# rate cuts, low ballers, cheap customers, hacks and other nonsense



## jerad (Oct 27, 2009)

:furious:

before i go any futher i'd like to say yes it is DEAD. and yes i have CABIN FEVER.

ok here goes.
last year turned into a good year after 6 months of being slow in the middle of the year. since Christmas it has been slow. then the week of the pumper show i was slammed 12 hours a day for thee days. even up till the last 15 min before i had to make a 4 hour drive to the airport wednesday night for a redeye.
i came home and for mon and tues. i was very busy. then it trickeld into nothing. and it still is. or shall i say. things are bothering me more then the usual right now.
cut rates etc.
other co. dropping there rates. who is that helping? i tell you no one. not one person. for the moment it helps them out. but eventually it is unsustainable and you will be a dodo bird. but in the mean time it hurts everyone else. and makes you look like a crook in the eyes of other potential customers. this probubly erks me more then anything else!!!
the phone has been ringing. everone who has called me in the last week is a price shopper! (we are not in a depressed area). so as the calls come in people are calling eveyone in the phone book asking for the cheapest rate. yeaterday $60 for a mainline is what i heard from a customer. she asked if i was lower. i said no. i was $$$. she said i'd have the job if i'd do it for $50. my svc call alone to her area was $75. so now you know how it has been.
there have also been a lot more people mainly plumbers that when things are slow have bought a snake trying to do drains for next to nothing. 2 weeks ago i had a customer that the guy said he called his plumbing friend and he came over for $50 and snaked his drain with no cutters on the end. it clogged a week latter. he called him back and he won't answer the phone. i guess he got his $ and ran. i did the call the guy was impressed found roots. 
the phone book:
we have advertised for 17 years in the phone book. we skipped the last 5 years for drain cleaning. the new book came out last month. so it has been out a month. in years past for drains no one really price shopped me. this time everyone so far. i'm spending big $$,$$$ this yr. too. i should have listened to my gut feeling. one thing that i should have paid attention too was the $99 guys with video. these kind of guys were not in the book last time. position plays on that as well. 5 years ago i was on page 3 in both main books. now in one book i'm on page 7 and another page 9. lost positining from not being in there for the last 5 years.

i think i have it all out now..... i'm feeling a little better now.


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## SummPlumb (Feb 19, 2010)

I don't see anything positive about lowering your price. It has negative long term consequences. The ones that want your service will pay your price.

Don't go broke working for pennies. You can sit at home and go broke.


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## OldSchool (Jan 30, 2010)

Looks like you have to diversify.... also you need to do more than just waiting for the phone to ring...... that is just being lazy.

You have to re-establish your contacts..... get hustling and make calls.


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## jerad (Oct 27, 2009)

i tried it for the last 2 days of price shoppers. never did that before and dropped my rate by 50% and still everyone thought i was ripping them off. so it doesn't matter how cheap you are there is always someone willing to do it cheaper and go broke doing it.


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## Plasticman (Oct 14, 2008)

I know the feeling pal. With all this talk in the forum about phone book ads, wait till you hear this....
The new phone book here has my freekin fax number listed by mistake. Too late now, it;s already out, so naturally when my fax line rings, the caller gets a freekin fax machine! Good ole Embarq!


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## waldrop (Dec 18, 2009)

i will not drop our rate , i tell them to call me when the cheaper uninsured guy breaks your pipe and leaves a mess in your house .then i can come over and do you a good job for a fair price. that usally makes the sell


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## jerad (Oct 27, 2009)

call the phone co. and have them change it to a reg. line. then you can get the calls or forward them to your cell.



Plasticman said:


> I know the feeling pal. With all this talk in the forum about phone book ads, wait till you hear this....
> The new phone book here has my freekin fax number listed by mistake. Too late now, it;s already out, so naturally when my fax line rings, the caller gets a freekin fax machine! Good ole Embarq!


