Maybe you should lower your price.

 
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Old 07-15-2010, 11:29 PM   #51
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Re: Maybe you should lower your price.


What a path to great referrals.....tell your potential client he's a slimeball.

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Old 07-18-2010, 02:35 PM   #52
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Re: Maybe you should lower your price.


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Originally Posted by buildpinnacle View Post
What a path to great referrals.....tell your potential client he's a slimeball.
In some areas of the country there are roofing companies that primarily get their business by looking for roofing signs in people's yards and then knock on the door and find out what the other roofing company is doing for the HO and then give them a lower price or something "free". It is very effective and its easy, the only problem is it can backfire, because another roofing company can do the same to them just for spite.

Depending on the area of the country I'm working, I will change what I say. Seriously, I have seen it get so bad that companies are offering huge discounts and companies in an area are only averaging 500 profit per job if that. (Not even taking into account potential warranty expenses down the road)

If you've ever had several hundred dollars taken from you in one storm you would understand. Working in unlicensed states in my experience has been the worse.

If you do insurance work and you give discounts, that can trigger a landslide. One company gives a 500 dollar discount the other a 1,000 and then another gives even more. Then some companies trying to compete, bid the jobs too low and the installers and roofing supply company are left without getting paid. Depending on the area it can be a nasty cycle and it can potentially add to the fear and bad reputation that roofing in general has with many people.

I have sold in many areas where the competition is mostly well behaved, but when you're in an area notorious for shady sales practices you have to make changes or you will lose your shirt.

If no one gave discounts doing insurance work then everyone would make more. Also, if I were an insurance company and found out about all the discounts I wouldn't be happy.

I'd say to XYZ roofing company "I see that you can afford to give $500 in discounts, from now on I will give you $500 less per each job, because its obvious that your happy with that profit."
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