Running the Business · Part 5
The other guy is cheaper: what to say, what to let the customer check, and the line not to cross
Lesson 2 of 9~8 minFree previewCurrent as of September 2026
Every plumber hears it, and the honest answer is not a discount and not an insult. It is a short list of what a price includes that a cheaper one may not, said in a way that lets the customer check: the license number on CSLB's site, the bond and workers' compensation on file, the permit, the written contract with its notices, the insurance certificate, the warranty. This lesson gives the conversation, the three questions a customer can ask any bidder, what the law does to a customer who hires the unlicensed cheaper guy, and the line a licensed contractor must not cross when talking about a competitor.
What the full lesson covers
- Do not match the price; explain the difference. "Here is what my price includes; ask the other bid whether it includes the same things."
- Three questions the customer can ask any bidder and verify: What is your license number (check it on CSLB's site for the bond and workers' compensation)? Is the permit included? Will you put the price and the notices in a written contract before starting?
- A customer who hires an unlicensed contractor loses CSLB's help, may be liable for that person's injuries, and holds a contract the contractor cannot enforce (B&P 7031); a customer who hires a licensed one at a price that skipped the permit gets lesson 4.22.
- Never misrepresent a competitor (B&P 7161); state facts about your own bid and let the customer compare.
- Some jobs are lost to the cheaper bid, and the ones lost that way are usually the ones that would have cost you money.
Unlock the full lesson
This is the public summary. The full lesson has the method, the worked cases, the checklists and the templates:
- All in-depth lessons, exam prep and After the License
- 1,200+ practice questions
- AI tutor (100 messages included)
- 18+ hours of audio lessons
- Full-length practice exams
- Pass guarantee
More lessons in Customers, Warranties, and Complaints
- 1Presenting options and price without apologizing
- 2The other guy is cheaper: what to say, what to let the customer check, and the line not to crossYou are here
- 3Delivering bad news: it is worse than you thought, and how to say so
- 4You are liable for four years (patent) and ten years (latent), and CSLB accepts complaints that long
- 5A warranty policy that protects you: what to promise, for how long, what to exclude, and what a warranty cannot do