Do low-ballers hurt your business.

[tman7]

I have a friend in the CC business who is always complaining that the local low-ballers (the people who have the roadside signs for $99 whole house carpet cleaning) are making it harder for carpet cleaners to make a living. By giving the general public the perception that carpet cleaning should not cost much more than a Rug doctor rental, fewer people are willing to pay what is necessary to profitably run a CC business. He believes a carpet cleaners coalition should be created to educate and encourage CC's to charge higher prices. Do you believe low priced cleaners are a threat to your business?

 

[TimP]

The way I see it....it wont take them long to be run out of business. Mean while you're making a profit although maybe less than you would like....eventually their customers will be calling you and have no choice but to pay the higher price.


The biggest problem self employed business people have is that they don't know what it costs for them to be in business....hence charging to little and soon they are gone. And if they are just getting by it's only a matter of time before something comes up and they loose it all.....

 

[Desk Jockey]

I think he's using them as a scape goat.

You can buy a hamburger at McDonalds, Wendy's, Burger King for a couple of dollars or less.

However Red Robin sells them for $9.00, do you think they are worried about the "Low-Baller" hurting their business?

It's the market, if he is in the "low ballers" market then maybe they are hurting him. But rather than complain about how tough it is to compete with them, maybe he should focus on better clientele.

If he's not a low baller himself, then they are really not to be worried about.
8)

 

[allpro]

Maybe a little, but not enough to make it hurt. If the low ballers in your area are hurting you, use your advertising to educate your customers right there - before they even make a phone call in for an estimate of appointment.

We dealt with 2 companies advertising 9.95 a room pricing in the same places we were. We simply incorporated a bit of information about the old bait and switch in our ads, and it rang our phones off the hook for that reason alone.

 

[Wayne Miller]

What Richard said. Whether it's $6.95 a room or $0.69 PSF, we all pick the market we're most comfortable with.

 

[Bryan Irvin]

I dont even think of the lowballers as my competition.

Bryan

 

[bob vawter]

The BASSturds anyway.......!

 

[bob vawter]

That's true

 

[XTREME1]

I am a lowballer(I think)

Lets look at todays jobs
first one 7 rooms, 2 staircases and a hall vac, prescrubbed and steam cleaned $274.95

Second 400 sq ft tile clean and seal $350

Third 2 couches $150.00 cleaned and protected

 

[Desk Jockey]

You're just above low......like your IQ!

 

[ErikG]

Heres a guy who advertises some crazy prices in my area



One Touch Carpet Cleaning
727-657-5496

Five rooms deep cleaned and deodorized only $59.95 **NO HIDDEN COST** I use the safest and most effective carpet cleaning chemicals on the market.
Sofa & loveseat $59.95, that includes deep scrubbing and deodorizer. Honest and reliable service. We take pride in our work. Family owner and operated. We clean your carpets, NOT your wallet!!

....CLEANER, FRESHER, LONGER LASTING CARPET....


For More Info: http://www.myspace.com/onetouchcarpetcleaning


PET ODOR SPECIALIST*****
CARPET & TILE REPAIRS*
24/HR WATER DAMARE REPAIR*
CAR & TRUCK INTERIOR CLEANING*










Location: Tampa Bay Area
it's NOT ok to contact this poster with services or other commercial interests
PostingID: 845854527

 

[Dolly Llama]

someone please define at what price the "low baller" scale ends

Some would consider Crowley (MaTt mUrdOcK) a low baller.
and if he was in your hood, I'd expect he would/could have some effect.


Then there are the outfits that just don't do a very good job, (either connecting with the custy, or workmanship) regardless of price.
They shouldn't be an effect on your biz.
Not long term anyway.
(unless you're one of them)

as far as collusion on price fixing, (everyone getting together to charge more)
sorry boys, just cause some can't gross $100 to $200 an hour at .20, .30, 40 cent-0-ft, doesn't mean others can't

It's called a "competitive edge", i believe.
and it's up to YOU to find ways of being more efficient (or loved better by the custy) to compete in your chosen market


..L.T.A.

 

[Shawn Forsythe]

He believes a carpet cleaners coalition should be created to educate and encourage CC's to charge higher prices.

Such entities already exist.

Are you a member of CCINW?

 

[Ron Werner]

as much as a coalition sounds good, its like being part of a union. It never works as well as individuals doing for themselves what the coalition would do for them.
If each individual markets just a little about the difference in quality that a more professional cleaner can provide and that they get what they pay for, then that will go much farther than a bunch of coalition ads.

I just got a compliment from a client that I cleaned for Home Depot. The owner said I was the most professional cleaner they had ever used. Its a great compliment for myself but its a pathetic statement for the industry. I didn't do anything THAT spectacular. Moved their furniture with sliders and a lift buddy, set up corner guards, vacuumed, pretreated, sebo'd, rinsed. The basics.

SO, as for the low-ballers, they aren't competition. If someone wants to use that type of cleaner I will educate them as to what they can expect and possibly recommend some of the better low-ballers.
A lady had me give a quote, ~$1000 clean and protect, and her husband and mother-in-law out voted her and they went with Coit because of a "special". I told her if she wants to improve their work to prevacuum extremely well before hand. Don't know what the special was but most likely something like a $100 house pkg.
Like Terry says, I only do one job a day, but at $1000/job its all I need to do.

