What It Takes

In our culture, there is a disconnect between what things cost versus what people think they should cost.

In 16 years of construction, I don't think I have ever had a meeting with a homeowner where their budget was more than what they needed for the work they wanted to do.

I believe it's mostly because people don't understand what it takes to operate a business. If you work for an organization, chances are you do your work and then you cash your paycheck. You get paid for your time.

But the business that pays you has many other things to pay for.

For example, I just had a meeting with my team. It's important. We need to have these meetings. The team members are getting paid for being at the meeting but this time does not get charged to a specific job. It gets charged to ALL the jobs as an overhead expense.

Same with marketing efforts, insurance, gas, phones, internet, tools, repairs, vehicles, computers, software, furniture, equipment and so forth.

Starting a business and operating a business is no easy task. There's a reason the majority of businesses go out of business.

The next time you try to negotiation a better price for a service, think about what it took to get that service to you. You may develop a whole new appreciation for what it takes.

And for the business owners out there, don't sell yourself short. You worked hard to get to where you are at. Assuming you provide great service and solve a problem, you should be paid accordingly for that.

Understand your worth but don't be entitled.