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## jerad (Oct 27, 2009)

i only did it for 2 days to see what would happen. it is not worth the agravation.:furious:



waldrop said:


> i will not drop our rate , i tell them to call me when the cheaper uninsured guy breaks your pipe and leaves a mess in your house .then i can come over and do you a good job for a fair price. that usally makes the sell


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## UnclogNH (Mar 28, 2009)

You have to love cabin fever really helps to get the mind wondering.
All these low ball cut rates are inexperienced business owners and will FAIL. With rates that low all they will attract is CHEAP customers. People here think I'm a rip off and I'm not the most expensive. You figure at $50 a drain how do you pay for repairs and expenses employee's? You can't.
Even at $99 there's a catch.

There is a company here has Main drains for $99. I charge $200. But The drain is Only $99 if you agree to a camera inspection $275







Without inspection it's $250. $99 + $275 = $374 for this service. My service is $200 camera discounted 50% added on with rooter service that makes $300 that's $74 dollars less then them. But because customers see $99 dollars all over their ads and trucks. they think their getting a better deal and I look like the rip off.


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## PLUMBER_BILL (Oct 23, 2009)

Plasticman said:


> I know the feeling pal. With all this talk in the forum about phone book ads, wait till you hear this....
> The new phone book here has my freekin fax number listed by mistake. Too late now, it;s already out, so naturally when my fax line rings, the caller gets a freekin fax machine! Good ole Embarq!


Wrong Number Listed ??? Grounds for No Pay Yellow Page.

Can't you change fax number around so that phone would ring? If fax they would push IE: 9 to send fax?


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## Titan Plumbing (Oct 8, 2009)

How long would it take to raise prices back up by 50%?


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## RealLivePlumber (Jun 22, 2008)

Choctaw said:


> How long would it take to raise prices back up by 50%?


 Forever and a day!


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## Plumber Jim (Jun 19, 2008)

Plasticman said:


> I know the feeling pal. With all this talk in the forum about phone book ads, wait till you hear this....
> The new phone book here has my freekin fax number listed by mistake. Too late now, it;s already out, so naturally when my fax line rings, the caller gets a freekin fax machine! Good ole Embarq!


Sounds like a free ad on that one. get the ad free and then turn the fax off and try and get what you can from that number.

We have one of the larger companies here advertising they will flatrate a mainline for $99 and do a free camera and give the customer a free CO detector. I know they are planning on trying to sell sewer line replacements but it makes us who are not out to try and sell them a new sewer look like the rip offs when it's them and their shady little scam.


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## dankman (Nov 19, 2009)

I've told off plumbers selling their services too cheaply and I'd do it again.


Idiots really do make life harder for the rest of us.


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## Bollinger plumber (Apr 3, 2009)

What is really hurting the service plumbers around here right now is that even the new construction plumbers are doing service. Two of my best referrals were new construction companies who didn't have the time to mess with service but with the way things are now they are taking all they can get.
Next you have all the unemployed plumbers with a lot of time on their hands that normally would be to busy to do side jobs are doing them for extra cash because unemployment does not pay enough to match their bills. Sooner or later it is going to get better but I am afraid it is going to be later if the government doesn't get off this health reform and concentrate more on getting the economy straightened out.


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## para1 (Jun 17, 2008)

*FREE drain cleaning with each camera job- Offer ends MARCH 15*


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## njoy plumbing (May 19, 2009)

jerad said:


> :furious:
> 
> before i go any futher i'd like to say yes it is DEAD. and yes i have CABIN FEVER.
> 
> ...


 They will get what they pay for. This has happened alot over the years. U have to ride it out and try different things while this happens. Bummer.:furious:


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## jerad (Oct 27, 2009)

this guy has several trucks on the road and runs a mag on the cover of the phone book. full page ads in all the books. and has been like this for 3 years now. i know that they are more interested in digups then cleaning......


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## rainman (Feb 19, 2009)

*Sorry,But get used to it!*

In the chicagoland suburbs this price cutting started about a good year ago and is getting worse. Its all the handy dandy guys out there and also alot of union plbrs sitting home and looking for extra cash. My local rental franchise owner stated that his sewer related rental tools has doubled since last year for rental useage. if you doubt my opinion let me ask you something, How many of those price shopping soliciters ask if your licensed and insured? I have hardly ever heard anyone ask me. So there you go. Most of these lo ball guys are operating out of their 1.5 detatched house garage. If Anyone out there has qualified experienced emplyoyees, good luck with trying to keep them on. I can think of 3 suburb local papers right now that advertise mainline rodding for $69.99 buy names Ive never heard of. I hate to say it but, Times have changed.


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## jerad (Oct 27, 2009)

i have to say that i have had nightmares the last 1.5 weeks. i have not slept well. the time change doesn't help either. in one of my dreams he bought me out. LOL


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## PlungerJockey (Feb 19, 2010)

The way I see it, If you keep your rates the same your going to be broke and have to adjust your lifestyle.

If your lower your rates to complete with the hacks, You will end up BROKE and TIRED.
Take your pick.


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## Leviathan (Mar 14, 2010)

para1 said:


> *FREE drain cleaning with each camera job- Offer ends MARCH 15*


Para, I love you. In a plutonic sense, anyway. I was trying to think of how to sell the camera I had to buy, and this is it.


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## retired rooter (Dec 31, 2008)

Around here the cheepo guys run a small single blade in sewer, hit roots and pull out cable, show roots to HO then the selling starts, usually HO ends up with a new sewer


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## 422 plumber (Jul 31, 2008)

Start cold calling realtors, property manager firms, hospitals, high schools, etc. Have a little script to follow. Either ask to talk to the facilities management department or the business department and ask how you get on the approved vendor list. Have your rates, services offered and contact info on one sheet and get their fax number. Then follow up. Do one cold a day for 20 days. Keep a list, then at the end of the month, do one cold plus one follow up a day. If you do this, I bet in a year you will have solid results.


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## tungsten plumb (Apr 15, 2010)

jjbex said:


> Start cold calling realtors, property manager firms, hospitals, high schools, etc. Have a little script to follow. Either ask to talk to the facilities management department or the business department and ask how you get on the approved vendor list. Have your rates, services offered and contact info on one sheet and get their fax number. Then follow up. Do one cold a day for 20 days. Keep a list, then at the end of the month, do one cold plus one follow up a day. If you do this, I bet in a year you will have solid results.


That actually a great idea. But not everyone has thick enough skin to cold call. You gotta have rhino skin. Every no brings you closer to a yes.


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## ranman (Jan 24, 2010)

I went out on a evening service valve broken and spraying the other night. so i assess the job and call the landlord in NY and give tho quote. she says can i get a landscaper?? I tell her yes and as why she would risk here house repair to a un insured , licensed guy. i`m something goes wrong with their repair you have no legal recourse. she said thank you and do the repair.

i dont lower my price. wallmart wont lower their price for me. 
but if a job goes supper smooth i will ofter give a % discount as a surprise. people really like that. and will call me next time


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## 422 plumber (Jul 31, 2008)

tungsten plumb said:


> That actually a great idea. But not everyone has thick enough skin to cold call. You gotta have rhino skin. Every no brings you closer to a yes.


I actually made that up as I typed. I really need to do that myself.


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## tungsten plumb (Apr 15, 2010)

jjbex said:


> I actually made that up as I typed. I really need to do that myself.


:thumbup: Well that was some good quick thinking. lol


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## CSP Drain (Jun 15, 2010)

This happens in ANY industry especially in these times. If YOU offer quality service and build relationships with customers, you do not have to worry about the low ballers as much. Maybe start an email newsletter for your customers and send out monthly tips. There are ways of offering a better service for very little money. Just need to be creative. The low ballers are typically business owners who are not creative. That is why they are the cheapest.


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