Forum Discussion

AnthonySalazar's avatar
AnthonySalazar
Jobber Ambassador
21 days ago

Are cheap competitors actually your fault?

This is probably going to rub some people the wrong way, but I think it’s worth talking about.

A lot of service business owners complain about cheap competitors.

I get it.

There is always someone willing to do the work for less.

In my industry, I’ve seen people charge prices that make no sense once you factor in drive time, labor, supplies, fuel, insurance, taxes, and the actual time it takes to do the job right.

But I also think we have to be honest as business owners.

If the only thing a customer understands about your service is the task itself, they are going to compare you against the cheapest version of that task.

For us, that would be:

“They scoop dog poop.”

So the customer starts comparing:

  • price
  • frequency
  • who can come sooner
  • who seems cheaper

That’s a weak position to be in.

The customer has no reason to value the difference because we haven’t explained the difference well enough.

That’s where positioning matters.

For us, we had to get much better at explaining what the customer is actually paying for:

  • proactive communication
  • reminders before service
  • on-the-way messages
  • gate photos after every visit
  • waste hauled away
  • thorough multi-pass yard checks
  • professional invoicing and scheduling
  • reliable weekly service
  • trained and background checked technicians
  • a company that shows up consistently

Those things matter to our best customers.

And when we looked through our reviews, customers were already telling us that. They were saying things like:

  • “worth every penny”
  • “like clockwork”
  • “one less thing to worry about”
  • “they text before they come”
  • “they send a picture of the closed gate”
  • “they take the waste with them”
  • “our last company left the gate open”

That changed how I thought about cheap competitors.

Some customers will always choose the cheapest option.

That’s fine.

But if too many good-fit customers are comparing you only on price, your message may not be doing enough work.

Your marketing should make it clear why your service costs what it costs before the customer ever asks.

That means talking about:

  • risk
  • trust
  • reliability
  • communication
  • safety
  • convenience
  • consistency
  • the cost of hiring the wrong company

The cheaper competitor may still win some customers.

But I don’t want to lose the right customers because I failed to explain why we’re different.

Are cheap competitors hurting your business, or is your positioning making it too easy for customers to compare you on price?

20 Replies

  • artist's avatar
    artist
    Contributor 2

    I wholeheartedly agree with your perspective. It’s our responsibility to clearly explain the why and help the customer understand the value behind our recommendations. Most customers are familiar with the saying, "you get what you pay for," but if they don’t understand how choosing a lower-cost option today could lead to higher expenses, more repairs, or reduced performance in the future, then we haven’t done our job effectively. As a company, it’s up to us to educate our customers and provide the information they need to make informed decisions.

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      Exactly. I think a lot of us assume the customer already understands the long-term cost of choosing cheap, but most don’t until they’ve been burned by it. That’s where our sales process has to educate without sounding like we’re lecturing them.

  • The list you laid out is exactly where the real separation happens: communication, reliability, documentation, consistency, and professionalism. Those aren’t “extras,” they’re the actual service everything else is just the task.

    What’s helped us is baking those differences into the first impression, not the afterthought. Not just in reviews, but in estimates, follow-ups, and even how the service is described upfront. Because once a customer has already decided you’re “just like everyone else but more expensive,” it’s very hard to undo that.

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      That’s a really good point about baking it into the first impression. By the time they think you’re “the same thing but more expensive,” you’re already fighting uphill. The value has to show up in the estimate, follow-up, reviews, and every touchpoint before they ever buy.

  • Brand's avatar
    Brand
    Contributor 4

    ^"The customer has no reason to value the difference because we haven’t explained the difference well enough".^

    Sales is: value (over) Price. Too often, we don't communicate the value of the service and company in a way that tracks with homeowners. Don't overcommunicate technical stuff. Establish your ability to show your knowledge and professionalism and highlight differences between you and the competition on the sales end. If you take care of their home more as a sales rep than the competition, how does the homeowner think the workers are going to be? Additionally, companies either BASH their competition, or don't communicate the differences between companies for fear of being viewed as a bully. 

