undercutting on price will also lead you into doing business with people who are willing to take the cheapest service on offer.
That customer will not be reliable, nor will they grow into a well settled bomb proof earner over the years to come. They will simply tell you to naff off when the next bloke turns up with a cheaper price.
The clearest examples of price undercutting and its damage to the industry are the national brands.
In every town up and down the country there are snotters, puke, bird turds and grime covering almost all of the big name retail outlets. That isn't because the they are not paying for window cleaning, it is because they are not being washed by the people who are supposed to be doing it.
Why are they not being washed?
??
Because the companies that should be washing them have put in such a stupidly low price for them that they can't really afford to send a van out 75 miles there and back to wash one bank, so they simply dont bother to go there at all. But of course they still find the time to post a bill.
So people like me, who like to see whole sections of high street looking spic and span get really naffed off looking at snot ridden retail chains, knowing that somebody somewhere is cashing in on money for nothing, as well as making the industry look bad.
so basically undercutting is not good for anything really, though for people on the back foot it is a quick revenue generator.