The Race to the Bottom is a Race You Don't Want to Win
I see it every single week here in Brisbane. A sparky from Chermside or a plumber in Coorparoo tells me the same thing: "I lost the job because some bloke quoted $200 less than me."
My response is always the same: Good. Let him have it.
If your only strategy to get work is being the cheapest person in the phone book, you don't have a business—you have a stressful, low-paying job where you happen to own the truck. Competing on price is a trap. It leads to long hours, zero profit, and customers who will scream at you over a five-dollar discrepancy on an invoice.
In this guide, I’m going to show you why being the "affordable" option is killing your business and how you can shift your strategy to win the high-paying jobs you actually want.
The Two Types of Tradie Businesses
To understand why you need to stop competing on price, you have to look at the two ways most local businesses operate.
1. The "Cheap Guy" Approach
This business owner thinks the only way to win is to be the lowest quote. They spend their nights on lead-gen sites fighting over the same $50 repair job with ten other blokes.The Result: They are constantly busy but never have any money in the bank. They can’t afford to hire decent staff, so they do all the grunt work themselves. Because they’re rushing to make the numbers work, the quality of the job drops, leading to bad reviews and more stress.
2. The "Premium Professional" Approach
This business owner understands that people in suburbs like Ascot, Paddington, or Bulimba aren't looking for the cheapest price—they’re looking for the best result. They want someone who shows up on time, looks professional, and does the job right the first time so they don't have to think about it again.The Result: They charge 20-30% more than the competition. They do fewer jobs but make more profit. They have the budget to invest in a professional brand, which makes them win better jobs without having to beg for work.
Why Being the Cheapest is Actually Dangerous
When you drop your price to win a job, you aren't just losing a bit of profit. You are actively damaging your business in three ways:
It Attracts the Worst Customers
Have you noticed that the customers who haggle over every cent are usually the ones who are the hardest to please? Cheap customers don't value your expertise; they value their money. They will call you at 9 PM on a Sunday to complain about a minor detail. High-paying customers, on the other hand, value their time. They will pay a premium if it means they don't have to deal with headaches.It Kills Your Cash Flow
If you’re barely making a margin on your materials and labour, one mistake or one delayed payment from a builder can sink you. You need profit to act as a buffer. Without it, you’re one broken-down van away from insolvency.You Can't Scale
You can't hire a great team if you can't pay them well. If you’re the cheapest in town, you’ll always be stuck on the tools because you can't afford to pay someone else to do the work while you focus on growing the business.How to Charge More (And Still Get the Job)
You might be thinking, "That sounds great, but if I raise my prices tomorrow, the phone will stop ringing."
That’s only true if you haven't changed the way people see your business. If you look like every other tradie, people will compare you on price. If you look like a specialist, they compare you on value.
1. Stop Buying Garbage Leads
Most tradies get stuck in the price trap because they rely on third-party lead websites. These sites are designed to make you compete on price. When a homeowner posts a job and four blokes call them within ten minutes, the homeowner immediately thinks, "Right, who’s the cheapest?"Instead of paying for the privilege of fighting for scraps, you need to own your local market. This means having your own presence where customers find you first. When someone finds you directly, they aren't looking at four other quotes simultaneously. You’ve already won the first hurdle: trust.
2. Fix Your First Impression
Before a customer even calls you, they’ve likely looked you up. What do they see?A Facebook page that hasn't been updated since 2019? A website that looks like it was built by your nephew in high school? Three-star reviews from angry customers?
If you want to charge premium prices, you have to look premium. This doesn't mean you need a flashy logo with gold foil. It means you need a professional website that works on phones, shows off your best work, and clearly explains why you’re better than the cheap guy down the road. If your current website isn't making phones ring, it’s because it’s not giving people a reason to trust you over the competition.
3. Focus on the Outcome, Not the Task
Don't sell "fixing a leak." Sell "peace of mind that your kitchen won't flood while you're at work."Don't sell "mowing the lawn." Sell "the best-looking house on the street without lifting a finger."
When you focus on the outcome, the price becomes secondary to the result. We’ve seen this work for everyone from electricians to landscapers. In fact, we’ve helped landscapers book $50k projects simply by changing who they talk to and how they present their work. They stopped being the "mowing guys" and became the "outdoor lifestyle experts."
The Reality of the Brisbane Market
Let’s be honest about the Brisbane market. We have a massive influx of people moving here, and everyone is looking for reliable trades. But there’s also a lot of competition.
If you’re a builder in North Lakes or a roofer in Logan, you are competing with hundreds of others. If you try to be the cheapest, you will eventually be beaten by someone younger, hungrier, and more willing to work for nothing.
Your advantage isn't being cheap. Your advantage is being local, reliable, and professional.
What Should You Do First?
If you want to stop the "race to the bottom," here is your 3-step action plan:
1. Review Your Pricing Today: Calculate your actual overheads. Most tradies forget to factor in things like insurance, fuel, tool replacement, and their own time spent quoting. You’ll likely find you’re making much less than you think. 2. Audit Your Online Presence: Search for your business name. If you were a customer, would you hire you? If you don't look like a $100/hr+ professional, you can't charge like one. 3. Identify Your Ideal Job: Stop taking every job that comes your way. Decide what work is most profitable and focus all your energy on getting more of that*.
Is This a Quick Fix?
No. You can't just double your prices tomorrow and expect everything to change. It takes time to build a brand that commands respect. However, I’ve seen Brisbane businesses turn this around in as little as 3 to 6 months.
It starts with a decision: Do you want to be the bloke who’s always stressed about money, or do you want to be the business owner who’s booked out weeks in advance with high-quality work?
How Local Marketing Group Helps
We don't care about "brand awareness" or "engagement." We care about your phone ringing with customers who are ready to pay what you’re worth. We work with Brisbane tradies to help them stop chasing cheap leads and start building a business that actually makes money.
If you're ready to stop competing on price and start winning better jobs, let's have a chat. We’ll look at your business, see where you’re losing money, and show you how to fix it.
Ready to grow? Contact Local Marketing Group today.