Lately we've had a lot of subscribers tell us they're struggling with having to complete against people who enter the industry and low-ball prices to get new accounts or to steal accounts away.
One subscriber asked: "How can we as business owners compete with such companies who are out there low-balling us and having all these workers that are most likely illegal and are being paid probably pennies on the dollar. What can one do to avoid this?"
Another business owner made this suggestion: "I had to have a long talk with myself on how to keep my prices where they are (somewhere in the middle), and still get the jobs. So what I did was to include with all my bids a copy of my license, bond and insurance, with all my bids, and a note saying that this is for their protection as well as mine. I ask them to get this information from anyone bidding against me to protect themselves from any problems. You know what? This is an easy way to weed out the LOW BALLERS as they cannot provide this information. I have been winning a few more bids by doing this.
And my friend, Dick Ollek, author of Selling Contract Cleaning Services 101, offered this advice: "I think it is also very important to determine the types of accounts you really want to focus on. There are much easier accounts to clean than restaurants and at higher profits. Determine what you are good at, focus on how to secure those accounts, market yourself as a legitimate, bonded and insured professional company and you will get business. There will always be those contractors who low ball and always be those customers who buy their service. Focus, Focus, Focus. Become an expert in a niche market. Amazing how much fun and how profitable it can be."
We are all facing tough times right now, and dealing with the low-ballers is one battle you may be facing. What are YOU doing to compete and WIN? Please post your comments by clicking on the Comments link below.