When Other Contractors Cheat
By Jayme Broudy, Contractor’s Business School
Dear Jayme: Some of my competitors are doing things that seem wrong, like low-balling estimates to get jobs and then sticking the customer with upcharges later. I'm losing some business to this sort of thing but I don't want to operate that way. What can I do? - Shaun
Dear Shaun: Every market has sleazeballs who'll do anything to make a buck. They'll lowball bids, use substandard materials, hide shoddy work, weasel out of their warranties, etc.
Sleazeballs survive because every market has customers who allow themselves to get fleeced: Customers who don't check references or the Better Business Bureau, who buy only on price, who don't insist on detailed written contracts, and/or who don't pursue legal action against bad contractors when it's appropriate.
So what do you do to insure that you're not losing jobs to shady operators? Well, you can only control your behavior and that of your employees, so that's where you focus.
• Don't concentrate on the "lowest price at any cost" market. You can't win there. Instead, aim higher to the clients who care about quality and reputation.
• Keep your operation impeccably honest and ethical. Keep your quality, on time performance and customer service at extraordinary levels.
• Educate your market focusing on results, referrals and references. A documented, top-flight reputation will guarantee solid business volume if you stay out of the "lowest price" market.
• Don't even think about compromising your ethics for the sake of making a few more bucks.
You can't focus on every market: you have to pick your target clients and tailor your business to them. This means that you won't get every job but that's okay if those jobs aren't in your target market. Pick your niche, do great work, and ignore the antics of the slimeballs.
I want to preach a bit about the importance of keeping your business ethical and honest. I know a general contractor who was inspecting some plumbing, found a questionable shortcut and called the plumber on it. "No big deal, the owner'll never see it," was the response. "Doesn't matter," said the general. "You do it right whether the owner sees it or not, because my name's on this job." This general isn't cheap and not the fastest, but he's booked a year out and turns down business.
Everyone is occasionally tempted to cut corners especially when it seems like everybody's doing it and getting away with it. But at the end of the day, all you really have to show for yourself is your word, your honor, and your reputation. That's what you go to bed with, what you teach your children and employees, and the real measure of your success.
Funny thing is that if you stay true to your ethics over the long haul and enforce them throughout your business, you may lose an occasional job but you'll most likely outlast the fly-by-nighters and enjoy yourself along the way.
My Best,
Jayme
Contractor’s Business School® is a coaching, training and consulting firm specializing in helping contractors produce more profit in less time. Calling on experience dating back to 1993, the company has worked with hundreds of contractors in many specialty areas to build successful stand-alone businesses. Visit www.contractorsbusinessschool.com, or call (800) 527-7545 to get the FREE CD "10 Key Strategies to Build a Business that Works."
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