How Do You Deal with an Unsafe Competitor?

When a competitor consistently underbids you — and you know their safety program is “on the cheap” — what do you do?

When you are outbid by solid, competent competitors, you look at how you can raise your game so you can beat them next time. But when you are outbid by a competitor who saves money by putting employees at risk, don’t lower your game. What is your response, instead?

The law is on your side, so you could report your competitor to OSHA. Many small shops find this distasteful; it feels like tattling did when you were a kid. And it could backfire if word got out, with the unsafe shop’s managers making nuisance “fake news” retaliatory reports against your firm.

If you think this through, another solution appears. A few key elements of building a safety culture are:

  • Employees work methodically.
  • Employees are well-trained.
  • Upgraded tools are provided.
  • All tools are properly maintained.
  • Procedures are clearly and concisely written.

These factors also mean your crews efficiently do accurate work. Therein lies your answer. You have a competitive edge, and it’s a sharp one. To make that edge cut through the false economics presented by your competitor, you need to provide a clear and concise marketing message to your clientele. You must do this during the initial contact, through the bidding process, through the job completion effort, and as a follow-up after the job is completed.

That message is your customer pays for the job only once. They don’t keep paying due to shoddy work, sloppiness, schedule delays, or other things that arise from taking shortcuts. You may be tempted to compile a list of shortcuts and their costs and then say you don’t do these things. But that introduces negatives into the discussion. Instill confidence in your firm by stressing the positives.

If your every interaction with the customer is polished and professional, you will be ahead of the shortcut taking competitor. Unless your prospective client contacts are totally green, they’ve been burnt already by low-bidding firms that are ultimately very expensive. You can say whatever you want, but what you show them is what will win them over.

Some tips:

  • Ask the client to tell you about the project. Then listen — without interrupting. The mere act of listening works wonders for relationships. Clinching the sale is often more about the relationship you’re building than the price you’re quoting.
  • Remember that everyone, consciously or not, checks other people’s shoes. If your shoes are dull or scuffed, a negative message is sent. Setting up a shoe polisher at the shop is not a bad idea, and these little machines don’t cost much.
  • If you bring a copy of the NEC, bring one that is only slightly worn. Though a worn out one could indicate you use it a lot, it also says “worn out” and that’s a negative message.
  • Consider offering a copy of the NEC to a client representative who does not have one. Be sure to sign it with a personal message and your contact information right before you hand it over. If managed properly, this is a high ROI marketing measure.
  • Specifically mention that your employees are trained and qualified to do accurate work. They work methodically and efficiently, and they don’t take shortcuts that could compromise safety or the quality of the work.
  • Periodically repeat some bit or another of the previous message, throughout the engagement with this client or customer. Mentioning one bit will cause their mental recorder to replay the whole message, so you get the benefit of repeating it without the tedium of doing so.
  • Walk the talk. This solution works only if your people actually are methodical workers and your safety program is solid. Don’t assume; continually monitor. If your workers are showcasing these things while on your client’s site, your “safety on the cheap” competitor is unlikely to ever be considered by them.

About the Author

Mark Lamendola

Mark Lamendola

Mark is an expert in maintenance management, having racked up an impressive track record during his time working in the field. He also has extensive knowledge of, and practical expertise with, the National Electrical Code (NEC). Through his consulting business, he provides articles and training materials on electrical topics, specializing in making difficult subjects easy to understand and focusing on the practical aspects of electrical work.

Prior to starting his own business, Mark served as the Technical Editor on EC&M for six years, worked three years in nuclear maintenance, six years as a contract project engineer/project manager, three years as a systems engineer, and three years in plant maintenance management.

Mark earned an AAS degree from Rock Valley College, a BSEET from Columbia Pacific University, and an MBA from Lake Erie College. He’s also completed several related certifications over the years and even was formerly licensed as a Master Electrician. He is a Senior Member of the IEEE and past Chairman of the Kansas City Chapters of both the IEEE and the IEEE Computer Society. Mark also served as the program director for, a board member of, and webmaster of, the Midwest Chapter of the 7x24 Exchange. He has also held memberships with the following organizations: NETA, NFPA, International Association of Webmasters, and Institute of Certified Professional Managers.

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