Successful Salesman

woodmagman

What to do…a competitor that I know very well has called to ask a favour. He has the essence of success around him and I do not question his ability to sell. He leaves nothing on the table when the contract is signed.
I have no interest to discuss with him the fact that the contract that he has had with the customer for 6 months is beyond being low.
I am looking for a tactful way to show the errors of the original agreement and increase the cost by 150%.
Providing the customer is qualified, it is my intention to be a true competitor and sign these nice unsuspecting people to a new contract. Now how do I do this without gutting a fellow contractor who I share lunch with form time to time.

concretemasonry

Truthful & hardworking -

You make more money working with a competitor than you do by trying to steal a job he already has under contract. The more profit he makes, the less pressure for him to low-ball every job since he cannot do everything.

I do not understand what "beyond low" really means.

It sound like you are trying to get him to raise his price so you can steal a job even though you do not want to talk about a job.

What he bid is his problem or gain (depending on the end result).

Have a friendly lunch with him and then go about getting some other new work. He invited you so listen and make sure he buys since it was his idea.

__________________
Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

woodmagman

His favour request was for me to take the job. No mention of his under bidding. He contacted the customer and gave them my name. They called me within minutes of me telling him I would look at the job. I now have his contract in my hand, given to me by him. I have not seen job yet but in reading the contract and doing a drive by, I know it is a waste of paper.

DamionR

Sounds like he's dumping his problems on you.

Might be smart to be upfront with the customer - explain the situation... so you can prepare them for a big increase in the pricetag.

__________________

- Free Contractor Marketing Tips & Performance-Based Lead Generation Services.

PressurePros

Those two statements, in my book of sales, are diametrically opposed. If he is inded a good salesman that leaves nothing on the table, how can he be grossly underpricing work?

__________________
Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

woodmagman

I won't have and issue with the contractor once the customer has been dealt with.
My questions is dealing with a this situation so the customer maintains confindence in the industry.
Yes obviously the customer needs to be let down easy, if a sale is to be made. Most salesmen have been were someone has low balled a customer, and you show the errors of the low ballers ways to the customer and close. I believe this situation to be somewhat unique.

kevjob

just let them know that your quote may be different because of different companies, inflation, gas prices etc...

__________________
Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

vinylguy

do you need a job that bad? just tell him your to busy sorry and move on! sound again like he is trying to unload a mess into your hands.

MattCoops

so if you don't want the job, pass
if you want the job, make an offer

if you want to up-sell
then show the customer the added benefits in working with you
so they're not having to "think about" the higher price
Build value into your presentation to close the deal.

If the guys giving you a job, you might want to take it.
I don't think there'll be any hard feelings.
The discussions at lunch may start to shift to how did you up-sell like that rather than should I have turkey or ham.

__________________
Matt with Cupan Custom Tile & Paint of Lowell, Massachusetts
Design and installation of ceramic tile and natural stone for floor, wall, and countertops
(978) 601-8774 | cupantile@gmail.com | view tile pictures and more

Doc2626

I once had a similar situation, where I was asked if I'd bid a job, but my "buddy" was very upfront about having underbid it. In fact, he admitted he had quoted it sight unseen, from what the customer told him on the phone!

I went out and looked at it, and saw that he had left about $4K on the table, and told him so. I just said I'd quote it, but not to lose money, and that he'd better be prepared to get a call from the client company.
He asked me to stall until his bid expired, and I refused to do that.

I got the job, and lost a buddy, but the customer got some low-cost extras thrown in, to make them feel good about the price.
Buddies like that, I can do without.

dirt diggler

buddies aside .... why is this even lunch-worthy talk???

woodmagman

We are in the renovation business not nuclear physics. A job like this is three months worth of work for a couple of guys and three different trades. 100K plus, not looking at it was not an option, the task is done. The door has been left open for the customer to come back to me. I did not lose as much sleep over it, as the soon to be mother is going to tonight.
Word to the wise, man up and do your own dirty work and seven months to cancel a job is to long, seven days should be enough time. The only good thing that will come of this is we have made two new friends.

boman47k

Agreed. Confused me as well.

He wanted you to do a job for $4,000 less than it was worth? Maybe the question is why. customer pita, slow to pay...?

woodmagman

Turns out everyone makes mistakes even smart, good people. Customer on the other hand is livid! Waiting that much time to find out nothing is going to happen for the price expected.......wow. Solution-- check you numbers, then check your specifications, then check your numbers agian.