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Terrance said:
We are under attack from all sides. I think the comparison to the automobile repair industry is very interesting. I remember when the dealers were very independent it was my way or the highway when it came to repairs and service. Now they are in competition with the local jiffy lube I can get my oil changed at the Ford Dealership for the same amount of money as any of the local quick lubes anyone out there who thinks that someone can't deliver quality service at low prices THEY are living in dream world. Why I should call a Flate Rate plumber who charges xxx.00 to install a 40 gallon electric water heater when Sears will install the same heater for xxx.00. The war in on you can either admit the enemy is at the gates or go the way of the dinosaur the choice is yours.

Don't fret, Terrance. It's not the end of the world.

You're correct in observing that the Market will decide what price is right. Is it the lowest price or is it the highest price? How much lower can you go with your pricing in order to compete? Can you make a living at that level? Can you support your industry? Can you train new people? If Sears or anyone else corners the Market so that you can't compete, go to work for them.

Oh, you say, "I can't lower my standards in order to punch their clock." Well, then, there must be a difference between you and them, right? If the Market wants the difference, the Market will pay for the difference. Otherwise, just go to work for the "big guys."

Contractors who are charging lowest bottom feeder rates are doing it at the expense of our profession. If you can't afford to hire and train an apprentice, participate in political battles ( such as un-fair utility competition ) etc. then perhaps there's not enough money in your coffers.

I'll leave that moral decision up to you.

Perhaps the following principles can clarify some thinking:

Customers deserve to know their choices.
Customers deserve to know what their choices will cost them.
Customers deserve a good warranty.
Customers deserve a long lasting relationship.
Customers deserve a good value for the dollar they spend.
Value is determined by the parties of the transaction.
Contractors deserve a fair income.
Employees deserve a fair income.
Businesses should invest in their profession and their community.
Overhead is a cost.
Price - cost = profit.
Businesses deserve a profit.

Respectfully,

Randall Hilton
The Plumbing Professional: Quality doesn't cost . . . it pays!
"Plumbers Protect The Health Of The World."

Randall Hilton - [Email] | [Website]

The views expressed in this article are those of the individual author and do not necessarily reflect the views of the management or staff of MasterPlumbers.com


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