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Business Philosophy: Don't Race to the Bottom

6:43
12:50
15.6K views

At 6:43 in

This "Secret" made me A LOT of money

What happens here

Transitioning from the ditch clearing, the presenter, in a studio setting, elaborates on his business philosophy. He argues against the common practice of 'racing to the bottom' by constantly underbidding competitors. He emphasizes that customers often don't want the cheapest option but seek quality and reliability. By charging a fair, higher price, contractors can afford to hire skilled labor, use superior materials, and allocate necessary resources to deliver excellent work, which in turn leads to customer satisfaction and a more robust business. He highlights that this approach enables businesses to maximize their capital and effort, ultimately serving the customer's true needs rather than just their desire for the lowest price.

Goal: The presenter delivers a core business philosophy: avoid undercutting competitors to win jobs. Instead, focus on providing high-quality service and charging appropriately to maximize resources and deliver the best possible results.

What they say

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you want your project done do you want do you want your envelope shipped overnight well the price is going to be three four five times what it is if you need 2 to 3 day service and that's going to still be more expensive if you then you want just regular delivery so people are willing to pay for Speedy Delivery it's programmed into our very bones but contractors don't take the same mind frame that UPS United States Postal Service FedEx DHL and all these other shipping companies do we just give a flat rate fee and it doesn't make a difference what it boils out to the other thing is I know I've done this before where I've given out prices and you guys have condemned me on on it and some of you guys says oh you're just screwing the state or you just ripped them off well for you maybe I ripped them off but in my point of view my bid for that pond project was $16,500 and the next bid was $33,000 I did it for half of what the next guy was willing to do it for so in that case I saved them $16,500 but I also screwed myself because it's not a race to the bottom it's not about how cheap you can do a job it's about how good you can do a job because when you go out to a customer's house you are the professional to take the burden off from the customer they have hopes and dreams and a lot of times they don't want the absolute cheapest thing there are people that will give them the absolute cheapest thing but what happens is when you are the lowball bidder and you start to cut your yourself you have to cut corners and you're not delivering on the dreams of what these customers want it's don't race to the bottom and that's what a lot of contractors do they race to the bottom they try to do it cheaper than the next guy they try to see how cheap they can possibly do it they brag about how cheap they can do it absolutely not try to be the contractor that can brag about how good you can do a job and maximize your own Capital because when you are able to get the maximum payment out of something you are able to put the maximum effort into something you are able to hire the best guys to do the job you are able to give the best get the best materials for that job but if you are the guy that brags about how cheap you can do something you can't pay your guys good you can't use the best materials and you don't have any fluff any cushion in case something happens to be able to H handle that allocate for it and to do still do the app absolute best possible work you can don't race to…

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