Ms. Fix-It

When a customer tells me they are "shopping around" I put on the brakes and walk away. I don't try to compete with the lowballers, and it is not a good use of my time to try to educate people. My company's reputation speaks for itself, and people know what kind of quality they are getting if they hire me because we work on 95% referrals. It's been my experience that if they are trying to play the price game, then we are going to have problems in other areas as well, and I don't need the headaches. I've been on both sides of it, and I know what follows with that type of customers...

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those who cannot hear the music believe the dancers mad...

maxmechgroup

Hello
I read all the articles,thanks for the information.

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maxmechgroup
Construction Equipment

cortez

Unfortunately this may not be the full explanation. During the last 19 years there has been an influx of highly experienced tradesmen ("hybrid" tradesmen who have training in multiple trades especially from the former Soviet Block).

Remember there were no unions in this period and thus workers were trained to do EVERYTHING!!! They are now doing complete remodeling and everything-in-between for about 6 to 10 dollars an hour cost to the contractor!!

They are also not shy about working 18 hour days (no overtime, mind you) and many have told me that they hardly had meat to eat in the communist block but now have meat at every meal!! so they are highly motivated.

How does one compete against these low ballers???

This is a greed question that will be left up to the new generation to let these workers know what their labor is really worth and the benefits they should be receiving.

For now, the so called "contractors" reap the ill gotten gains (as these reduced wages and no paid benefits are not passed along to the customer. Here in Illinois (which is a "right to work state") this is perfectly legal.

There has also been an influx of Hong Kong tradesmen who are also "hybrid" tradesmen who like their Russian counterparts are happy--even-ecstatic, to get 6 to 10 dollars an hour for their ability to do just about any trade work.

Many of these workers are in fact indentured servants paying off their debts for becoming citizens to their "sponsors".

Yes, even in the post 911 world citizenship is a commodity that can be bought like any expensive suit.

Nothing has really changed except for the extraordinary profit making under the banner of national security by the well connected.

Business goes on as usual.

CaseyJones

The key to "selling" is to show your value at eliminating the clients "pain". If you cannot bring value to the deal and solve their problem then why should the client buy from you?
What can you offer? Reliability, reputation, speed, honesty, safety, quality?

Stock

We can do a cheap job
we can do a fast job
We can do a Quality job


We can't do a good cheap fast Quality job....


You decide which you want


Stock

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Common sense is not common practice

john elliott

I choose cheap, quality job. Can you do that?

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Ed the Roofer said "John too, in his crass and blunt demeanor.............."

limpbizkit

Good Article, thanks for the information.

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Leaflet Distribution
All Trades and Services

ccarlisle

Stock: you're missing the punch line to what you said about that quality/speed/price thing...

SawGearGuy

Casey, you make a really important point.

People buy emotionally, they only make decisions intellectually. Translation : Get your customer to connect with you emotionally, share their pain and worries, and you can sell the job.

Bad mouthing your competition makes your customer feel stupid. They happened to think your competition had a good value. If you make a customer feel uncomfortable, they want to get rid of that discomfort. Bye bye bid.

Lighting Retro

Never give price until you show value. If you aren't good at showing value, you won't be able to justify your price.

Also, if you win every bid, you're too low.

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Lighting Retrofit Company | Fort Worth Electrician | Generator Installation | Lighting Retrofit

markiedavis

First thing you want to do is befriend the prospect. Make them feel that the only thing they can trust is you.

For instance......When you are asked for a bid ask the prospect if you can walk him/her through the actual job. Things you know will cos-`t alot honestly let the prospect know. You are well on your way to the new contract.


Most people who submit bids know that an autocad as-built is necessary. to help the prospect in this area give him a copy for use as long as you are on the job. This will lead the prospect to trust you because people don't give away AutoCAD.

Even if you don't know how to use it it comes with help files.


or if you need as builts done you can call me if you have the DWG file which is an AutiCAD file.

I am in Philly 215-730-8933

Every owner likes to know it has someone whom they can trust.

TRUST, TRUST, TRUST....................This is a big issue, it has worked for me and I wouldn't tell you this if it didn't work.
Its real and it works out for both contractor and owner

I know you are probably saying right now ( to hell with that) but you can vist A

custrel

I think when price is THE most important thing to a customer, there is no possible way to compete with these competitors.

So what value do you bring that these competitors don't?

1) Are you and your guys clean cut, professional looking w/ clean work clothes etc?

2) Do you and your guys speak fluent English?

3) Do you have a lot of good references?

