What The Hell

fourseasonswa

So I just started my business this year been getting all my jobs no problem from people that know my work. One of my relatives asks me to bid a 60x 40 shop 12' walls with board and batten siding, three garage doors, four 5x5 windows and a man door, 5/12 pitch with 30yr argictectural roofing included I tell him $15,000 $2000 of that for the roof so $13000 for framing and siding labor costs. yea might sound high but I cut no corners which people pay me for. He comes back saying he can get it done for $6000 I'm stuck in limbo I can slam it together for that price and barely make the bills I like the guy and he can get me more work but it blows my mind that I'm that far off. I don't like putting my name of stuff thats just slammed together I want the work but I need some other thoughts on this any input helps. I Just built a 36 x 40 with lp and shigles for the gables 8/12 for $14,500 which he never even questioned my bid. Am I way off here I'm so confused

Metro M & L

Don't give in.

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Joe Carola

He cut your price by 60%. Why are you even wasting time thinking about this?


Why is it that you're so far off? Why aren't you looking at it like the other guy is so far off and not you?

Take off 60% and go down to match that price and you look like you tried to stick it up your friends a$$ from the start.

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Joe Carola

woodchuck2

X2, you cant work for free. Free dont pay the bills!! Even a relative should understand that, and you alreay gave him a break in your quote when comparing the price of the last garage you built. If they have someone for $6k then let that person do it, leaves no hard feelings between you and family. The only time i do any favors or give big breaks are for those that i know will return that favor or savings, other than that they can pi$$ up a rope!!!

Mike Finley

What if he came up with $3000?

If it costs you X to do it what difference does it make if somebody says I can get it done for X minus $10,000? Why not X minus $12,000 or X minus $20,000?

They are just numbers with nothing attached to them.

If it cost you X it costs you X, what difference does it make that some unknown nobody might be able to do something maybe close to resembling the work possibly they heard from a cousin's uncle who knew a guy once that could do it for XYZ?

If you cut no corners and that's what people pay you for then obviously this guy is not one of those people is he? So why are you talking to him?

strathd

Did he say WHO could do it for 6k ? Just might be a ploy.

CScalf

I would stay the course, and simply, say, I wish I could do it for that but unfortunately I can't, I hope that they give you the quality that you deserve and would get from me. see what happens

and maybe he can get you more work, but it would go like this, yeah he built me a 60x40 shop and it was only 6k, do you want those jobs, or a 60x40 for what you need to turn a profit?

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wallmaxx

Stand your ground.

I just bid a 12' x 12' shed. I planned on 9' walls, stick framed roof 16"oc 2x6, walls sheathed, hardie lap, 1 window, site-built dbl 2-6 outswing doors. My material costs were the same as for the local lumber yard to fully install one of their "sheds". (they have everything on 24" centers, 6'-8" wall height, no sheathing, no lap siding - just primed T-111 acting as sheathing and siding, no window. (like in this picture attached)

It is a night and day comparison. If you are selling to a bottom dollar shopper, it is always good to explain the differences. You are a cadillac contractor - not a yugo contractor. I applaud your high standards. There needs to be more quality contractors and less cheap posers.

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LEVELBEST

I quoted a friend of mine to trim his new 5,000 sq ft. house and he called me after he got my quote and told me that I was about $2000 higher than anyone else. I told him that I just couldn't do it for that due to the fact that I pay my guys more than most because they are better than most.......he was fine with it. He wasn't upset with me.......he was more worried about how I would take him not giving me the job. I knew better than to go down on it bc I didn't want him to think I was trying to screw him with the first bid(which I wasn't).

HusqyPro

Remind your customer that the space shuttles Challenger and Columbia were built by the lowest bidder.

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Handymanservice

I can't figure out how you can even build it for the price you quoted. Maybe there is an existing foundation? No trusses?

The last garage I built was a 16' x 16', monolithic slab, truss roof 5in12, dimensional shingle, 15' garage door, 36" steel mandoor, 2-3020 windows, single pane aluminum and 16" OC KD studs.

That was $16,500 and only had an 8' plate height. I could never even think of offering prices so low, you are right to stand your ground, in fact, triple check your numbers to be sure they are correct. If they are, DO NOT lower your price, it will only hurt you, not help him.

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"You can shear a sheep every year, but you can only skin him once!" Remember that when dealing with your customers and pricing.

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IHI

Welcome to the new age of contracting, times are hard financially, people are losing jobs/being laid off so what's THE #1 job guys flock too as a back up plan.......we're in it-Construction. I cant tell you the influx of hacks popping up all over the place offering to do work at off the wall prices, I've looked at and bid more work this year than ever before, and have been told i'm waay out of the ballpark this year than ever before....and i have'nt raised a single labor rate, just materials have gone up a bit....that's just how low labor has gone, all these fricken fools operating under the radar offering to do stuff for next to nothing.

I dont see it changing anytime soon, there will be some customers willing to pay more for true quality, but mass work, cheapest price wins it....so be prepared to sit around and watch ole rusty trucks/vans pull up on jobsites, next year start up a repair service, i betcha you'd be swamped after this years hack attacks.

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KentWhitten

What the hell? Welcome to every day business.

You just received some very valuable FREE advice, I would take it to heart and listen carefully to what was said. Don't worry to much about what you just did (hack your prices to an absurd level) and learn from it.

We all went through this and it will take some time. It sounds like you have the BUILDING talent, now just need some minor tweaking on the business end is all.

And relax! Over doing your emotions in a situation like this broadcasts your level of experience to the customer. The more over the top you are, the sly ones will prey on you like hawks.

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Custom Cabinetry - Portland, Cape Elizabeth, Scarborough, Kennebunkport, Yarmouth, Falmouth, Cumberland, Ogunquit, Maine

Salmon Falls Cabinetry

deckman22

I'd have to agree, your price is too low. If you can do it for that then don't even think about budging on the price.

Beside you're going against the golden rule of contracting, don't work for friends or relatives. That's not a hard & fast rule, but is true 95% of the time.

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jkfox624

Around here the rule of thumb has always been around $9k per garage bay, i gotta agree with handyman your price seems low to me.

BCConstruction

Tell me about it. I am going to do a bathroom for my bro in law and i told him 15-20 days in all as he changes his mind each day about what he wants in there. Well his other bro in law is the original hack and he told him that he would do it and he could have it done in 3 days . I was even there when he said that and told him that unless his work days were 40 hour days it's impossible. But all my bro in law thinks about is the time/cost and he truely believe's that he can do it in 3 days lol. SO it makes me look like im taking ages. I told him to get him to do it in 3 days. Cant wait till the job starts.

Rockhound

Tell him: 1- To go ahead and have Gouger and Co. to do it. 2- That you will NOT visit him in the hospital when it collapses on him. 3- That you will require TWICE the original price to clean up and rebuild and 4- That he had better not talk crap about you to the rest of the family or you'll physically remind him what you do for a living.

480sparky

If I'm doing a $10K job, and then the owner tells me he can find someone who can do the job for $5K and want me to lower my price, here's my standards response:

"I can easily find someone who will do it for $15K. I guess my price can go up as well!"

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Inner10

I simply respond "then if price is the issue lets stop wasting eachother's time and get them to do it"

As my grandfather use to say "tell em' to go piss up a god-damn rope!"

72chevy4x4

hard to believe you could actually build it for 6k. I've got a 24x60 w/ 20 of the 60 enclosed, rest is open, material cost ONLY is close to 12K (w/ concrete).

are your numbers w/ concrete?