    The TRUTH is, there are right companies for right clients. We simply explain the little things that help separate professionals from the rest and further separate ourselves from other professionals based on the added value we bring to the table AND communicate it. 

     

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      I agree with this. There’s a big difference between bashing competitors and explaining the operational differences that affect the customer’s experience. I’ve found the right customers usually appreciate the transparency because it helps them make a better decision.

  • Anthony, you hit the nail right on the head with this one.

    This doesn't rub me the wrong way at all—it’s the absolute truth. In the exterior cleaning and pressure washing space, we see the "cheap competitor" problem every single day. There’s always someone with a DIY rig from a big-box store willing to wash a whole house for a price that wouldn't even cover my fuel, chemical costs, and commercial insurance, let alone turn a profit.

    ​If all the homeowner sees is "guy sprays water on my house," they’re going to pick the $150 guy every single time. And honestly? Can you blame them? If we don't educate them, it's on us.

    ​Like you said, it’s all about changing the narrative from the raw task to the actual value and security you bring to their property. For my business, I had to stop selling "pressure washing" and start selling property protection and professional reliability.

    ​When a premium client hires us, they aren't just paying for clean siding. They’re paying for:

    ​Risk Mitigation: Knowing we understand surfactant chemistry, soft-washing, and pressure dynamics so we don't blow out their window seals, strip their paint, or kill their expensive landscaping.

    ​Bulletproof Systems: Automated on-the-way texts, professional digital invoicing, and instant quote approvals so the process is completely friction-free.

    ​Property Security: Verifying gates are shut and locked before we leave the property so their dogs or kids don't escape.

    ​The "Done Right" Guarantee: Showing up in a marked rig, dressed professionally, and leaving the property looking pristine without them having to babysit the operator.

    ​The low-ballers will always exist, and they can have the customers who only care about the bottom dollar. Those aren't the clients who help a business grow anyway. But if a premium homeowner or a commercial property manager is hesitating on my price, it means I haven't done my job showing them the massive risk they take by letting an uninsured guy with a rented machine near their investment.

    ​Your marketing and your upfront communication have to do the heavy lifting before you ever pull up to the curb. Appreciate you dropping this reminder today—definitely a conversation every service business owner needs to have with themselves!

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      This is exactly what I was getting at. If the customer only sees “guy sprays water” or “guy scoops poop,” price becomes the easiest comparison. Once you explain the risk, systems, property protection, communication, and professionalism, the conversation gets a lot healthier.

  • Sophiera's avatar
    Sophiera
    Contributor 4

    I think there's a lot of truth in this.

    As consumers, we like to think we make purchasing decisions based on logic alone, but research has shown that emotions, trust, and perceived value play a huge role in the decision-making process.

    When customers only understand the task, it's easy to compare based on price. When they understand the experience, reliability, communication, expertise, and outcome, the conversation changes.

    As a residential designer, I've found that clients aren't just purchasing drawings. They're investing in guidance, problem solving, experience, and confidence during what is often one of the largest investments of their lives.

    I also really like your point about paying attention to reviews. Sometimes our customers do a better job of explaining our value than we do.

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      Exactly. Reviews have been huge for us because customers often describe our value better than we do. When the same phrases keep showing up over and over, that’s usually the market telling you what to talk about more.

      I think you'd appreciate this thread where I talked about how I scraped my reviews on Google and Facebook with Claude:

      Are you using your customer reviews to improve your marketing?

      • Sophiera's avatar
        Sophiera
        Contributor 4

        That's a great point. I hadn't really thought about looking for recurring themes across reviews, but it makes a lot of sense. It's a great way to understand what customers value most instead of guessing.

        I'll definitely check out that thread. Thanks for sharing it!

  • LES's avatar
    LES
    Contributor 2

    Client education is important, but beyond what we can tell the client, I think other clients can play a role in educating potential clients and this turns out to be way more powerful than what any cheaper competitor can claim or even how we can extol our value.  We also need to carefully pick out clients.  We are competing for business, but let's not forget that they are competing for services.  Some potential clients are price shoppers, and other potential clients are best value shoppers.

