Contractors ''Undercutting''

13spanner

I'm looking for opinions on contractors undercutting eachother. It doesn't happen much around us, and is seen as a sly game to be playing.

I've heard some people say 'tis wrong as you'd be competing with neighbours, but I'd be of the opinion ''business is business.''

Q1: Am I wrong to see it that way?
Q2: Are farmers looking for the right price, or is loyalty top of the list?
Q3: When you hear of undercutting, what do you think of it?

mikemac

My dad does contracting for silage, works for himself. Mowing, bailing wrapping, hauling it, does it all. Edit: lol, I forgot hay too
And I've asked what happens if a contractor comes in and undercuts him and takes the business?

From what I can see, loyalty matters a lot. If someone has your business for years and years and you know them locally, you're not going to go with the cheaper contractor.

Once a contractor has a fair price and consistently reliable, farmers won't be tempted, not unless if was huge undercutting. But how do you massively undercut a fair price and run a good business? Will you be around next year?

A reliable local man can charge more and get it

But I do agree with you that business is business and competition is welcome.
But reliability and a track record matters a huge deal and this will get loyalty in return

whelan1

my husband is a lorry driver he hauls machinery etc, there are guys out there giving rates that wouldnt even cover the diesel for the run, his opinion is let them at it , they will soon go out of business ... why go out to work just to be seen to be working you have to be able to cover your costs

Grecco

Undercutting is the only way many lads have of getting new customers, as whelan says many aren't even covering costs.
I change silage/slurry contractors myself last year and didnt really see any difference in the cost, what I did get was a better service with regards to coming on time, doing neat work etc so it is a good thing in a way.

Theres no point been loyal if your getting screwed

keep going

there is no benifit to anyone to be constantly jumping ship but i do think its no harm to do a bit of switching for a few jobs here and there.i have the same contractor for 15 years but every so often id get some else to do a job now because i found that bills seem a bit on the strong side.hours went up,extra 5/acre and that sort of thing.also the first question i ask now is how much not when are you coming.starting to think i might be better off having 2 or 3 contractors regularly,but will continue as i am for the mo

irishh_bob

13spanner wrote: »

I'm looking for opinions on contractors undercutting eachother. It doesn't happen much around us, and is seen as a sly game to be playing.

I've heard some people say 'tis wrong as you'd be competing with neighbours, but I'd be of the opinion ''business is business.''

Q1: Am I wrong to see it that way?
Q2: Are farmers looking for the right price, or is loyalty top of the list?
Q3: When you hear of undercutting, what do you think of it?

i think loyalty to a reliable contractor is sensible , it stands to you in the longterm , that said , im a believer in the free market , if someone needs to undercut in order to earn a share of the marketplace , thats the way it has to be , lidl and aldi undercut the likes of super value and dunnes stores when they 1st entered ireland

reilig

The experience around here is that the farmer who has a different contractor in his field year after year is the farmer that doesn't pay. Its hard for a new contractor to build up customers.

bob charles

Neighbour has had 4 different contractors in baling already this year, and he only makes a small amount of bales:rolleyes:. Once I get good service I dont shift contractor, but i will always push them on price to keep them on there toes

pat73

I keep the same contractor all the time.He is a neighbour and he has never let me down.once i ring him he finds the time to fit me in.I make alot of hay to sell and as ye all know there is a small window to get it baled and time is like gold.On the other side of me there is another neighbour who is after getting into the contractor game as well, and whose young lads used to help me to draw the hay in.Now they are older and are trying to get in to the same game as im in.There father rings up my usual customers trying to get them to take there hay saying my stuff is no good and theres is better,the usual stuff.A contractor that is loyal and is good at what he does is worth that little bit extra.the fellow that is undercutting,will he be there when u need him?.