Low Bidders-DOA-and What to do Phoenix, AZ, August 29, 2007. Low Bidders-DOA-and What to do Every business encounters "Lowballers" from Asphalt to Zoo Keepers. Clients would say, "This person came in at half the price. We have to go with them." While we all want to think that a professional is chosen for their abilities, often the reality is that a client can find what they think they need for an incredibly low price. So, just what is lowballing and why is it really bad for all of us? Many people define lowballing as the act of charging less than your competition. Not an accurate definition. Lowballing is charging less than the fair market price. The difference between the two definitions is enormous. Low bidders usually rationalize their actions by saying that they work more days than other more expensive competitors. They live via "Volume" sales as if their work is a commodity and not a professional service and they forget the most important of ingredients: quality. Also, the fear of not getting the job and the perceived threat to ones survival creates a negative downward spiral and selfish ambition. Isn't the idea to have a win-win project? The value in a higher bid will not only produce the best results with less potential problems but the bidder will not waste money, but will spend the time where most needed to ensure the best quality and the best products. When price is no longer the most important issue, the right qualified professional will be selected for the project and will be the best match for the project. The low bidder does not understand value. For example, when you buy a Mercedes you know it is going to cost more than a Kia. Why? Because the Mercedes is a greater value-it has a higher resale price, better warranty, good reputation and better design. The Arizona State University School of Construction receives millions of dollars to evaluate large projects for large companies whose projects were unsuccessful or unprofitable. Their findings would always bring them back to the Low Bidder. Creating substandard workmanship, improper specifications and taking twice the time to complete their scope of work. Like the poor, the lowballer will always be with us. Those who understand that you do get what you pay for and are willing to do the hard work of qualifying the bid and the bidder will improve, not only their project, but their career. Sincerely, Brad Ghaster President Ghaster Paintings & Coatings