I Usually Never Do This, But Sometimes It Needs To Be Said... - Business - Contractor Talk

I Usually Never Do This, But Sometimes It Needs To Be Said...

 
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Old 02-02-2011, 09:46 AM   #1
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I Usually Never Do This, But Sometimes It Needs To Be Said...


So I got this email this morning in response to an estimate I did for interior painting the other day:

Jason,
Your estimate is way off, your telling me you want $2,900 dollars for labor, the paint goes for about $20 to $25 dollars a gallon for paint so you saying it will 12 gallons of paint at $25 dollars a gallon, no way.
The $2,900 dollars for labor is what kills me. Jason with the economy the way it is, their are lots of people out of work that need work and your charging these prices.

***XX


This was my response:

***XX

My price is not way off. I am one of the minority of companies that are busy this winter because I don't back myself into a corner by working for what homeowners decide their job is worth. See, the only problem I face is that there are so many other companies that drop their insurance or neglect to get EPA mandated certifications, and so on. That is why you can always get someone who will come in and do the job in twice the amount of time by themselves, as well as cut corners on product and application to soften the loss they are taking on the initial low bid. This drives down the price for all contractors, and gives homeowners a stance to tell contractors 'you should be so lucky to have our work' for our price. I want to make it clear that I do extra work and appreciate every single customer I work for which is why I have longstanding relationships all over the seacoast.

Here: http://www.nwbuildnet.com/stores/boo...aint/npce.html is a link to the 2011 National Paint Cost Estimator Manual. You could buy this to come up with your own price, so that you can tell someone what you are willing to pay. Also, the paint you wanted is closer to 40 a gallon

Thanks,

Jay
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Old 02-02-2011, 09:55 AM   #2
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Very professional, you said your peace without being overly offensive. Good for you.

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Old 02-02-2011, 10:06 AM   #3
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Where can you get $25 a gallon paint? Walmart maybe
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Old 02-02-2011, 10:10 AM   #4
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


The larger problem is the long-term one.

All these out-of-work people hanging out their own shingles, with no insurance, licenses, bonds, permits, RRP, etc. and under-cut the long-term businesses. They are flash-in-the-pan businesses, and will be gone when their employer calls them back to work or they finally realize they're not charging enough to maintain their expenses.

This basically 'trains' the customer into the thinking that the real business are rip-offs. I merely tell the customers like this that I can't touch the other persons price (which is usually about half of mine) because I need to stay in business, not stay busy. If their so-called 'contractor' bails on 'em, I'll be happy to finish the job. Of course, it will be for more than my original price.
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Old 02-02-2011, 10:12 AM   #5
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Very good. Got the point across. Didn't cross the line but still made him feel like a fool with the "but this so you can know what to tell other guys to charge."

If I were you, I would not even take that job if he wanted you to do it.

Ask him how much he thinks you pay for insurance and the rest. Then ask how much profit he thinks you should make. Remember, he goes to work 8 hours a day and makes a profit, why wouldn't he think you get one?
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Old 02-02-2011, 10:20 AM   #6
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Quote:
Originally Posted by Any Season View Post
The $2,900 dollars for labor is what kills me. Jason with the economy the way it is, their are lots of people out of work that need work and your charging these prices.
And that is the mentality of these scumbag HO's. They know that there are good legit contractors out there with no work and can't even feed their families. So they say, this is a great time to do work because there are desperate contractors out there and they will work for whatever WE tell them too.

If you're busy that's great they can go jump off a bridge and they have no response back to you that would make you change their mind. You can laugh at them.

