I'm Guessing

Bone Saw

I'm guessing the slump in residential home building/sales, tightening up of lenders etc... is the reason we are seeing soooo many going rate questions in like the last month due to layoffs, firings and downsizing, can't think of any other reason???

Grumpy

I haven't noticed much of an increase. They have always been around. I myself ask from time to time to make sure I am not out of line with various projects.

It is what it is. I think the housing slump has lead to other things and I am eagerly anticipating the calls in the next few years "My <trade> was done a few years ago and they went out of business. I need an esitmate for repair."

Bone Saw

in over 2.5 years of following this forum, I agree there are always going rate questions, but nothing like the last month.

dayspring

While calls have slowed a little and job sizes have gotten a little smaller, I've been pretty busy. Just how bad is the building market in your neck of the woods?

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Putty Truck

Yeah, all these high-flying track sluts will be trying to figure out the repair end pretty soon....it happens after every housing boom. They will invest in trucks, equipment, and ads thinking that it's as easy as working a K&B contract.

There's a world of hurt between new and repair. Before long, you will see want ads saying "No New, Repair Only". Like I said, "same play, different decade". So it goes....

Bone Saw

don't know, I'm booked solid for months, purpose of this thread was that it isnt news to anyone that we are in a reccession with surpluss housing, and sales and permitting are down (as it pertains to residential) compounded with peak building season coming to an end, I can only imagine that this has created a surplus of layed off trades people who are subsequently trying to find out what the going rate is???

RobertCDF

I keep an eye on craigslist because that is the first place the new guys start to advertise. I have seen a LARGE increase of "contractors" on craigslist. Very few of them a licensed so I am not too worried they will just shoot themsleves in the foot.

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Bone Saw

definitely seems to be a trend

Mike Finley

I've seen a change over the last 5 months here too. Just got back from a second look at a smaller job to estimate, the homeowners showed me the 7 other estimates they got for the project. The lowest one was $1700 the highest one was $3400. My price was $4500. I looked over all the other estimates, they looked like children put them together. No doubt by the looks of them they are all guys trying to make a pay check. Lots of guys coming out of new construction, laid off desperate for work, cutting each others throat to buy work.

When I was looking for a replacement for a part-time guy a few months ago I got at least 10 calls from guys in business for themselves willing to pick-up some hours here and there for us. Appears there are a lot of guys hurting and it's going to get slower now and worse.

dee

i am near indianapolis in. & things are up & down. customers are price shopping like i have never seen. as long as they find people to cut all our throats with too cheap prices, we are all going to see slowdowns. but we have to stick to correct pricing or it will eventually put us all out of business. why work for nothing. dee

dayspring

Bone Saw, Sorry, Actually I wasn't trying to change the subject of this thread. Since the slow down, I suppose alot of people that have been working in new construction are bidding in the remodeling world, which is indeed a different ballgame altogether.

It's a shame but those of us that specialize in remodeling are going to have to contend with less experienced (in remods) and possibly hungrier contractors for our work.

All of the homeowners are chompin' for the hard up guys.
It would benifit all of us to share the going rates with one another right now, maybe it would help keep the rates where they should be. Maybe.

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KillerToiletSpider

That's a little hard to do, considering rates are different in one part of the country than they are in another, as a plumbing sub I base my estimates on $1900.00 per fixture, but the work we do is in downtown Chicago.

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Bone Saw

I think things are going to get real ugly, real fast in. I'll continue to push my work in the direction I've always pushed it, but looking into other avenues as well.

Floordude

New construction is out, and remodeling is in. That's where the money is, anyway. But... as mentioned, it brings out the ones exploited so long, they are charging the same price they were dictated all those years, year after year and the same low price. They get into remodeling, and ask, what's the going rate, as that is how they were exploited all those years.

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dayspring

I understand that, however, manhours per item, per sf, etc is the same from place to place, well at least close. Actual "going rates" can vary a great deal even in the same town. A good example is Mikes post above. It is clear to me that Mike knows how to estimate, he knows something the LOWBALLERS don't. I believe that the guys that bid less would like to know where and why "He" derived at his numbers. Wouldn't everyone rather make more than less on the same job?



As stated above, those doing new construction that have been forced into remodeling are charging the same and long term wise, they will not survive, nor will they make even close to what they were making doing it new.

Too many times the homeowner will look only at the bottom line of an estimate. I do my best to itemize my estimates so that the HO can see exactly what they are getting for their money and take the time to explain it all to them. Not I'll remodel your bath for $x,000.00.

Remodeling has different risk factors to be considered too. More obstacles. Remodeling requires IMO, better quality. You are having to sell your product to sometimes very picky individuals not a hurry up and get done GC or developer. I know that some custom builders produce high quality but they are generally selling or building for a particular person(s)

REMODELING IS NOT THE SAME TRADE.

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kevjob

Amen to that remodeling is very different and that difference is what we sell our experience and knowledge in and so far booked into march

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copusbuilder

While I haven't felt the pinch to date I do worry that we are heading for a downturn in our economy.
Where it will lead deserves to be closely monitored?
When groveling starts in the trades the consumer will play it to the end. Anyone that thinks their **** doesn't stink are fooling themselves

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