Lowballers,why are there so many in our industry | TruckMount Forums #1 Carpet Cleaning Forums

Lowballers,why are there so many in our industry

rob allen

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Jim Martin made a good point in another thread and then he asked this question. I thought it is a good one for a new topic.

QUOTE:JIm Martin :Why do you think that our industry has so many low ball companies ????

I mean we all see the 7 dollar a room guys in ads and street signs. Whole houses for 49 bucks. You don't see electricians and plumbers advertising that way. Is it because we are so called "low skill workers" in the public eye? And have industry certification companies helped to raise the bar in your opinion? Anyone want to take a stab at it?

Rob Allen.
 

Dave Rampage

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Because most of us have a high scool education at most. We are just loborers that worked for someone else and said I could do it myself and make all the money. We don't have any concept of the costs to run a business or understand marketing.

The easy thing to do is charge less than everyone else does. It just continues.

Dave
 
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Woody

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Until we realize that the "low ballers" are not our competition, we will be bothered by them. I love them. When we finish cleaning carpets or upholstery our clients comment that they have never had anyone take the time to explain step by step what they were doing. We provide a professional service for customers who want something better. Not all cleaning professionals are uneducated. Some of us prefer to enjoy the freedom that business ownership allows and make a very good living doing it. I was simply tired of the stress that my "other profession" was providing. I am very glad I am here and think everyone on this board should feel the same.

This biz is a lot of fun most days, mixed with alot of "elbow grease.


Woody
 
T

TheEyeball

There are two categories: Lowball companies, and lowball customers. I have absolutely no problem with the companies. They are not a threat to me, and provide a lot of laughs.

Lowball customers, however, are horrible. I call them bargain shoppers. They waste my time and diesel.

The companies exist because they are started by people who think carpet cleaning is going to make them a fortune, and they do it cheap hoping to make up for it in volume. Everybody and their brother thinks they can make a killing at carpet cleaning for some reason.

The customers exist because there will always be cheap people. I saw my dad get the run around for 20 years from this type of customer all the time at his window installation business. These people are the same across all spectrums of business. They don't want to pay for anything whether it's carpet cleaning or buying lunch at Arby's.
 

Scott W

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Carpet cleaning (or any cleaning business) is easy to get into. No government license or testing, inexpensive equipment is available (used or portables, etc.), no mandatory training, no store front needed, you can work from home, etc.

Anyone who is out of work, want to be their own boss or whatever can look around at the choices and decide carpet cleaning is something they can do. In the current economy, there are a lot of people who don't make enough to pay all the bills and want a side job or some who are out of work want any job.

They do not value their own services since it was so easy to get started. They charge what they think they are worth, sometimes not much above minimum wage. Or they charge what they think they need to in order tog et the work. They have no training or experience in marketing.

Scott Warrington
 
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Steve Toburen

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I hate it when my Internet Arch-Nemesis, Scotty Warrington, beats me to the draw ... because he always states what I would have said AND says it better.

I would add that there is little industry training on how to calculate the true cost of doing business so these "technicians masquerading as business owners" think they are making money even at their low-ball prices.

Steve Toburen
Director of Training
Jon-Don's Strategies for Success which coincidentally includes an entire day with Chuck Violand on Pricing for Profit!

PS I am also reminded of a transformational presentation I attended about 30 years ago by the legendary Lee Pemberton. It was called "Following the Follower" and the title says it all about our industry. This concept of slavishly setting your prices on the fear that you must be lower has never left me.

I always ask our SFS members who are struggling with charging enough for their services, "Do you respect your competitor?" The reply? "Of course not! That hack is a complete loser!" I then clinch the deal by asking, "Then why are you allowing them to be your pricing consultant for your company?" Enough said ...
 
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vernonpurcell

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Low Ballers, maybe it because for $2000 you can be a carpet cleaner, which other business can you start with this amount of money. Then you have the low ball customer, these customers are only loyal to price. but do not beat yourself up over it. They are always going to be there
 

Busy Bee

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Carpet cleaning (or any cleaning business) is easy to get into. No government license or testing, inexpensive equipment is available (used or portables, etc.), no mandatory training, no store front needed, you can work from home, etc.