4) Can you show examples of your quality of work?

5) Do you have guarantees for your work?

6) How much higher is your price (percentage wise)?

7) Can you make a connection with the customer? Do you demonstrate confidence and competence? Do you come across as sincere?

I try to take advantage of the few things that differentiate me from my competitors and the answers to the first five questions are all yes for my company.

My experience is that people feel more comfortable with other people they have something in common with - and the language barrier can be a big one. The fact that I and all my guys are locals who grew up here can be an asset with potential customers. It all enables us to find common ground and make a connection.

Looking professional, acting professional, being gregarious, respectful, clean, and articulate really are worth a few bucks more to some clients. They feel more comfortable working with you and your crew.

I've actually had people express their relief that my guys spoke English without an accent.

Personal referrals are almost freebies despite the difference in cost between you and a competitor. If someone has seen the work you've done elsewhere, and knows the previous customer, then you've got some degree of trust built already: your work is good, their friend is happy, etc.

Other than that, I think punctuality, responsiveness, an actual willingness to work with the customer to ensure they get what they want (not necessarily what you want to sell them) are also factors in your favor.

I've been granted bids because I was the most responsive - first to return calls & emails, first to schedule an estimate - rather than the lowest bid.

Look for the ways you can differentiate yourself from the lowball, immigrants, because you can't compete on price.

MOTB

This is a great summary of everyone's opinions. Someone has to first want to do business with you before you tell the price. Even if you come down in price, the customer will feel they are getting more for less. And you obviously do not always want to win every bid, especially if you are not going to make a profit for your time. All the best, Brian

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Helping contractors find work, manage jobs, communicate with others and get paid quicker using software over the Internet

john elliott

One thought that I would offer for further discussion is this- that most people who have any sense at all are well aware that price and value are not the same thing. They understand that producats and services which are better than their competition are usually more expensive.

The problem, therefore, is not to show them that you are offering a better product/service, they may already know that, the problem is to show then that they need the better service that you are offering.

For instance, if they need a new roof it isn't enough to show them that your roof is a better roof, what you need to do is to show them why they need a better roof, and only then that you are the best person to provide it.

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Ed the Roofer said "John too, in his crass and blunt demeanor.............."

john elliott

And the relevance to this tread is..........?

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Ed the Roofer said "John too, in his crass and blunt demeanor.............."

custrel

I don't understand this type of thinking. It makes no sense to me. When someone is preparing to spend thousands of dollars on any product or service, it is foolish and short sighted NOT to shop around.

If someone feels that it is some sort of burden to explain why his product/service is better than someone else's they probably shouldn't be selling anything.

The 'best deal' isn't just about price, it's about trustworthiness, quality, reliability, experience, and customer satisfaction. How can someone possibly find the most suitable contractor for his/her needs without shopping around?

john elliott

Very well said!

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Ed the Roofer said "John too, in his crass and blunt demeanor.............."

Mike Finley

Shopping around - also known as price shopping, shopping for the best price... etc...

What do :

Trustworthiness
Quality
Reliabilty
Experience
Customer Satisfaction

have to do with shopping - ie shopping around for price?

Everyone of those factors can be researched about a contractor without and estimate ever given, no costs attached to them, no prices even talked about!

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bathroom remodeling - Denver, Lakewood, Littleton, Arvada, Westminster, Centennial, Highlands Ranch, Lone Tree, Englewood Colorado.

Control your own destiny or someone else will!

john elliott

But shopping around isn't just about price, it's about all the other aspects that customers consider before making a purchase. I, and I would expect most others, would indeed 'shop around' before making a major purchase.

Let's consider buying a car. People go to different showrooms and look at different makes of car. If everyone was just looking for the cheapest car then they would all be driving the same brand. But they are not. Which proves that 'shopping around' isn't just about price, it's about comparing all the aspects of the different offerings.

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Ed the Roofer said "John too, in his crass and blunt demeanor.............."

Mike Finley

Looking at different dealerships that offer different brands is much different then going from one Ford dealership to another Ford dealership trying to get the best price on a specific vehicle you have decided on.

The latter is shopping around to me. The former is an investigation of value.

If we transfer that process to our industry it works out that shopping for price is the latter example and the former example is investigating
Trustworthiness
Quality
Reliability
Experience
Customer Satisfaction

The latter one involves pricing, the former does not.

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bathroom remodeling - Denver, Lakewood, Littleton, Arvada, Westminster, Centennial, Highlands Ranch, Lone Tree, Englewood Colorado.

Control your own destiny or someone else will!