We'll never get rid of the low-ballers so just position your busn so your clients know the difference and if someone wants YOUR type of work, they know that they'll have to pay extra for it.

 

[Numero Uno]

Not I ,but the industry as a whole.Which I love dearly...Yes...

But been witnessing it for 32 yrs,an it ain't gone away yet...

 

[diamond brian]

If you have any down-time due to lack of business at your chosen price points, then low-ballers are indeed hurting your business.

 

[TimP]

I price around what greg charges maybe a bit higher but I'm probably considered high in my area....I hear it all the time that they had it done cheaper last time. And I loose a lot of callers that no matter how much you try to over come the objection it goes right through one ear and out the other.

However word of mouth has been the biggest help, and when people are happy and tell their friends even if they think you are high often times they use you so that they can't tell their friends that they couldn't afford you. So I think that helps a lot. Usually once I'm done they understand my pricing and are happy to pay it.

In my area if you are lower than I am then you're just asking to go out of business cause my competition in the low ball price range are 69 bucks a whole house type. I don't consider them competition however I feel they ruin the market and keep bad stereotypes going like getting your carpet clean removes protector and makes your carpet get dirty fast.....that's my biggest gripe with them .

 

[bob vawter]

Larry...a lowballer is someone that can tell you the temperature of the toilet bowl water....!

 

[Jim Martin]

no...............

 

[renegade_cowboy]

The bottom feeders take care of themself and are out of business within a few years. Custy's sometimes have to get burned to realize that you get what you pay for and that going cheap isn't always the best thing. There will always be bottom feeders and there is no use worrying about them. Just focus on what your doing and be aware of your real competitors.

:mrgreen:

 

[Desk Jockey]

The Chavez Definition of a Low Ball Carpet Cleaner:
Anyone that charges less than what you charge. "How can they afford to do it for that little?"

Whether it's a penny or $50.00 less than you. :mrgreen:

 

[B&BGaryC]

I was on the verge of insanity over low-ballers when I realized, the people who are genuinely concerned with finding the lowest price are not my customers and are just wasting my time. There are a few SFS tricks you can use, but eventually, price shoppers won't be a problem.

The only problem is when you don't have the confidence to know it doesn't matter that they seem concerned about price. The confidence to stand in front of a customer, not willing to budge on the price, and have them see that. Not see that you are arrogant about your prices, but see that you charge more, and you know you are worth more, and they can't trick you into selling a Lincoln at used Kia prices.

And no, I didn't read the whole thread, just the first 1 1/2 posts.

 

[Dolly Llama]

The only problem is when you don't have the confidence to know it doesn't matter that they seem concerned about price. The confidence to stand in front of a customer, not willing to budge on the price, and have them see that..

yea??
I'd bet my bottom dollar Steve T negotiated many a contracts when he was actually in biz.

is he now suggesting NOT to negotiate?
(Now that he's NO LONGER in biz and has become a paid industry gUrOO)


..L.T.A.

 

[B&BGaryC]

You don't de-value your work. If you drop the price, what's the assumption? Your work is not worth what you are asking for it. If they cannot afford what you are asking, they can have less done. Only apply protector in high traffic areas, skip the furniture moving, pay them in advance for a referral to a friend or family member.

Been a while since I looked over Steve's stuff, a lot of that may not have anything to do with his program, proof positive that I still need to attend SFS.

The point is, you don't just drop your price because they ask you to. Your work is valuable.

 

[Able 1]

first year $55.00 two rooms and hall
second year $65.00 two rooms and hall
Third year $80.00 two rooms and hall

I low balled to start and there were a bunch of custy that don't call because of the price raise but ,thats alright with me cause the new custy's expect to pay that much, or they don't think the job was done right.

 

[Ron Werner]

a repeating comment is that low-ballers will disappear after a while. Here in Victoria, I know of half a dozen or so low-ballers that have been in busn over 10 yrs and show no signs of leaving. This past summer, one did go bankrupt, but I think there are other reasons, he was always busy and been around for years.
They just have to advertise more in order to keep finding new fish to swallow their bait. They have very few repeat.

You're right, lowering your price devalues it and sends the wrong message. I remember Steve Marsh telling a story of presenting the bill to a very wealthy man. Each time the guy would say, Its THAT much!!? And Steve would explain his price. Steve asked the guy's pilot why he always questioned it. The pilot said he does that to see if he's being ripped off. He said if Steve ever dropped his price, that would be the last time he would use Steve's service. Good story to remember.

 

[Bruce Humphrey]

Larry...a lowballer is someone that can tell you the temperature of the toilet bowl water....!

Would that be you Bob ?

 

[bob vawter]

Now come on Bruce.......how else would i know that.....?

 

[Bruce Humphrey]

:shock:

 

[bob vawter]

OK Bruce....LOL all you want....but SOMEDAY,

you'll unnerstan.....!