How to Beat a Lower-Priced Competitor - Page 3 - Contractor Talk - Professional Construction and Remodeling Forum

firehouse tree · 10-07-2008, 05:44 PM

Thank you for all your input this has helped tremendously.It all makes sense to me and 95% of our work is by word of mouth and references.Thank you guys.

SethHoldren · 10-07-2008, 06:21 PM

Quote:

Originally Posted by firehouse tree

Thank you for all your input this has helped tremendously.It all makes sense to me and 95% of our work is by word of mouth and references.Thank you guys.

Good for you!

Magnettica · 12-08-2008, 07:03 PM

Great article, and it'll come in handy when I venture out into business for myself, hopefully in 2009.

montellabm · 12-11-2008, 11:34 AM

Value added support. In times like these if you support the product that you sell, whether it be equipment or services. You need to stress the important of the support you can give your customer. If they know that you can be there for them after the sale or job is done in regards to issues they may have, you have a better chance of getting their commitment. Thats how I roll anyway.

WarnerConstInc. · 12-17-2008, 09:20 AM

I usually beat them with a old chunk of rubber hose.

Konkuror · 12-17-2008, 01:25 PM

Quote:

Originally Posted by WarnerConstInc.

I usually beat them with a old chunk of rubber hose.

Fill the hose up with sand, it works better, lol

indyonline · 12-22-2008, 02:32 PM

Excellent. I hate when that happens. People that will work for dirt and end up being hacks.

bighammer · 12-23-2008, 04:34 PM

if the lowest price always got the job, we would all be driving geo-metros and eating romin-noodles....

Wdavis3910 · 12-24-2008, 08:34 AM

Price is defined by our clients project. I found with my client personal homes & business they want top quality products & service, while rental properties they want best price "cheapest price".

Mr. Mike · 01-13-2009, 10:20 AM

I'm pretty lazy but think I may go look at the article now they are talking about. I wish someone would of pasted something from it while they were there.

BuilderOne · 01-15-2009, 09:50 PM

Quote:

Originally Posted by Mike Finley

That's a good article on the subject with good content, which in a nutshell is build value in the eye of your prospect.

Over the years in all sales I have been in, the #1 thing I have found to beat lowballers is to market and advertise your services to the correct audience and avoid in the first place and as much as possible getting infront of leads that HAVE to be be convinced about your value.

As far as I'm concerned yes, there are some customers who will be swayed, they are a small percentage of the success rate. The vast majority of customers who need this low ballers speech are not going to be swayed, because of internal issues that brought them to this point in history. They can't afford your services, they don't care about quality, and the #1 reason is they whole heartedly believe that there is no difference in the outcome of a project no matter who they choose. When you stand in front of them going over all this value building they glaze over in about 20 seconds.

This sales approach to me is the same as going out and standing on a street corner and giving your sales speech to 100 complete strangers who are walking by with no interests at all about your product. You will end up selling 1 of them.

The opposite is standing in a show room for a company that has a reputation in the community and advertises, and waiting on 100 customers who walk in the door with the intentions of buying your product or a similar one. How many of those leads will you close?

What's forgotten in all this talk about building your value is the majority of contractors standing in front of their leads are standing in front of leads of the quality of the first example of standing on a street corner. Giving that value speech to that group returns very low success rates. Giving that speech to the 2nd group is hardly even required, since if you've done your marketing and advertising right, have established a brand in your community, the people standing in front of you are already there for totally different reasons.

So yes, the article is good information, but if you want a much higher success rate and want to stop having to give the low ballers speech all the time, get in front of customers who don't need that speech. That's the secret to being successful in this or any business.

WOW, old post but worth re- reading. Very nice job!

slowforthecones · 02-16-2009, 02:37 AM

my dad always says you get what you pay for...low price means there's usually something missing! Most likely will cut corners and do a hack job or using ex-felons/criminals/illegals inside your house to perform the work. If you have a upscale house....you don't want that kind of **** around. I always explain to a customer that my guys are solid 100% in the work they do compared with the home depot parking lot help others hire.

simplejack · 02-17-2009, 04:26 AM

Yeah, I think the article was nicely written, Me I don't bother with Lowering prices, I give the best price based on a lot of work and hope the customer can appreciate what makes me special and worth the extra dough...

After all...I am an Arteest!

BuilderOne · 02-20-2009, 09:59 PM

Quote:

Originally Posted by simplejack

Attachment 15348
HUH!? ...oh sorry I was distracted!

Yeah, I think the article was nicely written, Me I don't bother with Lowering prices, I give the best price based on a lot of work and hope the customer can appreciate what makes me special and worth the extra dough...

After all...I am an Arteest!

IF YOU COMPETE ON PRICE< YOU WILL LOSE> SOMEONE ELSE IS ALWAYS WILLING TO GO OUT OF BUSINESS SOONER THAN YOU

THINKPAINTING · 02-22-2009, 08:41 AM

Unfortunetly there are many good contractors out there right now willing to work for less allot less............getting worse by the day.

This season for exterior work will be a challange, to say the least.

Burke's/trim · 02-23-2009, 08:20 AM

Quote:

Originally Posted by montellabm

Value added support. In times like these if you support the product that you sell, whether it be equipment or services. You need to stress the important of the support you can give your customer. If they know that you can be there for them after the sale or job is done in regards to issues they may have, you have a better chance of getting their commitment. Thats how I roll anyway.

I agree...thats my approch as well..

simplejack · 02-23-2009, 04:40 PM

If you give the best price based on actual numbers everytime, you tend to stick to your prices... if you start adding fat to your bid then you might feel like you can give a discount, I don't add any fat to my bids...I sleep well at night, and i work hard for my clients.

let some one else haggle, I can sit at home and go broke...

Burkk · 03-03-2009, 02:41 PM

Must read!

mercy builder · 04-01-2009, 02:59 AM

Great article. The market place is filling with part time, under experienced and under skilled "tradesmen" hoping for quick cash in an uncertain economy. This is normal for these shaky dollar earning days and though I dislike low ballers muddying the waters, truth is - this is a great time of opportunity to build confidence and trust with a prospective client.

I have found calmly offering a proven and well referenced history of quality work and satisfied customers stills the waters and furthers the opportunity to review a contract that protects the interest of both myself as a contractor and equally the interest of the customer. As far as most customers are concerned, yes character does matter when they hand over a set of their house keys.

Thanks Ron Roberts for keeping it clear and simple.

dokuhaku · 04-14-2009, 10:59 PM

Quote:

Originally Posted by concretemasonry

...You don't expect to do every job you quote, so why not give the bad ones away.

Brilliant. I need to get a collection of competitors business cards to hand out in these situations!