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Undercutting Competition: What To Do When A Competitor Undercuts Your Pricing?

Undercutting Competition: What To Do When A Competitor Undercuts Your Pricing?

Undercutting Competition: What To Do When A Competitor Undercuts Your Pricing?

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You offer a valuable service, built on years of expertise, skills and training. You know what your time is worth, so seeing a competitor ad at a price that reduces profits and undermines the value of what you offer can leave you feeling worried about what to do. 

Uploaded by Jarrod Miller-Dean

Housecall Pro

Uploaded 2 days ago

What Can You Do When A Competitor Undercuts Your Pricing?

Home services is a competitive industry, and one of the most frustrating aspects of competition is seeing your services offered for a discounted rate. You offer a valuable service, built on years of expertise, skills and training. You know what your time is worth, so seeing a competitor ad at a price that reduces profits and undermines the value of what you offer can leave you feeling worried about what to do.

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Should You Decrease Your Service Prices?

The general consensus among our members is to not drop your prices and enter into a price war. Not only does it devalue what you offer, it is not a long term business model.

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Delivering quality services and taking care of your customers is often what matters most. While there are homeowners looking for the lowest price service, they may not be right for you. Customers searching for price over value will not be lifetime customers. 

You Get What You Pay For 

You have probably heard it before and even said a few times, You get what you pay for. How many times have you arrived to a service call to find another contractor has caused more issues or provided a subpar repair? Educating your customers throughout the process is the best way to help them see the value you are offering, regardless of cost.

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Part of your branding and marketing should always focus on your core values and unique selling points. If you are focused on price, it will always be a race to the bottom. 

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Final Thoughts

Focus on great customer service and a quality product. Educate your customers on the services you provide and how you are helping them long term. Offering specials or small discounts for customers is not a bad thing, but make sure you are not eating away at your profits at the cost of winning a customer. Being the cheapest is not synonymous with being the best. 

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