Hey everyone! I've been noticing a trend where I'm losing out on jobs to other contractors, and it's got me wondering if my bidding strategy is off. I used to do roofing sales, and I definitely don't want to underbid myself into a bad situation. My business is still new, and I'm trying to build up some references. Recently, I bid on two jobs, but I saw a contractor get both gigs. One homeowner didn't even look at my bid, while for the other, I intentionally submitted a low bid of $300 for just labor, since the homeowner was providing all the materials. I was hoping it would help me get my foot in the door. But then, I found out they went with someone who charged $1500 for the same job! It seems ridiculous that they had a team of five for such a small job. I don't have issues with my appearance, and I wear decent work clothes while showing up on time. I'm starting to wonder if my bids that I write at home could be a factor or if it's simply that my prices are too low, making me seem like an amateur contractor. Any advice would be appreciated! What do you think I'm doing wrong?
3 Answers
Yeah, I think your pricing strategy could definitely use some tweaking. When I was looking for someone to do work in my yard, I purposely ignored the lowest bid because it just felt off. If you had come in with a bid around $80K instead of under $50K, it might have made a much better impression, even if the details of your work were great. Remember, it’s all about how customers perceive your value, and if your price is too low, they might think something is wrong with your service.
As a general contractor, I can tell you that I wouldn’t trust anybody offering their services for less than $300. It's important to understand market rates and communicate to clients that your lower price is due to reduced overhead—not quality. By emphasizing that you provide personal service with the same or better quality, you can justify your rates. Just make sure your profit margins are aligned with the industry standards, even if your operating costs are lower.
Honestly, it could be a mix of things. When people see a bid that’s too low, they may question the quality rather than just jumping on the savings. Think about presenting yourself like you're already an established and busy contractor. Price your work in a way that reflects its true value, and don't sell yourself short. Confidence matters—if you don’t trust your own rates, how will potential clients? There’s also a psychological aspect to it; folks might prefer someone who isn’t the cheapest option because they fear that comes with lower quality.