Why aint you the cheapest?

andrus kokerov · Jul 20, 2017

Hi Buzzers!

I bet you all get from time to time the question: why is your price so much higher then the others? Latly theres some new guy in my region and his doing all for 2/3 of my price. So i get that guestion often right now. Whats your response to that? I mostly say that im fully insured and i have 7 years o experience and i now what that job will take to do without cutting corners. Actually he just craduated arbschool and started his company and is hungry to get all the work. Glad for me is that he dosent cope with the difficult ones and i still get to do them. He aint understanding the costs of owning a treebussiness or maybe hi is happy with getting enough money to buy some food and go home. Only good thing is for me that with that way he will never grow without the extra money and be a bigger problem for me. But thats the stuff i cant tell the customer cause i dont like flouting others and that wouldnt leave a good impression of me neither. What kind of tricks do you throw in to still get the job in that situation?

Sidenote: Here mostly all arborists work on their own or with a 2-3 man crew. No big companys.

Gorman · Jul 20, 2017

The answer is that nobody is the cheapest. There will always be someone who will do the job for less. Push your rep and if you don't get the job then good. You don't want to be the cheapest.

oldoakman · Jul 21, 2017

What Gorman said, plus you want to be the best.

96coal449 · Jul 21, 2017

Chances are that his cheap pricing well catch up to him quick. He's certified .... all great. If he is insured to back it all up then that's part of his expenses. Like you said ... he won't be making any moneys to advance with. He'll have to, A raise his rates, or B, keep working twice as hard and probably burn himself out.

southsoundtree · Jul 21, 2017

https://www.google.com/search?q=you...8#imgdii=ehppGeaiO9_PfM:&imgrc=qPi786l08ZJK7M:

flyingsquirrel25 · Jul 21, 2017

Keep selling yourself, your knowledge and your quality. Eventually it will catch up with him. Build your client base that refers you to friends and family. Then more than likely you won't be having to go up against him for jobs. It's called creating a niche, but you must create it so only you fit the niche (of course it's difficult but doable).
The other alternative is to go talk to him. Educate him as to how it should be so he isn't loosing his shirt. But that takes guts to try and build your competition up, you have to be confident in what you are doing so you can out pace him with growth.

Crimsonking · Jul 21, 2017

I really like your thought to reach out. If he is responsive, it will help a lot of people. Him, his business, his clients, and the market at large.

Babberney · Jul 21, 2017

just be careful to keep it non-specific. Setting prices with competitors is illegal collusion.

Gorman · Jul 21, 2017

I used to be that cheap guy. When I first started 12 years ago all I had was a chipper and one ton. I charged 800 a day for a two man crew and ran on a treadmill. This guy can't be making anything so he probably isn't doing much volume either. You can approach him but the best lesson learned is experience through error.

JD3000 · Jul 22, 2017

Right on with the niche. Push what you do best and why it costs what it does.

colb · Jul 22, 2017

Another way to reduce cost is to increase production by ziplining large wood, taking on a small increase in frequency/odds of danger, and a large increase in consequence.

Bottom line, you don't know what that guy is doing. You do you.