About a dozen years ago it was popular for painting contractors to complain about “station wagon bandits”—unlicensed, uninsured, and low priced contractors. In the ensuing years the names have changed, but complaints haven’t. Today the complaints are directed at “illegals”.
The problem really isn’t with station wagon bandits or illegals. The problem lies with the contractors who find themselves competing with these types.
If you are competing on price you are in a losing situation. There will always be hacks who will beat your price. And there will always be customers who are willing to hire them. No amount of licensing or complaining will change this fact.
The real solution is to quit competing on price. If you compete on value other issues become more important than price. When you sell value issues such as insurance, certifications, job specifications, and much more take precedence over price.
Contractors tend to worry about price more than consumers. While consumers certainly don’t want to pay more than is necessary, they also want to receive the best value for their money.
If you want to quit worrying about SWBs, illegals, or whomever becomes the scapegoat de jour, focus on selling value. Focus on offering value that the SWB can’t offer. When you do this, low priced hacks will become less and less of a concern. When you do this, you may begin to see the SWB for what he truly is—a minor annoyance who really has no long-term impact on the professional contractor.
© BEP Enterprises Incorporated 2008
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