Why I Believe in Pricing landscape lighting systems based on Value

23 Dec Why I Believe in Pricing landscape lighting systems based on Value

By Mike Gambino

This article will discuss the pricing criteria for new landscape lighting work not maintenance or repair work which typically is priced by the amount of time the labor takes to complete and the cost for required parts.

For landscape lighters, the question of how to price our services is always up for debate. Should we charge by the hour or per project? What should our hourly rate be? What type of payment terms should be required? The answers to these questions will vary based on the market condition, reputation, and personal preferences and goals for our businesses. But there is one thing that I believe should factor into every pricing decision made:

Pricing services based on value.

More specifically, basing prices on how valuable the services are to the client. Not necessarily how easy or difficult it is to perform those services. Sure, time and overall project scope will likely play a role in how to determine a price quote, but before sending off that proposal, I take a step back and assess the value from the client’s perspective. How much is the project worth to the client?

Pricing Work Based on Time

As we’ve progressed in my landscape lighting career, we’ve inevitably become better and better at what we do. This usually means we get faster and more productive. For me, I can design and install a landscape lighting system in half the time it took me to do so years ago. My skills have become sharpened over time. I’m more experienced using my tools so I know how to get the most out of them.

Does the fact that I work much faster now mean that I should charge less for what I do? No. If anything, I should be charging more (I’m able to meet tighter deadlines than I was before).

Pricing Work Based on Difficulty

How many times has a client asked you, “How hard is that?” As a landscape lighter, I get asked this question sometimes.  Clients don’t know how to design and build landscape lighting systems. They don’t know about the complications involved in various situations and whatnot. So they ask me how difficult it is for me to deliver what they need.

I think many professionals would agree that most of what we do comes natural to us. That’s why we’re good at what we do. We might not call our work “easy” because it may be very complex, but I wouldn’t necessarily call it “difficult”. There are challenges and we meet them. That’s the nature of landscape lighting.

Does this mean I should undercharge for my work because it comes natural to me? No. I price my work based on the value it brings to my client.

Pricing Your Work Based on Value

Sometimes we’re in the business of serving other businesses. We should always assess the value that our services bring to our client’s business.

For example, a client may want a landscape lighting system to enhance the appearance of their restaurant or night club. With the right design execution, a landscape lighting system can bring an excellent return on investment for my client.

I have designed and built quite a few landscape lighting systems. With each project, the time it takes to complete goes down while the quality goes up (as my design and technical skills improve). Since this work has become more efficient, would you undercharge for this type of project?

Of course not. We deliver quality expertise and provide value for our client’s lifestyle. That value should be met equally on both sides.

This landscape lighting blog is published by Mike Gambino of Gambino landscape lighting inc. all rights reserved. Mike is a professional landscape lighting system designer/ builder and has been designing, installing and maintaining landscape lighting systems for more than 20 years. Mike resides in the Los Angeles area with his wife and 2 sons. To visit his website go to www.gambinolighting.com . To inquire about hiring Mike please click here .

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