Competition - 79.95 Guys

radfly

radfly

New member
Saw a team in my neighborhood yesterday with a sign saying "$79.97 most houses". They did a good job with a soft vinyl wash and quick sidewalk clean, so I am left asking myself, as a start-up, how can I compete with this?

I was thinking of charging .10 sq/ft for a soft-wash but wow, that is not going to fly in my neighborhood...

I wonder if they tack on additional charges for this-and-that and use the 79.95 as a gimmick?

Maybe I should call them for a quote....

Thoughts?
 
Why do you have to compete with their prices? Figure out a way to offer a superior service with a great value and then charge the prices you need to offer consistent professional results. I can tell you right now it costs me more than 79.97 to wash "most houses" and I don't ever plan on being a charity business.
 
It's that time of the year again, see if they are still in business around this time next year. I agree with what Mike says though as well.
 
They really make it hard on us new/little guys. For me, every residential customer counts, but I'm not going to slit my own throat just to get a customer. I have my rates, which I think are fair for the both the customer and my business. If the customer isn't happy with it, I shake hands and ask them to let me know if they change their mind. Sure, I do leave myself a little wiggle room if the customer wants to negotiate or to run specials, but not anywhere near that low.

I've developed a great report with the residents of my town this year. However, in the last few weeks I've got word that at least one or two someones are offering to clean homes for less than half of my rates. I just tell them that my rates cover things like insurance, training, professional equipment, and experience. I tell these customers that if they with to go without those things and roll the dice with someone else, then I with them the best, and let me know if they aren't happy with the results.

I heard last week that, in the customer's words, one of these guys "blew up" his pressure washer. Not sure what happened, but I just stepped in and did the job at my own rate.
 
I feel everyone around me loves these cheap specials.

I'm working on selecting the right clientele now, and not these price shoppers.
 
But they make it up on volume.

BTW, have you ever noticed that, for the most part, the biggest, most reputable companies are not usually the lowest priced, and are sometimes the most expensive? There is a reason for that.
 
I used to work in a mechanics shop that had another right next door. The difference was my shop charged less, they charged more, my shop was more more busy, but that didn't mean my owner made more money. I learned that you can charge less, but if you have to work more what are you really accomplishing?
Don't get me wrong I have been in a situation where money was tight and I needed some quickly for a house purchase and things were slow. I went into an industry with little knowledge and put a low rate and within a week stole the business from another guy. Got me lots of work, little overhead, but lots of time spent washing. Did that for 3 months then exited that industry as my other side picked up and lets be honest, I made more money with less work, which would you choose. The next season I got lots of calls from that industry, but I just decided to not pursue it.

if you need to make $500 a day as an example, would you rather work 5 hours or 10 hours to accomplish that? You need to learn how to attract and retain those clients that are looking for a quality job rather then a splash and dash.
 
When I was the only tech out in the field cleaning for my business, I had the mindset that I'd rather clean 2 $500 jobs than 10 $100. Now, as we've grown and added employee's, there's been an adjustment to this philosophy. I never want to be the $99 (or less!) house wash company in our area, but I certainly know the pressure and balance of keeping your guys busy in the field while still trying to reach your per man hour $$$......
 
Walker Services said:
When I was the only tech out in the field cleaning for my business, I had the mindset that I'd rather clean 2 $500 jobs than 10 $100. Now, as we've grown and added employee's, there's been an adjustment to this philosophy. I never want to be the $99 (or less!) house wash company in our area, but I certainly know the pressure and balance of keeping your guys busy in the field while still trying to reach your per man hour $$$......
Click to expand...

This is the part I am struggling with very much. Reading on here, and anywhere I can just trying to learn learn learn, and apply it to my operation!
 
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