Are cheap competitors actually your fault?

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!