We’ve got a few sales tips for a specific scenario. And it’s bound to happen at some point in your career. Another local general contractor purposefully undercuts your pricing.
There are a few routes you can take and a few options to consider, but the last thing you should do is panic. You’re an excellent contractor who can stand up to the competition.
Let’s take a look at three sales tips you can consider when this very thing happens to you.
1. Evaluate Costs and Pricing
While there’s not necessarily anything wrong with your current pricing or costs, when a competitor is undercutting your price, that’s an opportunity to reevaluate your current pricing and cost output.
If there happens to be room for improvement, then that’s something you can address. Make sure you’re getting the best prices on your supplies and materials. And make sure that you’re lowering costs as much as possible.
What you shouldn’t do is end up undercutting yourself. Don’t reduce your profit margins and compromise your business or your employees’ well-being just to say you have the best price. Having the lowest prices doesn’t make you the best contractor in the land.
2. Prioritize Quality and Customer Service
Once you’ve taken the time to evaluate your costs, another of our sales tips would be to prioritize quality and customer service. People will pay for quality and experience more often than you think, and these things actually will contribute to you being the best contractor around.
You may not be able to control a competitor who is purposefully undercutting your price, but you can control how your business is operating on a day-to-day basis.
You can create a work environment where both quality work and customer service are valued, encouraged, and praised. As you foster this kind of quality work environment among your employees, your customers will start to notice and spread the word.
While your competitor might have better prices, that doesn’t mean they have comparable or even quality work. It’s pretty well known that a good general contractor is hard to find. Once your local clientele discovers that you’re the best, you won’t have any problems with a competitor who is undercutting your prices.
3. Offer More and Better Options with Financing from HFS Financial
While your competitor is likely cutting costs in a way you’re not willing to risk, you can make sure that you’re offering your customers the best array of options available with financing from HFS Financial.
When it comes to competing with other local general contractors, you do need to consider how to set yourself apart. One simple and easy way to do that is to be certain that you’re offering the best financing options available through HFS Financial and informing every single client or potential client about their contractor financing options.
That can be as simple as mentioning that you offering contractor financing through HFS Financial at every initial meeting.
The fact that your competition might be undercutting your prices becomes less of a concern when you’re offering your clients excellent financing options through HFS Financial. You just have to remember to let your clients know.
Sales Tips from HFS Financial
One of the most important sales tips we can give you from our HFS Financial team is to talk to your clients about their financing options. You never know which clients might need financing and which might not, but we can guarantee that if your clients don’t know you offer financing, they can’t take advantage of it.
And if your clients don’t know you offer financing, then you might not stand out from the competition.
At HFS Financial, you can stand apart from the competition and move ahead with your business. With HFS Financial, “You Dream It, We Finance It.”