How To Beat Price With Value

J. Sullivan

The only way you are going to beat a competitor on price is buy providing 4000% more value. This is the reason that Mercedes is still able to sell $70,000 cars with Honda selling $10,000 cars. This is why Apple can sell $3,000 laptops compared to Dell's $500. Do you buy the best quality tools you can for the job, or is your cordless set a Black and Decker? Granted, you are always going to run into someone who is just looking to buy on price alone, but who wants to work for that guy anyway? He is going to be late paying you, he is going to drag his heels during the process, and he will probably have a punch list a hundred miles long. Leave that for your competitors, and if you are worried about loosing business, go out and grab more customers. The following happened to a contractor client I had a couple months ago. He was finding himself consistently outbid by shoddier builders, or new guys who had no idea about pricing. He knew his work was superior, and didn’t understand why he was loosing business. These are the steps we implemented for him:

• New Office Stationary Cards
• Updated Web Presence
• An Email Newsletter, with content he didn’t even have to write
• A DVD slideshow with customer testimonials, previous work, and a checklist of what to look for when hiring a customer
• A recon of the work to be done, and an airtight presentation

First of all, he had printed his business cards himself, and had a kid do his website. Now, while you can get away with it sometimes and hit gold, most of the time, you get what you paid for. I recommended that he pay a high quality designer to layout the stationary ,business cards, and website , then either use desktop publishing or that kid to do follow up work using the template.

After that was all in place, we moved on to the Newsletter. If you are going to have a website and use it to market your business, it makes a ton of sense to have a newsletter. The newsletter lets you get the names and addresses of people who are interested not just what you have to say, but also what you have to sell. This is important to note, because all you guys hunting for leads can drum up quite a bit of business from your list.

We then designed an inexpensive DVD with his previous work, customer testimonials, and a checklist of things to consider while hiring a contractor. Again, this puts you in a position to demonstrate your expertise, and I cannot stress to you how much a testimonial can put you ahead of your competition. Your best salesman is a very satisfied past customer. I highly doubt your competitors are using this weapon. Differentiate your face off boys.

So far, all of this was done before he even had a qualified lead. Once he secured a lead, he called right away . He learned everything that the job entailed, and told them he would prepare and estimate. After he hung up the phone, he drove by there house with a digital camera, and took pictures of the repairs needed and the work site. He went home, drew up and estimate of what it would cost, and foreseeable problems with the site, drew with markers where his equipment would be set up, and proposed an estimated time line. After all this was done, and only after all this was prepared, he approached the home owner's one evening and went to town.

After all the preparation he presented, and even though he wasn't the lowest, or the highest, not only did he get the job, he also got one to do a 2,000 sq ft addition. Now, some of you may be thinking well that the following is either overkill or out of your budget. Consider this. The whole shebang cost my client about $6,000. The very first contract he signed more than covered the entire expense. And now he will never need to make another DVD unless he wants to, won't need a new website, has an automatic email newsletter with content he doesn't have to write, and has to purchase business cards once a year.

The one thing that I know you guys understand is that people can be smarter, have more money, a bigger crew, better tools, better trucks, hotter girlfriends, colder beer. But at the end of the day, it doesn't matter, because the winner is going to be the guy who works harder. If you truly want to all the customers you can handle and then have a waiting list, that's the only way you are going to do it. Always be smart about your marketing, don’t just do what everyone else is doing. When you invest your marketing dollars instead of spend it, your results will blow you away. Invest in value, and you will receive lifetime riches.

- J.

__________________
I'm a web dude, and I do web stuff.

Cole

Pretty Interesting...

You will want to read our advertising rules, as your signature if breaking the rules that govern this site. Welcome to the site and stick around, it will be interesting to hear more about this.

__________________
Tulsa's Leader in Outdoor Living Construction | Facebook | Tulsa Pergola Builder | Tulsa Outdoor Kitchens

J. Sullivan

Thanks for the head's up Cole, I removed the link and appreciate the warning.

__________________
I'm a web dude, and I do web stuff.

nlgutters

Let the guy keep his link. He's here to answer half the questions that are asked each day. If he gets a little business who cares.

john elliott

I disagree, he's not a contractor and shouldn't be here at all.

John

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

Vinny

The forum is about sales and since we (contractors) are in need of such expertise I think the post is good to go John.

I look forward to more good stories like that and hopefully more usful advice

__________________
Roccies Asphalt Paving
The Right Way Driveway Company
If you say you cant, your a loser. If you say you wont, your a quiter. Which one do you want to be?

Ed the Roofer

We have had other Marketing Contractors or Business Coaches on previously and as long as they are here to provide content without spamming for services, they, and their input should be welcomed, imho.

Ed

__________________
Please Stay Tuned For A Very Important Message From Our Sponsor
http://www.rightwayroofingcompany.com/ www.rightwayroofingcompany.com
Roof Estimates, Roof Repairs, Roofers, Roof Leak Help, Elgin, Carpentersville, East Dundee, West Dundee, Sleepy Hollow, Algonquin, South Elgin, Huntley, Lake In The Hills, Illinois

Stone Mountain

I agree. He should be allowed here. By the looks of things, he might be able to help a lot of us. I really like that DVD idea.
Oh. He Is a contractor. He just doesn't build pysical constructs.

__________________
Residential Deck Specialist: Vist our Website
www.fenceanddeck.ca

Ed the Roofer

I mentioned a firm who produces video business cards and intro dvd's on here a while back.

Look up Lawrence Media Group and get some ideas.

I found out about them from an article profiling some higher tech websites for contractors in Remodeling Contractor magazine.

Ed

__________________
Please Stay Tuned For A Very Important Message From Our Sponsor
http://www.rightwayroofingcompany.com/ www.rightwayroofingcompany.com
Roof Estimates, Roof Repairs, Roofers, Roof Leak Help, Elgin, Carpentersville, East Dundee, West Dundee, Sleepy Hollow, Algonquin, South Elgin, Huntley, Lake In The Hills, Illinois

J. Sullivan

I appreciate the kind words and support guys. I look forward to passing on as much advice as I can, and hope that you can use it.

To Stone Mountain; The DVD idea is an easy and inexpensive way to completely differentiate yourself from your competitors. It can even be used in a direct mailing campaign, if produced correctly. Hell, you could even drop it in mailboxes around town to use as a warm up for cold calling.

As always, good luck, make more money!

- J.

__________________
I'm a web dude, and I do web stuff.

nlgutters

do u have a website? if so post your link

Ed the Roofer

Thats what he got warned about in the first place, unless he was a paid advertiser.

I would imagine that he could have his website listed in his profile instead of his signature when he gets enough posts though. Have to wait and see.

Ed

__________________
Please Stay Tuned For A Very Important Message From Our Sponsor
http://www.rightwayroofingcompany.com/ www.rightwayroofingcompany.com
Roof Estimates, Roof Repairs, Roofers, Roof Leak Help, Elgin, Carpentersville, East Dundee, West Dundee, Sleepy Hollow, Algonquin, South Elgin, Huntley, Lake In The Hills, Illinois

Cole

Ed,
I agree, I think a link in his profile would be ok, but not in his signature.

__________________
Tulsa's Leader in Outdoor Living Construction | Facebook | Tulsa Pergola Builder | Tulsa Outdoor Kitchens

Ed the Roofer

Hint-Hint.

Ed

__________________
Please Stay Tuned For A Very Important Message From Our Sponsor
http://www.rightwayroofingcompany.com/ www.rightwayroofingcompany.com
Roof Estimates, Roof Repairs, Roofers, Roof Leak Help, Elgin, Carpentersville, East Dundee, West Dundee, Sleepy Hollow, Algonquin, South Elgin, Huntley, Lake In The Hills, Illinois

J. Sullivan

Haha I appreciate it guys. I do have a website, and I'm not sure how many posts I'm suppose to have, I'm assuming it's as much to do a PM (20), so once I hit it I'll get right on it.

I'm working on an article about positioning, so if you're interested, keep your eyes peeled!

- J.

__________________
I'm a web dude, and I do web stuff.

Ed the Roofer

It is 1,000 and they all have to be approved as being very informative, or else you have to start all over again from Zero.

You get extra credit when they pertain to Roofing and Guttering Contractors businesses though.

Ed

__________________
Please Stay Tuned For A Very Important Message From Our Sponsor
http://www.rightwayroofingcompany.com/ www.rightwayroofingcompany.com
Roof Estimates, Roof Repairs, Roofers, Roof Leak Help, Elgin, Carpentersville, East Dundee, West Dundee, Sleepy Hollow, Algonquin, South Elgin, Huntley, Lake In The Hills, Illinois

Carport King

Great post but hey Ed do not forget the poor guys in Florida we need education to.

I am sure this guy can bring alot to the forum but just follow the rules.

I am working on some new stuff also with voice and video for our web and can't wait to show it off. Cool stuff!