Why are so many people annoyed about undercutting?
Its been around for years, centuries! Thats business Fact! It does not matter if its commercial or domestic.
Plus pricing structures are different for every one from one man bands to large corperate companies.
Look in the shops £££ we can save you this, builders, we can save you this much... everywhere there is price cutting... why?
Everyone can offer quality, reliability, professionalism...technology, wfp systems...better tools if they have the money to invest.. And yes Insured... everyone seems to think just because he is cheaper they are not insured. so whats left to make you different from the competition...? Price...thats all that is left.
Get over it! If a company or a one man band can do the job better or exactly the same and he is offering VALUE FOR MONEY by that I mean UNDERCUTTING you, the one who has lost the work.. well maybe you should rethink your market, Margins..and maybe your entire working infrastructure.
Ask yourself why did I lose that client?
Am I not competitive? No as I offer quality! That distinquishes me from the competition!! Well rethink your infrastructure. Maybe that is not the best selling point in the economic climate.
Why am I charging £8.00 for 6 windows? How can that company or one man band charge £6.00...he is crap...wont turn up... not reliable... how do you know that.. All it is.. is just that you are annoyed at being over priced..not competitive.
Maybe you have just spent £6000 on a WFP system and have to charge more to get a return on investment..ROI. Maybe you borrowed from the bank.. high interest rate blah blah blah... You did not research the market or did not expect to be undercut.
And I am sure, many wont sayit, but all of us have probably undercut someone..at somepoint. Especially when we start up. After the business is rolling we then increase the price... thats business
The long and short story is there will alway be a company that can do the job better and cheaper and probably safer and yes Insured for 3 times more as much as some of 3 of you put together.
If your work is excelent, and you deliver what you say.. then undercutting a client wont make them leave you... Clients wont leave you just because of price all the time.
Maybe you rushed the windows once or twice, or hurried for some unknown reason... did not wipe that last sill, left a smear... its not the undercutters fault you lost.
Its yours..
1. for being either too greedy, over priced.. or just not being competitive.
2. Your work is not as good as it once was....
3. Your over heads are to high..
4. You Just bought a flash car, house... blah blah... maybe you should have waited for that luxuary item.
Rethink your infrastructure, if you cant be competitive its your problem ... so resolve it.
I undercut lots of people and I will continue to do so. Why? Because I can still get a great return. It business...and someone out there will undercut me. So to stop it from happening I rethink my infrastructure....
Dave
Dave