5 Ways to Compete Against Bigger Contractors… Without Lowering Your Rates

So, you’re not a national chain with a fleet of sparkling, new vans and a marketing budget the size California’s GDP. You don’t have a 24/7 call center or TV ads running during prime time. You’re a local shop with a small staff of experienced techs who do great work for your satisfied customers. Can you compete with the big companies out there?

Short answer: Absolutely! But it matters how you go about it.

Small businesses of all stripes are the backbone of this country’s economy, and small-to mid-sized plumbing and HVAC shops are experiencing an upswing. They’re finding success in today’s economy by focusing on what they do best. It’s not about beating the mega-companies at their own game. It’s about playing your own game, and crushing it.

Here’s how they’re doing it.

Use your size to your advantage

Bigger isn’t always better. Because you’re smaller than a national company, you have greater flexibility. You don’t have corporate red tape to worry about, no chain-of-command approvals for sales or promotions. You also may be able to get the job done faster with more customization because your people in the field are empowered to make decisions on the fly.

Focus on delivering personal service

With a smaller business, you can deliver more personal service. Your customers won’t get routed through a national call center. They can talk to you, the business owner, or someone on your core team. One employee worth his or her weight in gold: a highly knowledgeable person answering the phone and scheduling service calls.

Let your customers know you’re not simply running tickets and churning out service calls — you’re delivering personal service and building relationships.

If possible, have the same tech show up every time a customer needs a visit — seasonal cleanings of AC units, running a line through a main drain yearly to prevent root build-up and other yearly maintenance, in addition to service calls for other issues. That kind of relationship-building leads customers to stop thinking: “I need to call a plumber or HVAC tech,” and start thinking, “I need to call Carl.” It creates trust, with homeowners knowing they’re in proven, reliable, skilled hands.

Build a great reputation locally

Own your neighborhood, your zip code, your community. You may not have an unlimited marketing budget, but one highly effective way to spend those precious dollars is by printing up a card that can be delivered door-to-door or mailed. Highlight that you’re the go-to for service, not a faceless business, but a neighbor.

Another way to build a local reputation is by asking for reviews from neighbors. And about those reviews, respond to them all of online with a personal comment.

One more tip: Be visible locally. Sponsor a Little League team. Hand out branded water bottles at a local run. Get involved in school fundraisers. It gets your name out there and shows people you care about the community as a whole, not just people who need your service.

Pick a niche

Focus on one thing and foster a reputation for being the best at it — tankless installs, yearly main drain cleaning, ductless mini-split systems, older home retrofits.

Building on that tactic, consider tying one trusted tech to each specialty. Remember the knowledgeable person handling incoming calls? They can recommend the best person on staff to do a particular job. John is our expert on mini-split installs. Phil is the guy you want to replace your old pipes with PEX. It showcases your expertise and fosters trust.

Invest in training

You may have a smaller team, but it can be an elite squad of pros. In addition to keeping current with new equipment, codes, and other things needed to get the job done, train your people in sales skills, leadership and even soft skills like communication with customers.

By playing their own game right, small-to-mid-sized businesses can win!

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