Anyone who is out of work, want to be their own boss or whatever can look around at the choices and decide carpet cleaning is something they can do. In the current economy, there are a lot of people who don't make enough to pay all the bills and want a side job or some who are out of work want any job.

They do not value their own services since it was so easy to get started. They charge what they think they are worth, sometimes not much above minimum wage. Or they charge what they think they need to in order tog et the work. They have no training or experience in marketing.

Scott Warrington
I agree with you on that Scott. I said a few similar things like that on the other lowballer debate. Bill www.busybeecarpetandtilecare.com
 

Mick Ellis

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I always ask our SFS members who are struggling with charging enough for their services, "Do you respect your competitor?" The reply? "Of course not! That hack is a complete loser!" I then clinch the deal by asking, "Then why are you allowing them to be your pricing consultant for your company?" Enough said ...[/QUOTE]

Well Said Steve.

Mick :D:D:D:D
 

rob allen

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Well Said Steve.

Mick :)

Well said Mick.

Rob :)
 

Rob Lyon

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Law of Supply & Demand, if there was not a damand from the customer,there would not be LOW BALL anything. Remember, mass media has made this monster about price and telling the end user how much they can save when they do their network commercials!

Ps, Just think,Mass media tells everyone how bad the economy is,yet, they rely on Advertisers to pay their salaries!

(ONE BIG VICIOUS CIRCLE), Think about it!!
 
T

TheEyeball

so..... what everyone is telling me is that it is the industry's fault ?????

Is that what you believe busy bee.........
Are you trying to illicit a certain response out of someone? It seems like you waiting for somebody to say something. Just curious.
 

Caesar

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Well ,you have to remember the fact that many people around consider 10 dollars and hour or a lil more good wages.So they get some equipment and think wow .I can easily make another 100 bucks now and then.

But primarily these are people that do not understand there worth,etc.An just see bills that have to be paid no matter waht size the job is...Etc...

An since it is under the table money alot of times they consider themselves doing good...
 
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Busy Bee

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Yes Jim....

so..... what everyone is telling me is that it is the industry's fault ?????

Is that what you believe busy bee.........
I wouldn't say it's the INDUSTRY'S fault, but WE are the INDUSTRY because it's pretty much not regulated and some of the 'busineses" below us need to be exposed as the frauds they are. The reason the customer has a price in their head is because someone advertised it and put it their head meaning that is the price/standard, so WE the carpet cleaning industry as an INDUSTRY have to expose them as frauds like the video in my website www.busybeecarpetandtilecare.com. I'm not gonna lose jobs to some former used car salesmen that decidied to start a "business" and give all LEGITIMATE CARPET AND TILE CLEANING BUSINESS a bad name. It's unacceptable, it's ruining the carpet cleaning industry and it's starting to creep into tile cleaning. Like I said before: I'm gonna do everything I can to educate a potential customer and keep them.
 

KenRaddon

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I laugh at these posts whenever they come up.

What I mean is who made any of you in charge of what to charge. Why is a guy a "low baller" (usually meant as a duragatory term) because he charges less than you?

There is a $7 a room guy around here and he cleans better than a bunch of the TM owning high priced guys I have watched. Your price or make that his price is no indication of anything to anyone except his business model. Or lack thereof. In either case he is making more money than a lot of other guys regardless of price.

Don't get me started on bait and switch because that is not what I am talking about. I am only referring to the legit cleaner that charges what he does because of his own reasons.

Ken Raddon.
 

rob allen

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Ken I think we are mostly addressing the LowBall'ers that consist of bait and switch and low quality. Now we realize there are exceptions to the rule like you mentioned. However they are few and far in between.

And in defense I have seen some TM guys look at a room and mist in the air and move to the next room. When I confronted the guy he said it looked clean and so as long as it was wet she would think I cleaned it. I almost dropped to the floor.

So to do a job correctly, using proper equipment and chemistry has a value and a cost. 7.00 is not going to cut it IMHO. So even if they started out with good intentions, many go the switch and bait route to stay in business. Thus the cycle continues unless the company decides to progress to better equipment, better products, higher competitive pricing and much higher quality work.

Many here have made good points on both sides. Though most of us agree, that carpet cleaning in inudated with lowballers that hurt, not help our industry.

Rob Allen