Beat any competitors bid?

[peterng]

In many different trades I am constantly seeing companies claim they will beat other competitors prices. For those of you who advertise this claim, how do you go about managing the claim? There must be a fair amount of clients who would be inclined to take advantage of a claim of this nature.
Thanks,
Pete

 

[Slvrmple72]

Smooth as silk salesman who sells other stuff that the competitor omitted in their bid when added is showing what a tremendous value you the customer are getting even with the additional cost. Company X has offered to show you the secrets of competitive bidding for $200.00 and I can match that as soon as you let me see the written bid and what it entails. ( I read it ) Okay Mr. Peterng, I see that they are offering you an "okay" deal here but they have totally missed the mark on the importance of establishing a rapport with your customer, you see this is critical, CRITICAL, for you to make that transition from a money losing sale or one where you help the customer realize the importance of needing the additional work, at a very fair price, and I can offer this vital information to you as well as match that competitors bid for only $250.00! Wait!? $250.00 you say! That is more! What you need to realize is that they cannot offer you a better deal than that. ( Company X cannot because they will be going back on their word. Think about it: they told you 200 for "this" and now they are going to say they will offer everything I will for say $220 to $230. This undervalues what they originally offered which means to you as a smart customer, which I know you are, can say why not give me the original deal for $170 to $180?
BUT WAIT! I can give you an even better offer! Peterng if you act now I can also give you, at a modestly discounted price, the sellers guide to ..... blah blah blah.


Starting to get the picture? Or did I leave you more confused?

Salesmanship, salesmanship, salesmanship. It's all part of the dance, just some customers are wallflowers no matter what you offer them!

 

[pdqdl]

The beat anyone's bid is a competitive gamble. They are usually offered by folks that can afford to work cheaper [smaller company, more efficient management, etc] or don't need as high a profit margin to get by.

Let's say that you are pretty competitive. You get to see the other guy's bid before you walk away, entitling you to know the sell price before you hand in your quote. That is a distinct advantage when handing in a bid.

The alternative, as explained above, is the practice of "selling up". Match the price, and then sell more service.

Sometimes, for some companies, it's worth taking the loss to get another customer. Myself, I don't match price. I ask the customer what part of getting a good job do they want me to subtract from my price so that they can get the lowball price? At least 1/2 the time, they didn't really like the other company, but they were willing to quote their price to get the best deal.

 

[windthrown]

I give bids based on my operating costs. I do not compete with lowball Mexican prices. I get maybe 1/2 the jobs that I bid. I get all kinds of questions, like "do you have a cash price", or "can you come down on that bid"", and that kind of stuff. I have one price, as I have a legit business. I do not lower my price unless they want less work done. If I did something like trying to beat all competative bids, I would be beyond broke and busting my ass off. I explain to people that I do a high quality job, and I have dozens of local references. I am also a local born boy and I speak English. It helps me get top quality clients around here.

 

[peterng]

I was impressed with the caliber of the answers as well. Tremendous amount of business experience out there that I find just as usefull as searching through the technical aspects.

I come from Windthrowns camp. Honesty and hard work. My prices already include a 20% markup for non payments and bidding errors and I don't ####er. My prices cover my costs and pay me what I want to get paid.
Pete

 

[ASD]

If they put it in writing ie. we will beat any price by XX% you have them by the balls call every one you now and wright them an est for all their trees for lets say $0.20 on the dollar of what you would do it for and then have them call the other co. and make them do the work for next to nothing the trick is to wright a vary vary specific bid and then sit back and watch them

 

[MonkeyMan_812]

I have told the H.O to get the bids they are gonna get then show me the lowest one. A written estimate that is, with a company logo on it. Then I'll tell them if I can do any better. If not I walk away. I try to be fair to the customer but I aint workin for free. To much expense involved.

 

[xander9727]

I have no desire to be the cheapest price. I tell clients that they (the low baller) knows what their time is worth.

 

[MonkeyMan_812]

Yeah, at least 100 bucks an hour. If I cant make that, I walk away. If I can be a (lowballer) and still clear after taxes, labor, fuel, 55 bucks an hour PROFIT, I'll be a lowballer all day long. How come when a retail store (like Sherrill Tree 150% price guarnatee) advertises that they will price match, everyone thinks its great but if we do, it its such a horrible thing? I do agree that any company that advertises that way is usaually some chump who wants to undercut everyone else and usually ends up working for nothing. I dont advertise that way, and usually dont even say anything to the H.O either. But if it comes up in our conversation, i'll tell them that we will try to beat the lowest price. HACKS SUCK!

 

[Henry111]

Ive been lowballed plenty of times. But after I ride by their work, it all comes clear to me. It seems to me that the custumer thinks they got a hell of a deal, when really all they got was what they paid for!! Its hardly ever apples for apples, the work that is. As for the lowest price, NOT ME but I will give you a FAIR PRICE. Arborist's should keep the prices where they belong, and then we would ALL have better paying work.

 

[xander9727]

Ive been lowballed plenty of times. But after I ride by their work, it all comes clear to me. It seems to me that the custumer thinks they got a hell of a deal, when really all they got was what they paid for!! Its hardly ever apples for apples, the work that is. As for the lowest price, NOT ME but I will give you a FAIR PRICE. Arborist's should keep the prices where they belong, and then we would ALL have better paying work.

Can I get an Amen!

 

[Henry111]

Can I get an Amen!

AAAAAAAAAAAAAAAAAMEN!!!! BROTHER!!!!!!:biggrinbounce2: