[Tim Rose]

I've written a letter to the owner of a commercial building offering w/c services when they open it up for the first time.   I've ended the letter by saying that I'm keen to get into [that area] and therefore I would quote them 15% less than any other w/c company that quotes for them. I think that's fair enough, but I also added 'subject to written proof' (of the quote).

Was that a bit naff/rude/bullying?

I havent posted it yet.

[LWC]

no i dont think so, competitive, all i would say is dont undercut yourself, someone else might want that contract and price it cheap, and then youve gotta go 15% under his cheap quote

[Walter Pole]

Personally I wouldn't use the word 'proof' .... thats what the police look for.  'Verification' is bit softer and sounds quite professional, IMHO

Mark

[Ian_Giles]

It's not a bad idea, certainly an aggressive marketing method.
I don't think I would use it though, I think there is too much risk of coming a cropper. If this is a large 'area' you could end out pricing against one of the larger, national companies who could well be pricing peanuts to get in there themselves, then you are left having to go 15% lower still.

If you are only talking about a price of 20 quid then it wouldn't matter if you make a bit of a loss to get a shoe in the door, but that changes the more expensive the job gets.

It could also smack somewhat of desperation too, you'll do anything to get the job.

If I priced for a contract and found that I was the cheapest of several, I'd be gutted, ditto if I was the most expensive (wouldn't get the job of course) but if my price was in the middle somewhere I'd be happy.
And then my presentation of quote, promise of quality and so on would add to my competitiveness.
If I lost out to the cheapest quote, would I be bothered?
Not really, I don't want customers that simply go for the cheapest quote come what may, because in 12 months time that job will be back out to tender and you will have to price all over again.

good luck to you if you give it a go though, and I agree with Mark, the word - verification - would be much better than proof.

Ian

[Tim Rose]

Hmm, maybe i should leave the last part out altogether, and if I was lucky enough to be asked to quote perhaps play it by ear and close the 'sale' during a face to face conversation.

[Andy@w.c.s]

I to think your letter sounds a little desperate

Unfortunately people are very lazy and given the choice of making a phone call or not  they usually don't
if i were you I would keep it as a standard letter of introduction and put something in it to say that you will be in contact to make an appointment and  in a few days to come and give them a price as you are in the area on Tuesday pricing one down the road,
 just my thoughts
but you would be in the driving seat
1 with the letter
2with the follow up call
3 with the push with in the call to say that you are in the area and it would cost them nothing for a quote
go for it you have nothing to lose

[[GQC] Tim]

I think it's not very smart, what if another window cleaning company charges much less an hour then you? Then you still need to be 15% under their price.

And I don't really like the concept of undercutting other windowcleaners.

And yea, it sounds really desperate aswell.

[Tim Rose]

Ian and others, good feedback; I'm going to modify the last line about pricing.  I think that saying something about being 'competitive' could be the answer.

Luckily I haven't subjected you to the entire letter, GCHQ!  as for undercutting... BUSINESS IS BUSINESS!

[sherco]

Trouble is with this type of letter offering 15% less it start a price war, everybody getting cheaper and nobody earning money. You would get the job find out you cant earn money doing it ,then you would  rush the job or no do properly. Don't forget you go to work to earn a living and a bit of profit, no to buy a round of drinks at the end of the day.

[Tim Rose]

Well, unless you are prepared to have a loss leader, I agree that you wouldn't want to price such that it actually cost you money.

But if you DID want to achieve another goal, APART from getting the £££'s in, it might be a successful strategy.

So, let's say you wanted to break into commercial work, AND/OR a geographical area, you might be prepared to take a few hits below the waterline as it were, to get a toe-hold.

We have all seen new wfp/thermopure vans etc on the roads now, and if that doesn't drive prices down, then I don't know what doesn't. 

I think this comes down to what you are trying to achieve.  Means to and end and all that.

[tonylee]

.. BUSINESS IS BUSINESS!

hi rosy.
business is business. however at what cost.
surely the best business is fair to you both not offering 15% lower than a figure that is not known.
your experience will give you a figure of what you need or want then its down to you to sell it
thought you were better at this
tony

[Tim Rose]

Tony,

I think you're right with this post. In my defence ( :) the 15% I plucked out of the air, and was always open to discussion!

[tonylee]

keep doing your posts, they are always entertaining
tony

[Bobs Window Cleaning]

Undercutting.........business is business.....Dont think so buddy

Commercial and undercutting just dont go together.....but hey good luck.


Bob

[Pj]

It probably does draw it's own interest, but I don't do discounts.

If I can discount once I can do it again.

I don't need to

[Tim Rose]

Hey, 'buddies'.  LOL - that's such an archaic term! 

Seriously though, mates/chums/pals/sparring partner/'oppo' (what WAS that one about?!), if the altenrative is to aim to equal your competitor's price, then how do you BEAT them to get the job?

Drop your pants?

Maybe some of you try to INCREASE by %15 just to make sure there's a good chance of NOT getting any work, working on the (dislodged) theory that if you only get a few muppets taking the bait then it's ok as you'll be laughing all the way to the bank (while in the process get a reputation for being a rip-off merchant.

[tonylee]

rosy rosy rosy,
people buy people. if you can get face to face with the buyer you can strike up a rapore. buyers will often tell you who you are up against and at what price.
there job is to allocate the job at the best price or value for money, they do not want to allocate to someone that they feel has priced it too cheaply that it can not be done. worse still the contractor wins too cheaply and is then unreliable.
do not offer to take your pants down perhaps offer to fix your price for 24 or 36 months (they like this)
your takin the mick this morning arnt you fella
tony

[Tim Rose]

Tony, I appreciate what you're saying.  I think it's a mixture of both what we're talking about - people buying people/with their eyes/buy on buy price, buy twice etc., but these handy phrase-book catchphrases are only part fo the story, maybe even a big part than the 'I'll match any price' merchants of which I would not have considered myself before thining about getting into a small amount of loacl, convenient to get to commerical work.

And no, I'm not going to either drop my trousers or take the mick this morning.

Ok, buddy?    

Rosy

[tonylee]

of course, bud.

[Tim Rose]

I prefer 'bod'.