There’s never a shortage of companies willing to undercut their competitors, but that doesn’t make it a good idea.

Competing mostly on price is a poor marketing decision because it discourages customer loyalty, makes it difficult to differentiate a company from other industry players, and forces a race to the bottom in terms of pricing and profits. The lower revenue and profit margins that result from this decision leave a company more vulnerable to market fluctuations and business mistakes. Rather than making a low price the sole priority, it’s critical to focus on value because that’s what creates a long-term return on investment that drives profitability and stability.

Focus on Quality of Workmanship and Materials

Everything from the language used on a company’s website and print materials to how sales staff speak to potential customers should emphasize the quality of the finished work, rather than simply offering the lowest cost option.

Being the cheapest in town works for some giant retail companies, like Walmart, because they buy products in sufficient volume to secure the type of pricing that enables them to underprice competitors while remaining profitable. Roofing contractors, on the other hand, primarily sell a service that happens to include products. A critical component of that service is the labor, which can mean the difference between a high-quality roof that lasts for decades versus a roof that needs to be replaced in a few years.

Commercial building owners generally want to avoid the kind of disruption to their business (or the businesses of their tenants) that construction tends to cause, so being able to do the job done correctly the first time is a significant selling point—not to mention a less costly proposition. By communicating the true value of the service provided and its impact on a customer’s business, a company will be better positioned to stand out in a competitive market and land more jobs at a higher profit margin.

Demonstrate Skills, Knowledge and Expertise

Customers hire a roofing contractor because they need a roof that is well-built and appropriate for their building, will last a reasonable length of time, and can be completed within their budget and timeline. This requires a competent contractor that is up to date on today’s construction technology, methods and materials.

There are a few ways to demonstrate the skills, knowledge and expertise of a company and its key personnel.

• Develop and publish original articles, case studies and research.
• Speak at industry events, and on television, radio and podcasts. These should be made available to prospective customers in a digital format.
• Publish original videos discussing roofing topics, which are then posted to the company website, as well as social media sites such as YouTube, LinkedIn and Facebook.

Provide Social Proof

People are naturally skeptical of things they’re unfamiliar with, and this includes companies they haven’t worked with before. It is possible—and in fact, relatively simple—to overcome this biologically hardwired response by providing what’s known as social proof. In a business environment, social proof is simply evidence that a company is reliable, competent and trustworthy.

A company can provide this evidence by showing they are trusted both by previous customers and industry peers, utilizing channels such as:

• board of director or advisory positions within prominent industry, business and nonprofit organizations;
• articles featuring, citing, or published by key staff members in prominent industry publications, as well as speaking at industry events or in the local media; and
• reviews on trusted third-party platforms. Reviews on Google My Business and Facebook should be focused on the company, but can mention specific staff members, while reviews on LinkedIn should be focused on the individual, but can mention the company.