Whats your going rate? Been experiencing low ballers recently that make estimates well below the fair market value in hopes that the customer may use them over the competition always end up regretting their actions when they realize they are digging them selves into a whole. Competitive bidding is just part of business but low balling just sends you out of business. With the price of gas going up daily and chems will also how do they manage to do it!!
Kevin
RouteAccounts.com
facebook.com/PoolStar
Replies
I agree with you Heather its all about the customer service and mostly all the low ballers will not give good customer service as its just not worth their while at the rates they charge.
I have came across alot of people that have gone with the "low ballers" and they always end up calling another company because they messed something up. I have also been coming across the low ballers that get a deposit and never return. You have to releize that someone is always going to be cheaper than you. BUt you get what you pay for. Some people might not have the overhead and the cusotmers dont know what to ask to make sure they are covered. For example, Insurance, CPO, Licensed, Referances etc. You need to ask your self what makes "YOUR" company stand out above the others other than price. If a customer only goes with a certain company because of price and nothing else, I would educate that customer and start asking them questions, Well why do you think their that low? Are they insured if anything happens to your equipment/pool, etc. Make the customer feel like you know what you are talking about and make them feel confident that you know more than the competitor. That has worked alot for me. I have also sent out my best tech on the jobsite for free to talk with the customer to give them feedback and answer any questions they might have. YOu will find that customer service like that goes along way. I have gotten almost every account we have went out to just because of the customer service over price.
Hope this helps you! Good Luck!
Love it Jeremy!
Features, + Advantages, + Benefits = Value
Work on this theory and you'll find customers you want. I recently had a new customer (They bought a house I serviced, and I continued through the last month of the season.) send me an email saying, "I am going to go with someone else. They are a lot less expensive". I thanked them for the opportunity and said, "feel free to call me if you need anything."
By the way, I picked up another customer from a similar situation last week. There were no questions asked regarding my pricing. Which customer type do I prefer?
I choose not to participate in the freak-out also.I choose not to participate in the freak-out.
-Jeremy
Florida Leisure Pool & Spa
www.FloridaPoolSpa.com
This topic is always of interest to me; especially since there have always been and always will be low ballers in our industry. Unfortunately, it continues often due to the lack of education and training available to our industry. I also enjoyed Bruce Wettstein’s reply. He understands.
You need to realize that there is a problem with low ballers and that it will continue. That said, you now need to move on with your business. You cannot control the thoughts and actions of others; you can only control your responses to them and their tactics.
Business is relationship driven. So, concentrate on building relationships with your customers and clients. Business relationships build and flourish when you exceed the expectations of your clients. The good news is that you get identity, quantify and then set those expectations - if you know how. There are many ways to accomplish the goal of building sound and lasting business relationships. Learn and then practice them.
Purchases are made primarily due to the value that is perceived and not because of price. This also applies to service professionals as well as other segments in our industry. Notice that I used the term ‘professionals’; because that is what you must become. You must be able to show how and why you are the expert and the professional. You must be able to show why you should be chosen above all others to offer this important and valuable service.
Many disparage the service professional. They believe that all it takes to is a pickup truck and a leaf rake to become successful in this specialty field. No so. It takes knowledge, training, skill along with business and sales acumen. Learn how to separate and elevate yourself and your company from the low ballers and then learn how to demonstrate those distinctions to your prospects, customers and clients.
The pool owner needs to be educated to understand this is an important decision; not to be taken lightly or based solely on price. The decision they are about to make in choosing the person and company who will care for and maintain this valuable asset (their pool) directly affects the health and safety of their loved ones, friends and neighbors. It also directly affects the value of their home. This important and ongoing task should only be handled by the professional. Become that professional!
I gotta say that I have said the same thing many times in the last 25 years ("they won't be in business for long"), but they always end up surprising me, Luke! I've only been in the pool business for the last 15 years, but I've seen it in other businesses I've had/been involved with as well, and they are always a scourge that we all have to deal with.
Here's my thoughts (now, anyway): I sometimes think that by saying they won't last long, we put them out of our minds or rationalize their existence. However, that doesn't make them go away! Some folks don't have insurance or pay workers comp, and skate under the radar. That will obviously make them more "competitive" than the rest of us. Some will work for nothing, or leave money on the table deliberately, which affects us. Some work for cash and don't report their earnings, again, obviously wrong, like all the other examples, but still out there, causing us trouble.
I think the bottom line is that there will always be low ballers, in any market or service. If we educate our customers as to why we do things the way we do, and why we deserve a bit more to do it, then we can fight these guys. If we step up our game and do it better than others, that will show and create more business for us, and take away from "them". The trick is not to compete with the low ball outfits, but to instead drive them out by doing it better and setting the expectation of the customer a bit higher; high enough that "Huey, Dewey and Louie" can't compete.
An old boss once said "some companies do it FOR the customer, and some do it TO the customer". Which one you decide to be determines the amount of work you get, and deserve!