What really gets me - Steve told me he had lots of contracts in place and he asked me for a price list - so he could sub some out to us.
It is now more than obvious he has used the price list to undercut us - funny thing is - it was way too cheap! We have doubled our prices (thats why we get no work I suppose) and now it seems that he is simply working at extremely low prices and not really running a business as he claims to be.
Hopefully he has just cleaned the environmental agency solar panels - the company we cleaned them for last year - changed their business name - as they couldn't pay anybody - we took 8 months to get paid - and then they asked us to clean them this year using a different company name - we told them to sling their hook
I think Steve does OK - he advertises well - using adwords - and his adwords costs should now go down as we have pulled out. His problem will be trying to "grow" the business - employing peopl - paye - vat - insurances - new vans and equipment etc etc etc - there won't be enough profit at current prices to afford all of this
I really think the Solar Panel cleaning could have been a great business to get into for many window cleaning companies - but current prices quoted are way too low to make this a viable business opportunity. Maybe it is just OK for the stand alone window cleaner?
Steve has proved this by cleaning 100,000 panels and not even hitting the VAT threshold - what his customers think when he claims to be a national company after receiving his invoices is anybodies guess.
We never knowingly try to be cheaper than our competitors - any fool can work cheaper - for me I am only interested in making profit from the business and not just a working wage. No real point in being a busy fool - not for me anyway.
Steve - Increase your prices - and your business will prosper and grow - good luck to you.