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If you’re an independent contractor and you’re trying to find work, the conversation starts with the price. Always. You’re always trying to offer the lowest price because if you charge too much, the client will go with someone cheaper.
Now, what if someone told you it didn’t have to be that way? What if you could simply walk up to a client without competing on price?
If you have a license, you can do that.
A professional license is a huge plus. For clients, it means that there’s less risk and there’s a greater chance that they’ll be happy with the job you did. Before, you were just another option.
With a license, you’re the only choice that makes sense for someone who wants to have peace of mind.
Trust Lets You Charge More
Put yourself in the client’s shoes for a moment.
They hire an independent contractor, and in doing so, they’re taking a gamble. They’re letting a total stranger walk into their home and their business. What if they don’t do a good job? What if they don’t even show up? That’ll make them hesitant, so they’ll shop around and try to find the cheapest option.
They’re already sort of braced for disappointment, so why pay more than what’s necessary for it?
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A license changes that dynamic immediately.
That’s not to say that a license is a guarantee for a job well done, but when a client sees you’re licensed, you’ve already checked a bunch of their boxes.
Think about it; here’s a quick example:
Let’s say you’re in a state where you’ve got really cold winters – Minnesota. And you’re there doing electrical work. If the clients see you’ve got a license, if they know you’re keeping up with the Minnesota electrical continuing ed course , they figure you’ve learned everything there is to know when it comes to dealing with the current regulations and specifics of the weather in Minnesota.
The same knowledge won’t do you much good if you’re in another state, say Arizona, where you’ve got completely different weather conditions, meaning the way you do your work is different.
The clients wouldn’t necessarily know the difference, but the worker does.
A license says you’ve met a certain standard, and you already have a level of authority.
Plus, clients know you’ve got more to lose when you’re licensed.
Licensed professionals work within a system that holds them to a standard, so if something goes wrong, the client has somewhere to turn. This gives them a sense of security, which is very powerful.
This is good for you, as well, because it saves you from having to prove anything when the client starts questioning your methods and rates.
Your biggest benefit, though, is what your bank account will show . Trust isn’t just warm and fuzzy; it translates directly into what you can charge for your service. If a client feels safe with you, then money is no longer the main issue. They won’t negotiate as hard because they’ll be willing to pay more just to avoid the headache of wondering if the person they hired will do their job properly.
You could say that you’re the solution to their anxiety, and you can charge for that.
How Licensing Makes Your Entire Business Stronger
Now you know you can charge more based on trust, but what else does trust do?
Let’s see.
You Compete on Value, Not Price
Lead with your license, and the conversation will change in an instant.
You don’t have to defend your rates; instead, you focus on what you can do and how your approach protects the client. Now, your expertise is the center of your sales pitch, and the client is aware of the fact that specialists don’t discount.
Because they don’t have to.
You Attract More Serious Clients
A professional license is probably the best way to filter the crowd.
Bargain hunters and people who treat your work like anyone else can do it tend to look the other way the minute they realize you have credentials. And that’s a good thing because the clients who stick around are the ones who value your skills.
They’re the ones who understand that cheap work is problematic in the long run, so they’re not going into it looking for a deal.
You Negotiate from a Position of Authority
If you have proof, you know what you’re doing, you negotiate from a totally different position.
There’s no awkwardness when the conversation gets to rates because you’re not making anything up. You have a reason for what the numbers are, and that changes the tone. And even if the client isn’t too happy with the price, they’ll see the credentials and soften up on it.
They might still ask about the price, but they won’t grill you like they would otherwise.
Conclusion
So, what did we learn here? Is being forced to have a licence just a way the government takes more money out of the pockets of honest, hard-working contractors?
Well, no. Not really.
Sure, yeah, you learn, you take (and pass a test), you pay the fee, then you have to renew it, and well, that’s not really exciting.
But what having a valid licence does is instill ‘trust’ into clients.
The client knows they’re getting value from their hard-earned money. What having a licence basically does is make clients trust you before you even open your mouth. And that’s the most important part. By clients trusting you – and provided you do end up doing a great job – you’ll get recommended. This way, your client base pretty much grows on its own. And as a contractor – that’s exactly what you want.
So, is having a licence an annoying formality or a business strategy? Depends on your perspective.
One more thing...
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