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So, I worked at a startup that specifically tried to work on this issue. It ended up failing. You know why? People were cheap. They didn’t care at all about th
by bradlys 5y ago
So, I worked at a startup that specifically tried to work on this issue.
It ended up failing. You know why? People were cheap. They didn’t care at all about the quality of service until after the job was done and they paid bottom dollar.
People are incredibly price sensitive. If there’s a service that is 1% cheaper, they’ll go with that even if it causes 10x as many headaches. The reason? Money is obvious but luck isn’t.
It’s only when you get into business scale of stuff that do people care about quality. For most people - they’re shopping once a year for some handyman service. In those cases, they’ll do whatever they can to get the lowest promised rate upfront. This means they’ll go with untested folks as long as they’re cheap.
Truly, I think there is a way to have both cheap and good but it’s just not in the best interests of a capitalist. If you’re good, you raise your prices as high as possible. You don’t need to compete with shitty - you’re inherently better and thus feel you can charge more. Your clients will feel the same. But I think your clients aren’t likely typical homeowners in those cases. Maybe it’s commercial.
- thijsvandien 5y agoI surely can't be the only one who isn't price sensitive at all. 3x market rate? If that means it gets done well, happily.