Do you sell labor or results?

Discussion in 'Business Operations' started by GreenUtah, Sep 9, 2005.

  1. GreenUtah

    GreenUtah LawnSite Senior Member
    from SLC, UT
    Posts: 866

    Are you selling labor or results? If you spend your time selling labor, then you invite rate shopping for lower labor costs. If you sell results, you are selling your knowledge and experience along with the labor to get the job done. How would you select your attorney or accountant? They are service businesses as well. H&R Block is a good example of how a company has adjusted from selling labor to results. As software programs became more and more sophisticated, people began preparing all their taxes with programs like Quicken and Money, taking a huge chunk of traditional tax prep from Block. After a few years of losing market share and hearing of their imminent demise, they shifted their marketing approach, asserting their expertise and pitching the better results(bigger returns) that they have to offer with their experience and personnel resources. Add to that the expansion into(what some may think of as predatory) lending practices(loans against refunds) and the company no longer has the death knell sounding for it.
    The point is, even a huge company can make the changes needed to survive a hard push at them from a cheaper labor source, not by becoming cheaper, but by selling results and creating a value to their expertise, rather than just purely their labor. What are YOU selling?
     

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