contractors sarcastically admit to me that the customer "Ain't going to pay one dollar more than they think the work is worth." However, this comment is usually associated with customer negotiations before the bid is signed.

Let's consider the possibilities of a contractor who would perform work for customers and then allow the customers to determine its value. What might be some immediate problems with this approach?

First, most customers are not familiar with price of materials, labor costs, equipment costs, etc. Second, a contractor would have to have some financially deep pockets to front the money to pay for needed materials, equipment, labor, secure proper local licenses, etc. Third, there is the issue of profits. It would initially appear that most customers would rather pay less for their work, not caring how much less money in profits their contractor realized.

Lest you think this argument is over, consider still the possibility of a contractor, maybe even you, doing something totally different in your marketing effort than any other contractor has ever considered. What would you have to be sure to take care of to give you the best chance of getting paid what you think you are worth? Let's take a look at five "non-negotiables" that would have to be in perfect working form.