Beat the Competition: How Licensed Pros Can Stand Out Against Unlicensed Providers
by Devon Osborne
Read it to me! Click the video below.
The world of home services can feel like a battleground, with licensed professionals vying for trust and business against a tide of unlicensed competitors who often undercut them on price. It’s frustrating, to say the least—especially when you know you’ve invested time, money, and expertise to ensure your work meets all legal standards and requirements. But while unlicensed providers may have a short-term edge, a strategic approach can turn their weaknesses into opportunities for you.
Competing on an Uneven Playing Field
Unlicensed providers usually don’t carry the same costs. They skip licensing fees, avoid stringent standards, and often sidestep insurance costs. All of these allow them to lower their prices significantly. For a licensed contractor, this can make competing seem impossible. Customers—especially those looking for a quick and cheap fix—may not understand the value that licensing and certifications bring, making them more susceptible to choosing an unlicensed provider.
The challenge here isn’t just in getting customers to see the value; it’s in educating them without sounding like a lecture. Unlicensed providers offer customers an attractive shortcut—but shortcuts can be risky, especially in the hands of an unlicensed provider. So, how can you stand out and show that you’re the smart choice?
Sell Safety, Quality, and Long-term Value
When competing against unlicensed providers, it’s essential to remind potential clients why hiring licensed professionals is worth every extra dollar. It’s not about tearing down the competition; it’s about showcasing the undeniable benefits of choosing a licensed, insured, and experienced contractor.
Here are some ways to set yourself apart:
- Safety Matters: Highlight that your work complies with local codes and safety standards, reducing the risk of future hazards and legal liabilities. For example, “Choosing a licensed contractor like us means you’re investing in the safety and reliability of your home, something that no price can replace.”
- Peace of Mind: Licensed professionals are often bonded and insured. This doesn’t just protect you; it protects your customers as well. If something goes wrong, they’re covered—a risk they won’t want to take with an unlicensed provider.
- Long-term Savings: Quick and cheap fixes from unlicensed providers often lead to more expenses down the line when issues arise. Emphasize that your service may cost more upfront, but it saves them from costly repairs in the future. Real-life stories of clients who had to redo a botched job can be particularly effective here.
Marketing Tactics to Stand Out in a Crowded Space
Besides word-of-mouth, use your marketing materials to emphasize your credibility, reputation, and results:
- Social Proof: Showcase customer reviews and testimonials that highlight the quality of your work, especially those that mention issues with previous unlicensed providers. Let others speak to your reliability.
- Educational Content: Create blog posts, social media updates, and short videos explaining the differences between licensed and unlicensed providers. Focus on real-life risks, like code violations or lack of insurance, that could leave customers with massive liabilities.
- Certifications Front and Center: Make sure your licenses, certifications, and memberships in professional organizations are prominently displayed on your website, social media, and marketing materials. This builds immediate credibility.
- Risk Education on Estimates: When providing an estimate, clearly list your licensing and insurance status. Explain that it’s a layer of protection for customers, something they won’t get with a cheaper, unlicensed provider.
Invite Customers to Value Their Peace of Mind
The last thing customers want is a costly mistake from hiring an unlicensed provider. Use a clear, action-oriented call to action to encourage them to prioritize quality. Offer resources or even a checklist they can use to vet service providers—licensed or not—so they feel equipped to make a safe choice.
