Why Good Contractors Still End Up Competing on Price

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Why Good Contractors Still End Up Competing on Price

Howdy Friends,

About three weeks ago, I wrote a LinkedIn post about an interesting paradox. Contractors and trades companies often want to grow, attract better customers, and maybe even bring in stronger talent, but then get quiet when it is time to talk about what actually makes their business worth choosing.

I understand why it happens. Most of us have a natural instinct to protect ourselves. When the conversation gets close to home, it can feel safer to be vague. You don’t want competitors copying you or your peers judging the way you do things. You don’t want to make a strong claim that you’re not sure you can back up.

But that self-protection holds your business back.

A lot of contractors think they are protecting “proprietary” information when, in reality, they are hiding the very things customers need to see to trust them. Your process, your workmanship warranty, why you use certain materials, how you solve problems, and what you believe about doing the job right are reasons someone chooses you over the next contractor on the list.

Now, there are things you should keep private. Don’t publish your margins, vendor pricing, employee information, sensitive customer details, or anything that truly belongs to a customer. If you take photos inside someone’s home, make sure you have permission and keep personal items out of the shot. And, if you are developing a truly proprietary system or product you plan to sell, don’t give the details away.

But most of what we’re hiding is not that.

Most of the time, it is the things that build trust. We are hiding standards, beliefs, process, proof, and the details that separate us from everyone else. Then we wonder why customers treat us like a commodity.

It’s because customers cannot trust what they cannot see.

If a customer cannot see why you are different, they compare the only thing they can clearly understand, price. That is how good businesses get dragged into price wars. We need to show the value behind our price before we give the customer a quote.

Workmanship warranties are a good example. If you stand behind your work, talk about it. Explain what your warranty covers. Explain why it matters. Show people that you have thought through what happens after the job is done. That kind of information answers the quiet question in the customer’s mind: “Will these people take care of me if something goes wrong?”

The same thing applies to material choices and installation methods. If you use a certain product because it performs better in your climate, say that. If you prep a surface differently because you know it helps the work last longer, explain it. Somebody may disagree with you. That is fine. If nobody disagrees with anything you say, you are just blending in with your competition. Clear beliefs give the right customers something to connect with, and they also give the wrong customers a chance to move on.

This applies to hiring too. The best employees want to see more than a help wanted post. They want to know what kind of company they may be joining. They want to see how you treat your crew, whether there is room to grow, what kind of standards you hold, and whether the work culture looks healthy. Pay matters, but people also want to feel like they are joining a company that will care for them long term.

That does not mean being careless. There is an old line I like that says you should keep an open mind, but not so open your brains fall out. That applies here. Be open enough to build trust, but not reckless with things that should remain private.

If you are in doubt about sharing something, ask yourself whether it would build trust if the tables were turned, or whether it would feel like you had just learned an inside secret. 

Later, Chad Beachy

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