Cheap, Fair, Good, Fine, & Outstanding

[score0matic]

I posted this on a contractor forum   I would like to see what you all think of it.

How I rate Quality, Value and Craftsmanship.

Like the old rub:  I know you think you understand what you heard, but you have failed to realize that what I said is not what I meant.

some of my definitions may be a bit out of focus  this is because they are my "walking around",  understanding of the concept rather than taken from a dictionary.

As it comes to contracting here is how I define terms

Quality: is consistently meeting specification.   Thus  Mc Donnalds makes a "quality" product whether you think their burgers are awesome or total  has nothing to do with the "quality of the product.   "quality is quantifiable"

Value:  A subjective ratio of price vs features and benefits

Features and benefits:  Features can be specified.   Benefits are about the weight a buyer attaches to a feature.  (If a buyer wants to have warm tootsies when she walks on her tile floor she will weigh the Benefits of having an in-floor system with a +15 F  Cap (feature).)

Craftsmanship: A feature comprised of attention to detail and the employment of technique that makes a finished example more esteemed by those who understand the processes enough to have an expert opinion

(Note: Craftsmanship is often confused for "initial fit and finish".  Initial fit and finish is often confused for quality.  Take the kitchen cabinet industry, where box store displays look in "initial" fit and finish to be greater than those made by skilled craftsmen.  That certainly doesn't mean their product is better.  only that one of their specifications is a fine Initial fit and finish, this is because the seller knows that the illusion only need last until the purchase decision is made.

Now I have Five levels of Expectation that I share with clients to find out what they want.  These levels are Tied to Pricing tiers and help keep clients from expecting more than they pay (screwing me) for and from buying more than they need (screwing them).

Cheap:  Hack work requested by Hack owners who want you to polish a turd for free.

Fair:  Price and function are the Key Features of this level.  These are often rental units where  Economy is the metric for quality....  You can effective up sell by showing benefits of less maintenance or a higher rental rate by shifting to an upgraded item.

Good:  This is the level of price vs features that most folk live at.  These comprise much Bread and Butter work.  If you want to upsell here you need to spend time listening to your client to find out what benefits they really want and then showing them features that will meet their desires.
(most folks are content with Good)

Fine:  Money is spent on both the selection of material and "craftsmanship" for the sole purpose of differentiating it from the Good.
You shouldn't get a whole lot of "upsale" [poke] here.

Outstanding:  The top 2 or 3 of every 1000 fine projects,  these are the masterpieces.  The problem with an Outstanding project is failure to realize the dream.

Fair, Good and Fine work,  can all make money (that is our Stated Business plan right) and all can be accomplished in a "quality" manner.   also you can totally screw your self and your client by failing to assess their Expectations.

Craig

 

[tbellemare]

I like the way you look at it, Craig.

I think a successful service business is all about slightly underselling the service and slightly over-delivering. As you pointed out (and Kreg), you have two ears and one mouth and should use them proportionately to get the most from a (potential) client.

Tom

 

[johnsonri]

How I rate Quality, Value and Craftsmanship...

Now, there's a man who surely has satisfied customers. I just betcha!!!

Rey

 

[score0matic]

Tom and Rey

Thank you for your kind words.  I try to please [smile]

Craig

 

[Gaucho Woodworking]

Craig;

You are absolutely right pointing out the difference between Feature and Benefit. Most people don't understand this concept. The only way to find what "matters" is to ask open ended questions, find where the pain is and then dig deeper to find WHY. At this point you come to the salesperson Shangri-La which is "the need behind the need". Once you know this, you can present features that are relevant to precise and accurate needs. Once you confirm all of this, you have benefits.

It takes a lot of patience to get there. Frankly, in my case with ADD I have to take a pen and paper and keep asking "why". Write possible answers in a piece of paper, keep asking and after all of this you can do a professional selling job and get more money for your project.

Your comment was impressive. I just can't present this as well as you did. Thank you.

Bobby Slack

 

[woodshopdemos]

Craig,
  I enjoyed your presentation -- makes a lot of sense. BUT, as a tradesperson, can you offer other than a simgle quality level? I remember the old Montgomery Wards having good, better best in their tool descriptions. There, I can see the difference. But from a person building a bookcase wall (as an example) can you say for good it will cost $2400 and for better it will be $4200 and for fine it will be $10,000. Just funny numbers for example purposes.

