Dealing with Lowballers
Friday, July 14, 2006
In the construction industry, there's no way to avoid competing with other service professionals. But it's never easy when you have to deal with certain individuals who lowball a project that you bid on. When you provide quality craftsmanship and top materials, disreputable companies can sweep in and low-ball your bid. Even the most well-to-do clients want to save money whenever they can and these lowballers invariably get the job.
How do you compete with lowballers? Those who charge less than fair market value claim that they survive on volume - which means they cut corners and use shoddy materials. To combat lowballers, it's important to talk with every property owner, face-to-face. Sharpen those listening skills and pay attention to what each person really wants out of their project. Once you understand what they want, find out how much they can truly spend. It's important to educate the homeowner or business owner about what the job will require, what you can do for them, how much it will cost, and how long it will take.
But you can also go beyond just your offering your services. Explain that their construction or remodeling job has 3 quality options. They can choose from – Best, Better, and Poor. Let your potential client know that they will, most likely, receive bids on all 3 ways from various contractors. Best and Better will include great craftsmanship (with the difference between Best and Better coming down to the quality of the materials used.) Next, inform the property owners that the Poor option will give them sloppy workmanship, with corners being cut every step of the weay, and inexpensive materials. Then, simply leave behind your business card. Tell them to call if they go with the "poor quality" bid so you can come inspect their job (for free) to ensure the safety of the homeowner.
Finally, make sure you follow up with them at a later date. If the property owner doesn't go with you for that job, they’ll certainly remember you for the next job.
How do you compete with lowballers? Those who charge less than fair market value claim that they survive on volume - which means they cut corners and use shoddy materials. To combat lowballers, it's important to talk with every property owner, face-to-face. Sharpen those listening skills and pay attention to what each person really wants out of their project. Once you understand what they want, find out how much they can truly spend. It's important to educate the homeowner or business owner about what the job will require, what you can do for them, how much it will cost, and how long it will take.
But you can also go beyond just your offering your services. Explain that their construction or remodeling job has 3 quality options. They can choose from – Best, Better, and Poor. Let your potential client know that they will, most likely, receive bids on all 3 ways from various contractors. Best and Better will include great craftsmanship (with the difference between Best and Better coming down to the quality of the materials used.) Next, inform the property owners that the Poor option will give them sloppy workmanship, with corners being cut every step of the weay, and inexpensive materials. Then, simply leave behind your business card. Tell them to call if they go with the "poor quality" bid so you can come inspect their job (for free) to ensure the safety of the homeowner.
Finally, make sure you follow up with them at a later date. If the property owner doesn't go with you for that job, they’ll certainly remember you for the next job.
1 Comments:
commented by 
P., 9:35 PM
P., 9:35 PM
I had a contractor give a cheeper price to the customer which was even cheeper than what I was going to pay them.... I mean .... I hope they get the job done. I spent a lot of time on that job and for it to turn the way it did simply appauled me.
Lowballers is one thing, undercutting after the job has been issued and much time invested on site is another.