Sales · How-to

When customers are getting other bids: how to compete without dropping your price

Expect it, and make it easy: give the homeowner a way to compare bids line by line, ask what matters besides price, and answer a cheaper number with a smaller scope, not a discount. Back it up with your license, insurance and recent reviews, never knock the other company, and walk away from work you wouldn’t stand behind.

By Eric Smith, founder of Outfitter AI and a former general contractor · Prices checked October 4, 2026

This guide is from Outfitter AI, which sells an AI receptionist; none of the advice depends on it.

Expect other bids, and plan for them

Homeowners are told to shop around by nearly everyone they trust. The FTC’s consumer guide says to get written estimates from several firms and not to automatically take the lowest one [1]. California’s contractor board tells seniors to get at least three bids and check references [2].

Surveys say the same. In a 2018 survey of 2,500 homeowners by Modernize, a lead-generation company, half said they prefer at least three estimates, 43% said they choose a contractor based on the price of the estimate, and 28% said they rely on reviews and ratings [3]. On the other hand, an HVAC trade magazine quoted a Nexstar Network sales coach citing a Lennox study that 55% of consumers get only one quote [4]. Both can be true: some homeowners shop hard, and many hire the first company that makes them comfortable.

So don’t take “we’re getting a few bids” personally. Treat it as information. Your job is to be the bid that is easiest to understand and easiest to trust. The contractor sales guide shows where this fits between the visit and follow-up.

Make the bids comparable, on your terms

Most homeowners can’t compare bids. One says “replace roof, $14,800” and another lists twelve line items. The lowest number wins by default because it’s the only thing they can read. Give them a way to compare that shows what’s in yours.

Hand over a one-page comparison sheet with your proposal: the questions that matter for this kind of job, with your answers filled in and blank columns for the other companies. It’s helpful, it’s honest, and it quietly moves the conversation from price to scope.

Trade	Questions on the comparison sheet
HVAC replacement	Exact equipment model numbers? Removal and disposal included? Permit pulled by whom? Duct or line-set changes included? Labor warranty length, in writing?
Roofing	Full tear-off or a layer over? Underlayment and ice barrier type? Price per sheet of rotted decking? Ventilation and flashing replaced or reused? Cleanup and magnet sweep?
Remodeling	Which items are allowances, and how much is each? Who handles design, permits and inspections? How are change orders priced? Start date and expected length?
Electrical	Is the utility coordination included? Are wall patching and painting included or excluded? Is a permit and inspection part of the price?
Lawn, cleaning, pest	What exactly happens each visit? How often? What does a skipped or rained-out visit cost? Any contract length or cancellation fee?

Example: a homeowner holds two water heater bids, $2,400 and $3,100. Walked through the sheet, the lower one turns out to skip the expansion tank, the haul-away and the permit, and it lists a one-year labor warranty against your five. You haven’t said a word about the other plumber. The homeowner found the gap themselves, which is far more convincing than anything you could claim.

Bring a blank copy to every visit. When the homeowner fills in another company’s column at their own kitchen table, the bid with the most blanks rarely wins.

Handing over the sheet: Most people I meet are getting a few prices, which makes sense. This sheet lists the questions I’d ask if I were you. My answers are filled in. When the other bids come in, check them against the same list, and if anything doesn’t line up, call me and I’ll explain the difference.

What to say when the other bid comes up

Have answers ready for the four things homeowners say most. None of them involve lowering your price on the spot.

“We’re getting other bids.”: Good, you should. Can I ask what matters most to you when you compare them, besides the price? I want to make sure my proposal answers that clearly.

“The other company was a lot cheaper.”: That’s fair to ask about. Would you be willing to show me their bid, or read me what it includes? Usually the difference is in what’s included, and I’d rather you know that either way.

“Can you match their price?”: I can’t match a number without knowing it’s the same job. What I can do is show you what changes if we take something out, like keeping the existing thermostat or reusing the gutters, so you can decide what’s worth paying for.

“We just need to think about it.”: Of course. What’s the main thing you’ll be weighing? If it’s the price, I can lay out a lower option. If it’s timing or trust, I’m happy to send references or past job photos.

Notice the pattern: agree, ask a question, offer to clarify. If price is the real gap, cut scope, not your margin. A cheaper option with less in it is a fair choice for the homeowner. A cheaper price for the same work just teaches them to ask every time. Our guide to good-better-best pricing builds that lower option in from the start.

Never bad-mouth the other company

It’s tempting when you know the other outfit cuts corners. Don’t. The homeowner hears it as a sales tactic, you might be wrong about this particular job, and in a small town it gets back to the other owner by Friday.

Talk about scope and standards instead. Explain what you do and why, and let the homeowner draw the comparison.

Instead of this

“Those guys always skip the permit.” “Their installers don’t know what they’re doing.” “That price is a bait and switch.”

Say this

“Our price includes the permit and the city inspection, so you’ll have the sign-off on file when you sell. I’d ask whether theirs does.” “I can’t speak to their crew, but here’s who would be at your house and how long they’ve been with us.”

