It’s every construction company’s worst nightmare: you’ve got their interest and you’re closing on a sale, only to be told they’ve found a better price elsewhere.

You’ve just been undercut by one of your competitors – not a nice feeling, is it?

However, you can stop it happening again in future.

In this blog post, I’m going to outline five steps construction companies can take to eliminate being undercut by competitors.

Step 1: Identify threats early on

Of course, the main focus still needs to be on your business rather than what your competitors are doing, but it’s worth keeping an eye on them every so often. If a lead or prospect has told you they’ve gotten a better deal elsewhere, ask them where from.

Particularly look out for companies offering a cheaper service by using lesser quality materials, or are offering a more stripped-down package.

Remember, just because another company is doing it cheaper than you, doesn’t mean that they’re necessarily better. They may be weaker than you in other areas.

Step 2: Analyse your total costs

This is the part where you have to be really analytic. Objectively compare your competitor’s services or materials with what you’re offering, work out where they’re saving money, and whether or not they’re actually at an advantage over you.

Look at how that advantage could possibly translate into your own prices, and whether it’s a sensible move to make a change or stick with your current materials/service.

Step 3: Explore your options

Your next step is to think of all the possible aspects that will affect your final decision. For instance, is your competitor offering exactly the same services as you, or are they specialising in other areas? What are your long-term goals – do you want to branch out in other areas?

Not forgetting the most important element; your customers. Is your current service in-line with their needs, and will offering a lower price for the same service be sustainable for your business in the long-term?

If you do decide to stick with your current prices/service, pay close attention to the next step.

Step 4: Emphasise value

One of the best strategies you can try when you’re in danger of being undercut is to shift the focus away from cost and onto value.

It’s true that your customers may look at overall cost as the very bottom line, but try to draw their attention to the value you’re offering over your competitors, instead. This is your Unique Value Propositon (UVP). In other words, what are you offering that they’re not?

Whatever the price of the service you’re offering, you need to stand out as delivering great value and usefulness rather than just keeping the focus on cost.

The best way to do this is by using your website and blog to answer your customers’ questions, address their challenges and develop trust early on – one of the key elements of inbound marketing.

Step 5: Be the best

It’s true that in the construction industry, your reputation often precedes you, so it’s important that you continue to build your company’s good name by employing the best workers, communicating well and carrying out work to the highest level of professionalism, every time.

Remember, companies that are cutting costs may not be able to deliver as well as you can, and thanks to the internet nothing is secret anymore.


Want to avoid being undercut by your competitors? Unfortunately, when another company offers one of your leads the same service for less by using cheaper materials, there’s not much you can do about it.

But you can stop it happening again in future. Follow the above five steps construction companies can take to eliminate being undercut by competitors, and soon it’ll be a thing of the past.

Remember, identify threats early on, analyse your total costs and explore your options to see if there’s anywhere you can make savings. Put the emphasis on value, and finally, don’t stop providing the best possible service in your industry.

Have you recently been undercut by a competitor?

Stargazer helps construction companies generate more leads and clients via their website. If you are looking of ways to connect and reach more customers why not talk to us today or read the guide below.

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