Should I lower my cost to get jobs?

[893]

Please be honest if you have some business experience, I have a small roofing business only 2 1/2 Years old. I'm also 23 year old and most of my competition are over 40 plus years n have been in business for a while, I usually focus with roof maintenance and replacement but some potential customer seems like they want my service but (some of the other roofing companies underbid) and they want me to at least match there price or be close to there price, I feel like if i do i might loose profit or run out of business in the future, my crew for the past 2-3 year have not done any bad work we replace at least over 25 roof a year high quality 10-30k projects and have not had any leaks and we get really bad weather in our state so we do good work and we also have video testimonials and over 40 google reviews all 5 stars.. i hire a markerting fella for SEO and i kinda getting results so far i used to contact realtor for business but some realtor can only used you here n there i really want to growth my business but idk if I'm charging to much or what the problem is i honestly only carry high quality material and underpayments and every new roof we install has a 50 year warranty with the manufacture i really feel like i might be in a rush to growth my business idk if i should take it slow or should i match others prices so i get the job? sorry for my spelling I'm working on bids and typing at the same time please be honest i would like your opinion on how to grow the business and what to do from now on

[Rob]

if u under bid and do not make a profit - u lose.

clients that want cheaper = explain to them
something will be cut back on their roof.

a Roof is The most important item in most of
the country even in Dry Drought climates.

if client wants cheap - they just shafting themself.

find books on customer service and sales to
get the price u want.

[falsi fiable]

I re-roofed about 7 years ago: 1500 square feet of rolled asphalt and 500 square feet of Spanish clay tiles. Spent over $15,000. I didn't hire the least expensive contractor, I hired the most experienced, ethical, and CLEAN contractor. With my roofing estimate, the contractor handed me a stack of some 50 thank you letters from satisfied customers. At the end of each workday, the company thoroughly cleaned up the site, never leaving a mess. When a leak was discovered months later, the contractor spent days trying to solve the problem and eventually did.

People want good contractors, not usually the least expensive. Focus on your quality and providing top-notch service. Word of mouth will spread when you do good work. If someone wants cheaper, tell them your prices are competitive for the quality of work. Don't lower your price too much for people who are price elastic. Just move on.

How long have you been doing this type of work? A 50-year manufacturer's material warranty is completely worthless. As you know, the biggest cost in roofing is labor. That 50-year warranty covers about 10% of the cost to fix a problem. Your company should offer a 15-year leak warranty covering materials AND LABOR.

[Lalit]

I thimk that you are not able to put across your plus points and your strengths in a clear and unambiguos manner to your potential customers. Maybe you should carve out a price in elastic segment - who is more bothered about the quality rather than the price.
You may look at referral marketing and not get into price senstive segment.

[APN]

I think that the first step is to know your exact cost (for top quality material, labor, transport, taxes, expected profit margin etc). Then you will know whether <Quote>...at least match there price or be close to there price, ...<UnQuote>

Whats with SEO? Hope you haven't gone in for a "internet outsourced program". What you need from any good marketing guy is to study your situation in person and suggest where to focus your efforts.

Apart from realtors, you should try trade bodies of construction professionals who might generate solid leads.

Another possibility is to get a list of houses constructed about 7-10 years back since they might now be requiring replacement roofing.

OK

[spliff]

Sometimes trying to compete with established companies can be pretty tough, Most of these companies have been around a long time and contractors will use the same crews over and over. As for the homeowner market, Suppose you worked out a deal with one homeowner saying "If I do the job for less than everyone else, would you act as my reference?" Then you have a homeowner that people can call to get an honest answer about your quality. If you don't take drastic steps once in a while, getting work will be hard. Mass mailings to older neighborhoods can help also. Also walking around an older neighborhood on a weekend and talking to homeowners also helps. Best of luck to you!