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Post Info TOPIC: Loosing business to lowballers....


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Loosing business to lowballers....
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I started cleaning roofs back in 09, and now there is a few competitors taking a bunch of my business.  I am cool with other cleaners, I think the more that are out there, the better the word gets out.  It is just tough loosing many jobs per week to guys who are pricing lower than I do. 

I really really really do not want to drop my prices, as I feel that they are fair.  I have to pay casualty, and worker comp insurance every year.  I just cant keep loosing all of this business to guys who are undercutting me. 

How have you guys treated this?  I dont want to cut my own throat.

 

Thanks you as always.

 

 



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Brad R. Iannacchione
Soapy Roof, LLC
New Kensington, PA 15068



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Iannacchione wrote:

I started cleaning roofs back in 09, and now there is a few competitors taking a bunch of my business.  I am cool with other cleaners, I think the more that are out there, the better the word gets out.  It is just tough loosing many jobs per week to guys who are pricing lower than I do. 

I really really really do not want to drop my prices, as I feel that they are fair.  I have to pay casualty, and worker comp insurance every year.  I just cant keep loosing all of this business to guys who are undercutting me. 

How have you guys treated this?  I dont want to cut my own throat.

 

Thanks you as always.

 

 


I know exactly how you feel! Here in Florida that is commonplace.

I have tried talking to a few of these guys, but in most cases, they are not trying to make a living at this, just a few bucks extra.

Others have had $10.00 an hour jobs all their life and are happy to make $20.

It can not be helped.

Just mention to your job bids that you are competing with some new guys with cheap prices and no experience, insurance, license etc.

Not much else to be done?



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Serving Englewood Rotonda North Port Cape Haze Venice Port Charlotte Punta Gorda Boca Grande Charlotte and Southern Sarasota Counties in Florida.

941-698-1959
www.bergmanroofcleaning.com

 http://www.youtube.com/watch?v=4RNlN3R7CqI



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Thanks Chuck,

I appreciate the kind words. Just a bit down today. I lost 3 today alone. I send out a bid and they now say....."hey, thank you for your bid, but I have 3 others coming over to give me their bids."

Holy crap!



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Brad R. Iannacchione
Soapy Roof, LLC
New Kensington, PA 15068



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Iannacchione wrote:

Thanks Chuck,

I appreciate the kind words. Just a bit down today. I lost 3 today alone. I send out a bid and they now say....."hey, thank you for your bid, but I have 3 others coming over to give me their bids."

Holy crap!


I finally decided, the only thing I can do is educate the homeowner while I'm there and hope the lowballer shows his incompetence.

The lowballers inevitably go out of business, but another one comes in right behind the last.

Down here, a job I bid for $400.00 may be lowballed for $150

They may cause more damage than they do good, but a homeowner can't see that from the ground!

Just be the best you can be and never join them in pricing. You are a professional, they are guys out for a quick buck.



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Serving Englewood Rotonda North Port Cape Haze Venice Port Charlotte Punta Gorda Boca Grande Charlotte and Southern Sarasota Counties in Florida.

941-698-1959
www.bergmanroofcleaning.com

 http://www.youtube.com/watch?v=4RNlN3R7CqI



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Same thing here up North. I always tell the customer to ask for proof of insurance and worker comp. coverage. I think I may start listing prices directly on my website. Sort of a 3 choice of packages.

Just a thought. Price it well above the competitors. People typically will pay a higher price for a percieved better company.

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Brad R. Iannacchione
Soapy Roof, LLC
New Kensington, PA 15068



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There are def ways to stand apart from low-priced competition. I've made some balzy moves that has panned out for the most part. Are you really so different then your comp? And sadly only 1 in 50 customers actually wants to see proper insurances. I've had to seriously ask myself what makes me different before I can take some steps to actually be different.

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Roof Cleaning New Jersey wrote:

There are def ways to stand apart from low-priced competition. I've made some balzy moves that has panned out for the most part. Are you really so different then your comp? And sadly only 1 in 50 customers actually wants to see proper insurances. I've had to seriously ask myself what makes me different before I can take some steps to actually be different.


 great point



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Welcome to the world of business. Also, you'll find alot of what they learned was right off of here. I had three guys do the same to me and I stopped posting. I haven't heard from them lately in my area. I guess when I stopped giving them leads they realized there is more to this than just a rig and a name.

Good luck.



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I'll freely admit that I don't have it figured out all the way, but you have to sell your service, not your price. There are some guys around here who are doing it & we can all learn from them.

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Just starting out here, but here's something to consider when meeting them in person.

Years ago when I was in real estate, we brought our three-ring binders with us when meeting with the home owner.  Pages were color and in mylar sleeves.

Adapting that to the professional roof cleaning we do:

First page, an elegant home with a very dirty roof.

