“I think lowballers are not getting the big picture,” Begley says. “They are in it for the short-term – six months, a year. We are building relationships with our customers, which in turn will lead to loyalty.” from the article THE RELATIONSHIP SELL in this months Lawn & Landscape Magazine
I’ve been saying that hungry for work lowball contractors are hurting the deck coating industry and their clients ultimately, case in point, a bid a competitor gave to an HOA I’m bidding on is about 30k less than I.
The manager asked me WTF? So we sat and compared bids…and sure for 30k less they would have gotten something for their money, but after our meeting was over, I walked out with a contract for 40k on the job, having sold the job on a “relationship, knowledge and as the expert” rather than price. I could have dropped everything out of my bid to bring down the price, but that wasn’t what the HOA really wanted…they were just getting their purse strings tugged at by a scammer who talked the talk…and after we discussed what they were after, the HOA relized that the other bidder wasn’t thinking of them, he was thinking of himself.
It also came out in this meeting that we (Central Coast Waterproofing) carried full auto, workers comp and liability insurance. The other guy…he had no employees so he was going to “sub-contract” to get around that. Liability Insurance was minimal coverage at 100k/200k unlike our policy with 1 million/2 million in coverage. Auto? Hah, the competitor didn’t have it.
The manger knew me from 3 jobs that we did in the past for her. She knew that we would do a better job, the “right job” that would address and solve the HOA’s problems, rather than apply a pretty field dresssing like my competitor was proposing.
But it was the personal relationship and comfort level that ultimately sold the job for us.
Read this article on “Relationship Selling” by clicking the link. Maybe you’ll figure out how to beat your low ball uninsured/unlicensed competitors…