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      I agree. Your best customers can educate future customers better than you can sometimes. That’s why reviews, testimonials, photos, and customer stories matter so much. They create trust before you ever have the sales conversation.

  • I think adding value to your client, so they don't have to call another company is very key in the home service industry. This is how you can tear apart the guys that are undercutting prices. Make that one stop of your truck more valuable and still offer a client something they need. You can price your initial service a little lower to stay competitive even with the cheap guys but then add on revenue by offering other services they may need. 

    For example, my company is a pest control company, but we do things from start to finish. I charge $275 for a rodent inspection and service but ABC would do it for $175. Almost every other company is just there to blindly spray the bugs, only put down traps for the rodents, then only point areas to sealing holes, clean the yard, clean up the droppings, remove junk or garbage. Anything that we recommend we offer to resolve. Safe droppings removal, full home rodent exclusion, junk removal, minor landscaping, anything that could contribute to the pest activity.

    I had a customer tell me, "I wasn't expecting to spend that much on pest control, but I guess now I don't have to call a handyman to seal the holes or a cleaner to clean the mouse poop". Me and my worker looked at each other and smiled because that statement alone is the backbone the company and how we compete with the guys who are out there to undercut prices.

    YOU GET WHAT YOU PAY FOR!

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      That’s a strong example. You’re making the visit more useful instead of just trying to be cheaper. I like that because the customer can clearly see, “I’m spending more here, but I’m solving more problems with one company.”

  • From my experience in day jobs and starting my own business I did one simple thing that eliminates this entire scope of worry from my business as it stands and what it offers. 

    Remove questions involving competitors. They show their own quality and if it pales in comparison to yours, dont even worry about them. Show proof that your quality and INTENT surpasses others because if you show customers you care about them and you care about the job you're doing for them, all you'll recieve is personal attachment during their pay for your service. Some would say this welcomes customers talking their way into paying less.. if you show them a reason not to, (the job well done and above top tier services) they will never ask for a lower price because they trust you.  🫡 

    • AnthonySalazar's avatar
      AnthonySalazar
      Jobber Ambassador

      I agree with focusing on proof. When your work, communication, and intent are obvious, the right customers usually feel the difference. I still think we have to explain that difference upfront though, because some customers won’t know what to look for until we show them.

      • StevesTidyTurf's avatar
        StevesTidyTurf
        Contributor 3

        Thats 100% fair and I understand that angle, my wording may come across different though in the realm of intent. I never bash other companies I just refer to their work styles vs mine. "The way I do XYZ, is different in these ways, ABC, because I do it the more efficient way without disregarding key points on your property.." I can agree, some folks may not understand, and need the numbers broken down.. but, in hindsight, I let my work show the difference by way of time spent, not showing them my numbers vs others. 

  • cpvalet's avatar
    cpvalet
    Contributor 2

    This was an excellent read and opened a new perspective for me. When I wrote out my business plan I was sure to leave out words that made my business seem undervalued. So I refuse to use the words affordable, cheap, or even discount. I know who my customer is and they're not the type of people who hear those terms and light up. 

    I will be rethinking what terms I want to add in when it comes to marketing. I'm working on putting a positive spin on all of my communication and this was so helpful. 

     

  • Sophiera's avatar
    Sophiera
    Contributor 4

    I really like this perspective. Holding true to your values and letting them speak the loudest for your business feels like something that's becoming increasingly rare.

    One thing that has really resonated with me is the idea that explaining how your business does things differently isn't criticizing your competitors, it's educating your customers. Once they understand what to look for, the right customers tend to find you.

    I've struggled with this in my profession for years. An oversaturated market and too many poor designs have made people skeptical of the industry as a whole. That's one of the reasons I started writing blog articles to help homeowners understand what to look for when hiring a residential designer.

    My hope is that if it helps even one person make a more informed decision, it's worth the effort. I'd much rather be known for quality, trust, and doing an exceptional job than for being the lowest price.