Competitor Undercutting Your Prices by 30%: Your Response
Customer says 'X Plumbing quoted £600 less.' The exact scripts for keeping the sale without dropping your price.
You've quoted £2,200 for a bathroom refit. Customer calls: "ABC Plumbing quoted £1,600 for the same job. Can you match it?"
Your first instinct is panic. Drop the price or lose the job.
But here's the truth: cheap competitors aren't your competition. They're cutting corners you won't. Here's how to win without racing to the bottom.
Stack even more demand by pairing this with Local SEO for Trade Businesses 2026, How to Get Your First 10 Customers, and Customer Review Management Playbook 2026.
Why You Can't Match Cheap Competitors
Before you even think about lowering your price, understand why they're cheaper:
1. They're Cutting Corners on Materials
Cheap fittings, budget pipes, no-name brands. Saves £300 upfront, costs £2,000 in repairs within 3 years.
2. They're Inexperienced
New trader pricing below market to get work. Doesn't know real costs yet. Will either go bust or raise prices once they figure it out.
3. They Don't Have Proper Insurance
£2,000/year in insurance saved = £2,000 lower quotes. Until something goes wrong and customer has no recourse.
4. They're Working Cash-in-Hand
No VAT, no tax. Illegal. Saves 20% immediately. Customer gets no warranty, no comeback, no protection.
5. They've Quoted for Less Work
Customer thinks it's "the same job." It's not. They've excluded things you included. Customer finds out halfway through.
The Reality: If you match their price, you're either working for free or cutting the same corners. Neither is sustainable.
The Response Scripts
Script 1: The Comparison Question
Customer says:
"Your quote is £600 more than ABC Plumbing. Can you match their price?"
Your response:
"I can't match that price without cutting corners I'm not willing to cut. Let me ask - did their quote include [list specific items from your quote: waste removal, materials grade, warranty length, specific prep work]?"
Why it works: Makes customer realize they're not comparing like-for-like. 70% of the time, cheap quote excluded things yours includes.
Common Missing Items in Cheap Quotes
- Waste removal and disposal: £100-200 saving for competitor, headache for customer
- Materials grade: "Taps included" (doesn't specify £40 taps vs £120 taps)
- Prep work: "Assumes walls are level" (they never are)
- Post-job cleanup: Customer expected clean bathroom, got building site
- Warranty period: 12 months vs your 24 months
- Emergency callout coverage: Your price includes 6-month priority service
Script 2: The Insurance Question
Your response:
"Before you decide, ask them: Are you fully insured with public liability and professional indemnity? Can I see your certificates? If something goes wrong, am I protected?"
"My price includes £5 million public liability coverage. If I damage your property or someone gets hurt, you're protected. Not all traders carry this, and it's expensive to maintain. But it's non-negotiable for me."
Why it works: Plants doubt about cheap quote. Customer hasn't verified insurance. Now they're worried.
Script 3: The Experience Justification
Your response:
"I've been doing this for [X years]. I've seen what happens when jobs are rushed or corners are cut. You're not paying for the cheapest option. You're paying for it to be done right the first time, with proper materials, and backed by a real warranty."
"The cheaper quote might save you £600 today. But if it needs redoing in 18 months, you'll have spent £3,200 total instead of my £2,200 once. Your call."
Why it works: Reframes decision from "cheapest now" to "total cost over time."
Script 4: The Materials Breakdown
Your response:
"Let me show you exactly what you're getting for my price. I only use [specific brands/grades]. This tap alone is £180 trade. If they quoted £600 less, they're using £40 taps. They'll look fine for 6 months. Then they'll leak, corrode, or break."
"You can ask them to itemize their quote with specific materials. If they won't, that's your answer about what you're getting."
Why it works: Educates customer on quality difference. Makes them ask competitor uncomfortable questions.
When to Walk Away
Not every price objection is worth fighting. Here's when to let them go:
Red Flag 1: "Just Match Their Price"
Customer won't listen to value explanation. Only cares about price. These customers will complain about everything regardless.
Red Flag 2: Shopping Multiple Quotes to Pit You Against Each Other
"Well, Y quoted £1,800, can you beat that? Oh, and Z quoted £1,650..." They're auction-shopping. You'll never win.
Red Flag 3: Won't Accept Quality Difference Explanation
You've explained insurance, materials, warranty. They don't care. They want cheap. Let the cheap competitor deal with them.
The Walk-Away Script
"I understand you want to keep costs down. If their quote works better for your budget, I'd go with them. My price reflects the quality and service I provide, and I can't reduce that without compromising the job. If it doesn't work out with them, I'm happy to help."
Result: 30% will call you back within 2 weeks when cheap quote falls apart or job goes wrong.
Customer Education Tactics
Most customers don't understand what they're paying for. Your job is to educate them:
Comparison Chart Technique
| Item | Your Quote | Budget Quote |
|---|---|---|
| Public Liability Insurance | £5M coverage ✓ | Ask to verify |
| Materials Grade | [Brand names] ✓ | Unspecified |
| Warranty Period | 24 months ✓ | Unknown |
| Waste Removal | Included ✓ | Not listed |
| Years Experience | [X years] ✓ | Ask them |
| Total Price | £2,200 | £1,600 |
Send this to customer. Makes comparison concrete. Shifts burden to cheap competitor to justify what's missing.
Positioning Premium Pricing
Premium pricing isn't a disadvantage. It's a filter for good customers.
What Premium Pricing Signals
- Confidence: You know you're worth it
- Quality: You're not the cheapest because you're not using cheap materials
- Stability: You're not desperate for work
- Selectivity: You choose customers who value quality
The Premium Positioning Script
"I'm not the cheapest option in [city]. I'm the option for people who want it done right, with proper materials, proper insurance, and a proper warranty. If that's important to you, my quote stands. If cheap is more important than quality, I'm not the right fit."
The Economics of Premium Pricing
Real Numbers: Bristol Electrician
Competing on price: 12 quotes/month, 8 converted at avg £800 = £6,400 revenue
20% profit margin after discounts: £1,280/month profit
Premium pricing (no discounts): 12 quotes/month, 5 converted at avg £1,200 = £6,000 revenue
40% profit margin (no discounts, better customers): £2,400/month profit
Result: £1,120 more profit per month with 3 fewer jobs. Less work, more money, better customers.
The Bottom Line
Competitors undercutting you by 30% aren't competing on the same terms.
They're either:
- Cutting corners you refuse to cut
- Inexperienced and pricing wrong (they'll learn or go bust)
- Working illegally (cash jobs, no insurance, no tax)
- Quoting for less scope than you
Your job isn't to match their price. It's to educate the customer on why your price is fair.
Use the comparison questions. Make them verify insurance, materials, and scope with the cheap quote. Position yourself as the professional choice, not the desperate-for-work choice.
Customers who choose you based on value become loyal clients. Customers who choose you based on price will leave you for the next cheapest option.
Professional Quotes That Justify Your Price
Toolfy's detailed quotes show customers exactly what they're paying for. Itemized materials, insurance coverage, warranty terms - all in one professional document that sets you apart from cheap competitors.
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