Flip the page to an RCIA cert up front.

License and insurance next.

A few pictures of successful jobs and references.

Wrapping up with info of fly-by-night falls, pictures of etched glass, dented gutters, damaged shingles, concluding that with a page of a tall, dead Arborvitae, damaged by unskilled, uncertified, poorly trained, competitors -- to burn that image of that brown tree in their minds.

On the last page, to leave the final image and conclude your presentation, the elegant home that was on the first page, completely clean and beautiful, adjacent to a pocket that contains your business cards, which you hand them with the handshake.

If that doesn't work, they haven't yet had an experience with litigation and a bad, cut-rate contractor.  They will, and they will remember your professionalism.  I'd call them back weeks later after figuring I lost the bid, just to follow up and see if there's anything else you can help them with.  If they had a bad experience with the lowballer, you'll hear of it and may get a referral.  Might be able to give them a pointer or two about why the paint peeled or why the glass is etched or gutters leaking, etc.

For what it's worth -- it's how I would want to be treated as a consumer.

Al



-- Edited by Skyline Roof Cleaning Virginia on Thursday 21st of July 2011 10:53:26 PM

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Iannacchione wrote:

I started cleaning roofs back in 09, and now there is a few competitors taking a bunch of my business.  I am cool with other cleaners, I think the more that are out there, the better the word gets out.  It is just tough loosing many jobs per week to guys who are pricing lower than I do. 

I really really really do not want to drop my prices, as I feel that they are fair.  I have to pay casualty, and worker comp insurance every year.  I just cant keep loosing all of this business to guys who are undercutting me. 

How have you guys treated this?  I dont want to cut my own throat.

 

Thanks you as always.

 

 


 Brad - give me a call some time if you'd like.  I'll privately share with you what works for me.  BTW - lowballers, hacks and folks that 'come out swinging' just motivate me even more than I already am.  And I'm very motivated......  



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I couldn't agree with you more, Ted.

I hope you are well.

Al



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Skyline Roof Cleaning, LLC

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Al McGlinn

703-795-4636

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Skyline Roof Cleaning Virginia wrote:

I couldn't agree with you more, Ted.

I hope you are well.

Al


 All is very well 'Tom'.  You have mail.  (PM) 



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Great post Skyline...we do something similar. Quality collateral materials go a long way in setting you apart.

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Thanks Ray.  I may be dated with that three ring binder, versus iPad.  Not sure, but I believe there's something appealing to flipping through those book pages with the customer.

What's your preference? Do you use printed or electronic pages to show your customers?

BTW, your logo and biography are great.  It's an interesting story of how you got into the business.

 



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Skyline Roof Cleaning, LLC

Nokesville, VA

Al McGlinn

703-795-4636

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Skyline Roof Cleaning Virginia wrote:

Thanks Ray.  I may be dated with that three ring binder, versus iPad.  Not sure, but I believe there's something appealing to flipping through those book pages with the customer.

What's your preference? Do you use printed or electronic pages to show your customers?

BTW, your logo and biography are great.  It's an interesting story of how you got into the business.

 


I use a photo album.

I go to the door, tell them I'll take a walk around their house, leave them with my photos and come back to the door with my written estimate.

Works good!



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Serving Englewood Rotonda North Port Cape Haze Venice Port Charlotte Punta Gorda Boca Grande Charlotte and Southern Sarasota Counties in Florida.

941-698-1959
www.bergmanroofcleaning.com

 http://www.youtube.com/watch?v=4RNlN3R7CqI



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I never thought of leaving the presentation with them alone for a bit.

Low pressure.

Thanks Chuck.



-- Edited by Skyline Roof Cleaning Virginia on Saturday 23rd of July 2011 09:26:41 AM

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Nokesville, VA

Al McGlinn

703-795-4636

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Skyline Roof Cleaning Virginia wrote:

I never thought of leaving the presentation with them alone for a bit.

Low pressure.

Thanks Chuck.



-- Edited by Skyline Roof Cleaning Virginia on Saturday 23rd of July 2011 09:26:41 AM


Ya, they take it in the house and show it to family, while I take my time bidding the roof. I also always bid pressure washing the house, pool area and driveway and most of the time get at least some of the pressure washing work too. That way, I leave the whole place a showcase home!



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Serving Englewood Rotonda North Port Cape Haze Venice Port Charlotte Punta Gorda Boca Grande Charlotte and Southern Sarasota Counties in Florida.

941-698-1959
www.bergmanroofcleaning.com

 http://www.youtube.com/watch?v=4RNlN3R7CqI



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I have a competitor who will spot clean roofs for $100.


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Roof Cleaning Raleigh Durham NC 919-695-2416 wrote:

I have a competitor who will spot clean roofs for $100.


They don't last very long!

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