If a homeowner asks your opinion of a specific company, a short neutral answer works: “I don’t know their work well enough to say. Here’s what I’d check on any bid.” Then point back to your comparison sheet.

Win on scope clarity

The clearest bid often wins even when it isn’t the cheapest, because the homeowner can picture the job. Write yours so a stranger could read it and know exactly what will happen.

Name the products. Brand, model or series, color. “Standard fixtures” invites a cheaper bid that uses something worse.
List exclusions in plain words. “Not included: drywall repair beyond the panel area, painting, moving furniture.” An honest exclusion looks better than a surprise later.
Show allowances as numbers. “Tile allowance: $6 per square foot” (an example) lets the homeowner spot when another bid’s allowance is too low to be real.
Spell out the process. Days on site, who’s in charge, how they’ll be updated, how the site is left each night.
Say how changes are handled. A written change order with a price before the work happens.
Put the warranty in writing, separating the manufacturer’s coverage from your labor coverage.

How to write a contractor estimate has a full template.

Bring proof, not promises

When two bids look alike, homeowners pick the company that feels safer. Make that easy by putting proof in their hands before they ask.

Your license number, printed on the proposal. California’s board tells homeowners to get the license number and verify it online or by phone [2], and other states say similar things. Make the lookup easy.
A current insurance certificate. The FTC tells homeowners to ask what insurance a contractor carries and to confirm coverage for personal liability, workers’ compensation and property damage [1].
References they can call. The same FTC guide suggests asking for at least three past clients [1]. Keep a list of customers who’ve agreed to take a call, sorted by job type.
Recent reviews. BrightLocal’s 2026 survey of 1,002 U.S. consumers found 97% read reviews for local businesses, 68% will only use a business with four or more stars, and 74% look for reviews from the last three months [5]. A steady trickle of fresh reviews beats a pile of old ones.
Photos of similar jobs, ideally on nearby streets, with before and after.

Keep reviews honest. The FTC has warned businesses that creating, buying or posting fake reviews, or paying incentives only for positive ones, can bring enforcement and fines [6] (general information, not legal advice). Ask every happy customer, not just the ones you’re sure about.

When to walk away

Some bids aren’t worth winning. Losing them on purpose protects your crew, your schedule and your reputation.

They want you to beat a number for work you wouldn’t do. Skipping the permit, leaving the old layer on when it shouldn’t be, or undersizing equipment to save money.
They want cash with no paperwork. The FTC warns homeowners about contractors who only take cash [1]; you don’t want to be the one who does it as a favor.
Price is the only thing they’ll discuss and your floor is above their target. Say so kindly and leave the door open.
They’re using you to check another bid. A homeowner who wants a detailed design and line-item pricing “just to compare” on a big job may be getting free consulting. It’s fine to charge a design fee and credit it back if they hire you.

Walking away politely: I appreciate you considering us. I don’t think I can do this job at that number and still do it the way I’d want to. If things change, or if you’d like a second look at another project down the road, I’d be glad to hear from you.

If you lose anyway, our guide to following up after a lost bid covers what to do next.

Common questions

How do I compete with a lower bid without cutting my price?

Find out what the lower bid includes. Most gaps come from scope: equipment, permits, materials, warranty or cleanup. Show the homeowner the difference in writing, and offer a lower option that removes something rather than the same work for less.

Should I ask to see the other contractor's bid?

Yes, politely. Many homeowners will share it or read it to you. If they won't, give them a comparison sheet listing the questions that matter for the job so they can check every bid against the same list.

Is it ever OK to criticize a competitor?

Avoid it. It sounds like a sales tactic, you may be wrong about that job, and word travels. Describe what you include and why, and let the homeowner see the difference for themselves.

How many bids do homeowners usually get?

It varies. In a 2018 Modernize survey half of homeowners said they prefer at least three estimates, while a Lennox study quoted in a trade magazine found 55% of consumers get only one quote. Plan as if you're being compared, and work to be the one that makes comparing unnecessary.

What proof should a contractor show a homeowner?

Your license number, a current insurance certificate, references the homeowner can call, recent reviews and photos of similar jobs. Put them in the proposal so the homeowner doesn't have to ask.

When should I walk away from a bid?

When the homeowner wants work you wouldn't stand behind, wants cash with no paperwork, or will only accept a price below what the job costs you to do right. Say so politely and leave the door open.

Sources and how we compared

Homeowner guidance comes from the FTC and California’s contractor board; survey figures come from Modernize, BrightLocal and a Lennox study quoted in an HVAC trade magazine, all opened October 4, 2026.

FTC: Hiring a Contractor (consumer publication) — March 2014
California Contractors State License Board: What seniors should know before hiring a contractor
Pro Builder: Survey: 43% of homeowners choose contractors based on price (Modernize survey) — 2018 survey by a lead-generation company
ACHR News: How to be the first and last quote a homeowner gets — October 2024; Lennox figure quoted secondhand
BrightLocal: Local Consumer Review Survey 2026 — February 2026; vendor research
FTC consumer alert: FTC warns businesses about fake reviews — December 2025

Last updated October 4, 2026. Prices change; if something here is out of date, call or text (507) 628-0400 and we’ll fix it.