A lot of contractors turn their noses at habitual low-cost providers. I do it with companies in my industry too. Low cost companies are in every vertical, and if you are just starting out, or want to compete on price, you have to do this one thing to get Mrs. Jones to bite:
Handle all of their objections up front…
Honestly, it really doesn’t matter if you are a low-cost provider or not, it is just harder to win business being a cheaper alternative if you haven’t removed the doubt Mrs. Jones has about you, your ability to get the job done and most importantly, passing the smell test…otherwise, being trustworthy.
Put all of your cards on the table. Take the objection away right at the very beginning:
Mrs. Jones, we are confident in our pricing that we can get you the new widget you want. We are confident in our price because we don’t have an expensive advertising campaign to pay for or teams of people to pay for regardless if they are working or not. We keep our costs low and pass those savings on to you, and that’s how we can do this at this price.
That’s competing on price and winning. And make sure the copy on your website answers that question too, because your website is your number one salesperson, or at least it should be your number one lead developer, so give it the tools it needs to help YOU close.