I hope that every HO that says this to a contractor has their boss tell them that they will have their pay cut in half or more than half. See what they would say.
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Old 02-02-2011, 10:27 AM   #7
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


well said-
love to hear if she responds to that-
keep us posted-
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thx-
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Old 02-02-2011, 10:29 AM   #8
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Unbelievable. Nice response Jay, how many sentences did you have to delete for the final draft?
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Old 02-02-2011, 10:30 AM   #9
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Quote:
Originally Posted by Any Season View Post
So I got this email this morning in response to an estimate I did for interior painting the other day:

Jason,
Your estimate is way off, your telling me you want $2,900 dollars for labor, the paint goes for about $20 to $25 dollars a gallon for paint so you saying it will 12 gallons of paint at $25 dollars a gallon, no way.
The $2,900 dollars for labor is what kills me. Jason with the economy the way it is, their are lots of people out of work that need work and your charging these prices.

***XX

......who are supplementing their unemployment,so their price doesn't reflect true costs.
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Old 02-02-2011, 11:21 AM   #10
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Sometimes people just need you to answer why you are charging more than the other guy. They may already feel like hiring you but have this nagging question. They just need to know:

You spend more on materials to give them a better job
You provide workmens compensation insurance to protect them
You provide liability insurance to protect them
You are licensed to protect them
etc.
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Old 02-02-2011, 11:22 AM   #11
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Here's an example of the where and why they are getting the "knowledge" to manipulate the bid prices:

http://www.ehow.com/how_5219856_nego...ontractor.html


This kind of misinformation makes me sick, but unfortunately it's out there.

The irony is:They are also the same people bellyaching because American jobs are being shipped to other countries.

Last edited by mehtwo; 02-02-2011 at 11:24 AM.
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Old 02-02-2011, 11:27 AM   #12
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


[quote=480sparky;1113179] I need to stay in business, not stay busy.



Good line sparky, I'll have to remember that one.
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Old 02-02-2011, 11:27 AM   #13
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Quote:
Originally Posted by thom View Post
Sometimes people just need you to answer why you are charging more than the other guy. They may already feel like hiring you but have this nagging question. They just need to know:

You spend more on materials to give them a better job
You provide workmens compensation insurance to protect them
You provide liability insurance to protect them
You are licensed to protect them
etc.
Well said, you get what you pay for!
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Old 02-02-2011, 11:27 AM   #14
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Good lord...

"Provide incentives for a fair bid. Offer to pay the contractor's suppliers and subcontractors directly. The contractor may like this because the money won't come out of his pocket. Paying other parties directly also prevents the contractor from unfairly adding markup to the cost of the job."

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Old 02-02-2011, 11:28 AM   #15
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Quote:
Originally Posted by thom View Post
Sometimes people just need you to answer why you are charging more than the other guy. They may already feel like hiring you but have this nagging question. They just need to know:

You spend more on materials to give them a better job
You provide workmens compensation insurance to protect them
You provide liability insurance to protect them
You are licensed to protect them
etc.

I carry a copy of this in my truck:

Business Cost List

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Old 02-02-2011, 11:29 AM   #16
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Great list.
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Old 02-02-2011, 11:30 AM   #17
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


Quote:
Originally Posted by J F View Post
Good lord...

"Provide incentives for a fair bid. Offer to pay the contractor's suppliers and subcontractors directly. The contractor may like this because the money won't come out of his pocket. Paying other parties directly also prevents the contractor from unfairly adding markup to the cost of the job."

Disgusting ain't it?
What the HO doesn't realize is that they create more problems when they are in the middle of the contractor and subcontractor network.
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Old 02-02-2011, 11:32 AM   #18
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


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Old 02-02-2011, 11:33 AM   #19
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


My response to things like that from HOs is this, I am neither the cheapest nor the most expensive contractor out there. When was the last time you took your vehicle to the shop? Did you happen to notice the shop rate? Been to the doctor? Got an attorney?

I have found that you have to put things into perspective for penny pinchers. Once you do without being condescending they're usually fine. I would say that in this particular instance, that Any Season could do this job for free, donate the materials himself and the customer would STILL not be happy. Time to turn and walk away, let someone else have this crazy nut job.
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Old 02-02-2011, 11:33 AM   #20
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Re: I Usually Never Do This, But Sometimes It Needs To Be Said...


handeling that Jay...seriously
... but you forgot one item on your responce..


your water mark....



B.

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