As tempting as it can be to run a questionable organization, you can compete legitimately.
Competing with unsophisticated contractors has always been an issue and every time the economy tightens it gets to be even more of one. The trunk-slammers, fly-by-nighters, station-wagon warriors and pick-up truck bandits have always been here and always will be. After 27 years of consulting to contractors, I have seen all kinds of strategies to deal with them. From licensing laws to consumer education, most national efforts fail. Why? Well, it is very difficult if not impossible to legislate economics. Contracting is a straightforward, low-capital business to launch. Frankly, many of the contractors who complain about unsophisticated competition started out as just that, but as they stabilized, so did their practices. As tempting as it can be to run a questionable organization, you can compete legitimately. So here are some thoughts on how to beat unsophisticated contractors.
The small illegal contractor can only do so much and take so much market share. You must work hard to differentiate your company from the cheap guys. Do you tell a good company story? Do you utilize a professional presentation packet? Do you take time to make an educational presentation to your customers, or do your merely drop an estimate in the mail like a stealth bomber on a hurry-up mission over Baghdad? Be professional and seek customers who want professionals.