Competition with Low Prices

[mafsu]

I understand the point of getting your foot in the door, and the allure of a large fleet. At what point do you draw the line on price? $20 $10

Once you starting selling yourself cheap to a customer they will always expect it. There are other ways to get business besides having the lowest price.

As to the Walmart analogy in another post there are a lot more retailers selling than just walmart. They stay in business without selling at the walmart price. Another lesson in Business 101 is "don't give away the store".

[scratchy]

A+++ I have a solution for you. Tell the point person that you aren't looking to push out the current WSR repair guy but are willing to be a substitute for the times when he can't make it due to being sick, vacation or whatever.
All you have to do is be there when the door opens and you will gain more and more momentum. I have gained MANY business accounts because the last guy was a no show and the person in charge got really bent out of shape over it. Price isn't as much of an issue as dependability.

[GP2]

Our company doesn't play the market dumping low ball game, we leave that to the parking lot pirates. We're probably the most expensive repair company in the city, and it works because we also have the highest standards and results, something we've become renowned for. We may have less volume, but we make significantly more per car, and get to work on some pretty impressive vehicles. That said, if I were offered an account of 3000 vehicles, I'd work for free for 2 weeks to show my stuff. If the manager liked my work I'd get a noncompete contract drawn up so I could be their repair tech for 1 year, MATCHING the last guys price.

We need to educate the consumer. They have to be clear on what a skilled technician is, and isn't, and more importantly what they're getting for their money. Low balling hurts EVERYONE in the long run. The consumer eventually gets poorer and poorer work. $30,20,15,10 and then your repair career goes from full time, to part time, to weekends, and then before you know it you'll be buying resins off ebay that were made in Korea, and so on...

[Glasseye]

A+++WR
A 3000 vehicle fleet is certainly a good contract to have and there has been some good advice on the posts under this thread. My advice to you would be to learn from this first approach. Do your research on the customer, it sounded as if you were suprised when the customer said you were way off the going rate, prior research would have given you that info. Sell yourself and your standard of service before you even mention price and then leave room for negotiation. Above all don't give up, keep knocking.