[LGSShaun]

Hello all,

I am a Building automation Graphics subcontractor for Johnson Controls and recently a company in India partnered up with Johnson that does graphics and any other tasks. They are supposedly quite a bit cheaper and I have noticed more and more American Johnson employees sending their work to them. I can't just lower my prices because the cost of living here is much more expensive. Unfortunately price is a huge selling point in this business. Anyone have any idea on how to compete with the SOBs?

[hugh009]

It is getting tougher and tougher to compete with outsourcing. I would see if you could work more in your LOCAL market.

[LGSShaun]

Originally Posted by hugh009

It is getting tougher and tougher to compete with outsourcing. I would see if you could work more in your LOCAL market.

Most of my work comes from the local market. I'm missing out on some HUGE projects though because they are being sent to India.

[malahverdian]

Try and encourage patriotism or something... are there any tax laws that benefit companies who choose not to outsource? Something I would look into.

Also the customer service quality of work and communication should be your selling points over outsourcing and dealing with middlemen, and probably minimum wage employees being assigned the tasks.

[LGSShaun]

Originally Posted by malahverdian

Try and encourage patriotism or something... are there any tax laws that benefit companies who choose not to outsource? Something I would look into.

Also the customer service quality of work and communication should be your selling points over outsourcing and dealing with middlemen, and probably minimum wage employees being assigned the tasks.

Very good points. I didn't even think of the possible tax benefit. Thank you for the ideas!

[Jerimiah]

Some great ideas indeed! Also consider the simplicity of adding more value, or even outsourcing your own jobs to qualified students and just spending time getting more business Cheers!

[LGSShaun]

Originally Posted by Jerimiah

Some great ideas indeed! Also consider the simplicity of adding more value, or even outsourcing your own jobs to qualified students and just spending time getting more business Cheers!

See, i started my business with my brother and a couple friends of mine helping part-time. Then I got enough business to add my bro and one of the friends full-time. I started them off at the rate I was paid when I worked for someone doing the same stuff. Really I should have started them off lower but any additional employees I add will be less qualified and at a lower pay grade to help with that. You live you learn I guess.

[gofrugal]

I think if you focus more on quality, customer service and trust , you can easily beat them withought lowering price. Once your customer will come to know the EFFECTIVE price , they will come back to you for sure. Lower price may attract them at first place but the people who has experience and know effective price , they will come to you.

[LGSShaun]

Originally Posted by gofrugal

I think if you focus more on quality, customer service and trust , you can easily beat them withought lowering price. Once your customer will come to know the EFFECTIVE price , they will come back to you for sure. Lower price may attract them at first place but the people who has experience and know effective price , they will come to you.

That's also a great point. I've been working on comparison pricing so they see the big picture because they do the graphics, then send them to the US for someone to have to install. Lately I've been the one to install a couple projects. Do I like it? Yes and no. I don't get to do the graphics but I get a first hand look at my competition. Anyway, install and commissioning is included in my pricing and I don't think they have grasped that quite yet.

[Monte Cristo]

I would encourage some research on the competition. You don't need to be the best, just better than them you know
And btw the cost of living is the same everywhere only the lifestyle is different.