Approaching The Big Boys

Milhaus

How do you go about approaching your competition? I'm completely at a loss. I think going to some home builders meetings could break the ice a bit, but being unsure about pricing and such, I'm a bit hesitant. I don't have near enough knowledge of what other contractors are charging. I've got a pretty good idea where I fall in line, but I want to know more.

mark

genecarp

please, clarify, what are you approaching them for?

dutchlegacy

Milhaus,
are you considering dropping in on your competition and comparing notes? It is always a good thing to know your competition, especially in your area, but don't expect a lot of helpful tips from them, especially in times like these. Get in touch with some guys that are bit further out of your area...guys that you might not necessarily be in direct competition with. They might be less reluctant to give advice. One thing to consider: your pricing structure will certainly be a lot different than a larger, established company. You should look at what your costs of doing business are and work from that point to establish what YOU need to charge to make YOUR desired profit. Every business is different.

ultimatetouch

you could always have him come to your house to give you a bid on somthing if your house is not already remodeled. You could also have him go to your mother in laws house or your mothers house and have him give you an estimate on the particular job you want more info on. While the sales guy is there you could even ask how do people hear about you? He may reveal some advertising he does. He could tell you how they sell people, what the estimates look like, etc.

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Ultimatetouch
Illinois Remodeling Company, Kitchen Remodeling Chicago, Room Additions Illinois

wizendwizard

Run an ad on something like bid clerk. A single ad could tell you who your competition is and how long it takes them to contact you. If you actually have them come out to bid something you are already contracted to do, it will give you their pricing.You can also meet some very good sub's this way.

With bidclerk it's not costing them anything but a phone call or email. Bidclerk doesn't charge to buy an individual lead so it might make it really easy for them to talk to you.

LOL don't take this seriously....I'm being a wiseazz again.

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Milhaus

Yeah, that post was a little bland. I want to find out where I fall in terms of pricing with the competition. I was referring to talking with the competition to 1) meet them, and 2) find out what I can about their pricing. I've heard a lot of guys on here say you just need to approach them and see how it goes. I haven't had much luck with the few I have tried to talk with about this. It's all part of the game so I don't really take much of the conversation to heart, but I would still like to know more about the area and what others are charging.

I ask subs every chance I get, I was curious if there are other ways that have worked.

mark

playsinmud

Honesty is the key. If you want to get information from these guys you have to give it first. Everyone is always on edge but if you're upfront and honest it will gain their respect and regardless if you are competition they will see that you have integrity. But like the other guy said if you want to know the nuts and bolts of other guys pricing hit the phonebook with someone just out of your competition range and you'll be amazed at how much you will learn. I do that all thge time.

Brock

Be very very careful. Big boys don't always play nice.

Milhaus

yeah - the very first contractor I talked to when I started out on my own showed me a bit of that. I can't really do much else than be honest. I'm not a very good liar.

dutch - good points. I agree completely. That is why I haven't been too concerned about what any one else is charging. I put my estimate together based on what I think it will take to get the job done. I try to find out what other bids are on jobs, but until this point, it is what it is. I feel I put together an honest estimate to run an honest company. But, I don't think it could hurt to know what others out there are charging if I get into anymore competitive bidding.

mark

Bill Brennan

You can always ask them, "where do I need to be to get your business?" If they won't tell you or low ball you...thank them and walk away. If they tell you you might be surprised that you can win their business and still make money. It doesn't hurt to ask.