I’ll get you more work!

I don’t often focus on the residential sector, but I’m no stranger to it. As a 4th generation painter, my family started out in residential work before transitioning to the commercial side of the industry.

In residential projects, it’s common for customers to promise additional work or referrals if you lower your price. They might say they have more jobs lined up and will call you back or that they’ll spread the word about your company. While this rarely pans out, it’s important not to see this as a scam. Most customers genuinely mean well in the moment, they just don’t always follow through.

Why We Never Drop Prices Based on Promises

1. Promises Are Often Empty: Customers may promise more work or referrals to secure a discount, but these promises rarely materialize. This creates a lose-lose situation where you’ve sacrificed profit without receiving the additional work you were promised.
2. Finite Funds to Allocate: Every job only has so much money to go around, materials, labor, and your markup. Materials and labor are fixed costs, so the only place a discount can come from is your markup.
3. Markup is Your Profit: Markup isn’t a luxury, it’s your profit margin. It’s what keeps your business running and pays for your overhead, staff, equipment, and, ultimately, your livelihood. If you cut too much into profit, you’re not just trimming fat, you’re cutting into the essentials, like paying bills and staying in business.
4. Setting a Dangerous Precedent: Once you offer a discount, it sets the expectation for future negotiations and devalues your work. Other customers may expect similar discounts, eroding your ability to run a sustainable operation.

Bottom Line: Dropping your price today for a promise risks your business tomorrow. Your profit isn’t just about money, it’s about staying in business, paying bills, and protecting the value of your work.