 

[jvsteenb]

That is certainly possible, it's just not for everyone. Though it would probably be less about mechanical quality, and more about "percieved quality". There are still people out there that have a sound appreciation for artisan type work. A bookcase with shelves on a "system 32" base will definitely serve it's purpose, but a system with the boards on traditional notched stiles with loose supports ( don't know how to put this in english - sorry ) will appeal to those who value craftsmanship. A nice veneered backboard serves the purpose perfectly, but there will always be those that appreciate the traditional T&G for that purpose, just for the amount of decent effort that goes into it. And those are only two examples.
If you love to do this kind of traditional work, and your customer can relate to that, it's certainly possible to agree on a piece that may not be "better" from a purely mechanical perspective, but actually a lot nicer - and thus more expensive.

Regards,

Job

 

[Brice Burrell]

Craig,
  I enjoyed your presentation -- makes a lot of sense. BUT, as a tradesperson, can you offer other than a simgle quality level? I remember the old Montgomery Wards having good, better best in their tool descriptions. There, I can see the difference. But from a person building a bookcase wall (as an example) can you say for good it will cost $2400 and for better it will be $4200 and for fine it will be $10,000. Just funny numbers for example purposes.

John, from my experience I'd say no. While some people might like the idea of options for better quality, I'd fear someone not appreciating the difference and think I'm trying to rip them off. I've found it much safer to try to figure out what they want and what they're willing to pay before I make my offer. As Bobby said it takes work to understand the real needs and wants behind any project. Doing good work alone isn't enough when it comes to providing true value and satisfaction. Selling the client what they really want (and they rarely know what that is going in) is a true art in contracting. 

 

[AlexThePalex]

BUT, as a tradesperson, can you offer other than a simgle quality level?

It's all too easy to offer different quality levels. You can make a bookshelf out of pine or you can make it out of oak or you can make it out of ebony. The material comes with a different price tag though the amount of work on it stays about the same. The same goes with paint for instance. I can paint with paint that costs 5 euro per liter, and I'll have to do it again next year. I can also paint with paint that costs 40 euro per liter and It'll stick for 5 years. I can even paint with paint that costs 65 euro per liter and it will stick for 10 years.

And that not only applies to materials but to the work itself too. If you need to make a shelf in a warehouse to put bags of potatoes on, you're not going to put the amount of effort and detail in it that you would for a shelf inside a wealthy man's living room.

 

[harry_]

I learned this as: Good (quality), Fast, or Cheap,......... pick two

 

[score0matic]

thanks for the renewed interest I thot this thread died at 3 posts.

Craig,
  I enjoyed your presentation -- makes a lot of sense. BUT, as a tradesperson, can you offer other than a simgle quality level? I remember the old Montgomery Wards having good, better best in their tool descriptions. There, I can see the difference. But from a person building a bookcase wall (as an example) can you say for good it will cost $2400 and for better it will be $4200 and for fine it will be $10,000. Just funny numbers for example purposes.

Actually I have been able to pull it off with "Limited Success"  with tile.    The Key is to Start  with Fine as the bench mark and move down.  Something Along these lines.  I can set that Shower for less money and here is how.  First remove benches and any inset shelves,  Set the ceiling on Diagional so we do not have to calculate gorut lines in the layout.  Drop the requirement for dead plumb walls (explaining that the tile may now Grow and that will save $100)  move it it a standard size and install a premade base.  all the way down to Dens and 12 x 12 set on brick pattern no bull nose.  This is when the owner has to make a  Cost Benefit analysis. 

I've found it much safer to try to figure out what they want and what they're willing to pay before I make my offer. As Bobby said it takes work to understand the real needs and wants behind any project. Doing good work alone isn't enough when it comes to providing true value and satisfaction. Selling the client what they really want (and they rarely know what that is going in) is a true art in contracting. 

Now Brice is saying doing this before he gives his bid and he is also "specifying" his project to the client (as we all should).  Where this "system" becomes useful is when a client tries to get you to "come down a little"  now your answer is shure and here is how we can and this is what you will give up. (try to make sure that your costs are close here as you want to change price for speed  Like Harry's ole line )  With remodeling it is easyer and almost natural to sell based on the client.  If they have a "fine" home sell them a "fine" project.  I do some fairly high end showers and bathrooms and often these same clients also own rentals, (I know they have guys working on them and i want that business as it can actually pay better).  let them know that you can Preform a Fair job for a rental and that the difference is "as stated above"  maybe they have a Small commercial fit out that they haven't even thought of you as being able to do as you are "high end"  If you have the ability to do it,  let yourself be all things to your clients.

This was First, a philosohpical excersize for me to think about how i can meet my clients expectations with out placing my self in a set mold.

Craig

Ps  when i say i share these Five levels of expctations with my clients that means i work them into my sales pitch so they know how they want to classify this job.  I have had several additional basement baths added like this.  "It won't be as fancy as the upstairs  but  lets look at the basement bath as well "