Reader question: I lost three bids last month to a cheaper guy. Do I drop my price?
A concrete contractor lost three driveway bids to a lower number and wants to cut prices. Why that is usually the wrong first move, and what to check first.
"I lost three driveway bids last month. Every one went to the same guy, and every time he was $1,500 to $2,000 under me. I pour good concrete with proper base and rebar. Do I need to drop my price to compete, or is something else going on?"
Short answer: probably not, at least not yet. Losing on price feels like a price problem, but most of the time it is a selling problem. The homeowner could not see why you cost more, so she picked the number that was easier to understand.
Before you cut, work through these in order.
1. Did the homeowner know what she was comparing?
Pull up your three lost quotes and the other contractor's quotes if you saw them. Ask yourself: could a homeowner who has never poured concrete tell the difference?
If your quote says "Remove and replace 600 sq ft driveway, 4 inch, $9,800" and his says "New driveway, $8,000," she sees two driveways and a $1,800 gap. She does not see your 4 inches of compacted gravel base, your rebar on 18 inch centers, your control joints, your 4,000 psi mix or your cure. If it is not on paper, it does not exist to her.
The fix is a quote that lists what she is getting, in plain words, line by line:
- Remove and haul away old driveway
- Excavate and compact 4 inches of gravel base
- Rebar grid, tied, set on chairs
- 4,000 psi concrete, 4 inches thick, broom finish
- Control joints every 10 feet
- Sealer applied after cure
- Two-year workmanship warranty
Now the cheaper quote has to answer for what it left out. The pricing and quoting guide shows how to lay this out as a good, better, best so the customer chooses a level instead of a contractor.
2. Did you explain it in person?
A written list helps. A two-minute walk-through helps more. When you hand over the quote, point at the old driveway and say: "See the cracks running off the corner? That is usually a thin base or no reinforcement. Here is what we do differently." Homeowners remember the person who explained the problem.
If you are emailing quotes without talking to anyone, you are letting the number do all the talking.
3. How fast did you get the quote out?
Speed wins a surprising number of concrete jobs. The homeowner calls four contractors. Two show up. One sends a quote the same day. The fourth sends one a week later. By then she has already mentally picked someone.
If your quotes go out three to five days after the visit, the lower bid may have been the only one she had when she decided. Aim for same day or next morning. The missed calls and speed to lead guide covers the same logic at the first-call stage.
4. Did you follow up?
A quote with no follow-up is a coin flip. Send one text two days after the quote:
"Hi [first name], it's [your name]. Any questions on the driveway quote? Happy to walk through the base and reinforcement if it helps you compare. I have a pour date open on [date] if you want to hold it."
That one message invites her to compare on quality, not just price, and gives her a reason to decide now.
5. Does your online presence back up the price?
When a homeowner gets two quotes $2,000 apart, she goes to Google. If you have a handful of reviews and no photos of finished work, and the cheaper guy has more, she has no reason to pay more.
Look at where the trade sits. In our data on 80,873 concrete listings, the median contractor has 7 reviews, and the top 10% have 55 or more. 25.7% have no website at all. A contractor with a real site, photos of finished driveways and a steady flow of reviews can charge more than the median and still look like the safer choice. The benchmark report shows the full picture.
6. Is the lower guy actually profitable?
Sometimes the other contractor is cheaper because he is skipping steps, uninsured, or not counting his own labor. That is not a price you can or should match. If he is underbidding everyone by that much, he will either raise his prices or stop answering his phone within a year or two.
When dropping the price is the right move
There are times it makes sense:
- You have checked your numbers and your margin is well above what similar jobs in your area need.
- You are consistently losing on price even after improving your quotes, speed and follow-up.
- You want to keep a crew busy in a slow stretch, and you offer a specific, limited reason for a lower price, like a firm date in a gap in your schedule.
Even then, cut by changing the scope, not just the number. Offer a "good" tier with a thinner finish or no sealer so the customer can choose it. That protects your full price for everyone who wants the best job.
The short version
Three lost bids is a signal, not a verdict. Fix the quote, explain it in person, send it faster, follow up once, and make your Google profile show the quality you charge for. Then look at price.
If you want help with quote follow-ups or your Google profile, the free 14-day trial covers any one service, no card: text or call (385) 832-6924.
Steven has spent the last several years running growth campaigns for local service businesses, concrete contractors among them, and builds the benchmark datasets on this site from public Google listings. About the editor