A contractor who guarantees their work can charge more because they've removed the customer's risk. Homeworks, a software company, guarantees a 10% revenue increase in 12 months or refunds the client, which justifies a premium price despite the adoption costs of new software.
If you guarantee the work that you do, you're able to charge a premium price. Why? Because when you make a guarantee, you reduce the risk the customer has to incur when they choose your service. And by reducing the risk, you increase the value to the customer. This could be for irrigation. I don't want it to leak as the customer. It could be for when you install plants. I don't want them to die. If someone's painting my fence, I don't want that paint to be coming off within six months. So I can guarantee as the contractor the work that I'm doing. And by doing that, I reduce the risk, increase the value, and can charge a premium price. Now an example, for example, is at Homeworks where we guarantee that people will grow their revenue by 10% or their profit by 10% in the first 12 months. And if they don't, we'll give them their money back. When you do that, you reduce the risk. Because there's a lot of risk associated with switching to a software program. You got to train your team, you have to convert over customers credit card information, train your office and your admin. That's a pain in the butt. That's a lot of risk. But how do I reduce that risk? I guarantee the result that they want.
