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Discussion Starter · #1 ·
Okay how does one compete with these contractors that just get some illegals to do the work for peanuts? I will NOT hire illegals. I have a great group of guys but I have to pay them real money. I will never get another job if I continue doing this. This business is BS. A_hole contractors hiring cheap labor to underbid me on every job. I am fair and honest but that doesn't mean **** when some ******* contractor underbids you by not paying his laborers.

So to all you contractors that hire illegals FU!! In my area the only thing that matters is price. So when some ******* bids $6,000 for 40 square how in the hell are you making money? Illegal labor.
ARRRRGHHHHHHH!!!!!!!!!!!
 

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Sometimes I think it is just a matter of figuring out how your company will fit in the game. Something that amazes me is that Apple has a very small share of the OS and desktop market (not sure about mobile market) yet it has HUGE cash reserves and profit margins.
 

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I hear people talk of prices everyday that takes my breath away. Yesterday was a garage door. I was asked and gave a range of 900-1200 no motor. These numbers are 10 yrs old. He showed a written quote with 3 options, all under $600. The bigger the job it seems the more ridiculous.


These people live in a cash world. It used to be king, now a days cash is just spending money. We are all visible, glued to insurances and taxes.
 

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In my area the only thing that matters is price.
This right here is your biggest challenge... and I'm not talking about the price...

There has been and ALWAYS will be someone lower than you and higher than you... and money has been and ALWAYS will be a factor in people buying things...

Most people buy on Company, Product, Service and Price pretty much in that order... do a good job on the firs three and the last ones affect is minimized...

What are you doing to close sales on the first call? The biggest way to avoid a low-baller being an issue, is to remove the customer from the market...

And BTW, just because a guys price is better than yours, doesn't necessarily mean it's because of illegal labor...
 

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Once you get fixated on price, you're doomed. I actually had a customer tell me last week, they didn't choose me because they thought my price was too LOW.

I'll admit, I "worked them in" my appointment schedule when I really shouldn't have. I didn't spend the amount of time with them I normally do, when quoting a project. I was trying to cover everything I thought needed covered, without taking the time to ask really good questions, which means I didn't get to do the most important thing in the quoting process.... LISTENING. When I put the numbers together real quick like I did, KNOWING I was the last of several bids, I KNOW I probably quoted it a little lower than I normally would, just to try and close the deal quickly. And, it cost me a sale.... I'm sure of it.

The same thing can happen when you get in a slump. You stop taking your time in your quoting process and you start cutting corners. You're so desperate to get a sale, you start dropping your price. Once you start playing down in the gutter, it's hard to climb back out sometimes. Once you're down there.... it's a knife fight. Even if you win once in a while, you're so bloodied from dropping your shorts, it's difficult to recover.

The next project you quote, spend EXTRA time selling yourself, your experience, past customer satisfaction etc., and price the thing higher than you normally would. You might just be surprised how the perception of going with a QUALITY contractor, using only the best materials and workmanship.... can make you the one they WANT to go with. Regardless of price.

Not everyone is a price shopper only.
 

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Discussion Starter · #8 ·
rotarex said:
Stop being a paper contractor and do the work your self, get a helper or 2 and this way you dont gotta cry ;)
I do the work. I have employees. Great workers, solid guys. You must not work in the trade as that number is impossible to beat unless you hire people willing to work for nothing. $5 an hour. Also he has ten guy on his crew. He claims two days. Now let's see 40 square.
$4,000 just for shingles
Synthetic and two rows of ice and water. Drip edge dumpster..... $1000
So he has $1000 to pay ten guys for two days. What a great deal. So cry. Ya I'm crying. Wait until it affects you then come back.
 

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Discussion Starter · #9 ·
Fyi. These are long time customers who know my work. They don't mind paying more on the smalls. But just can't pay more on the big jobs. Someone said it earlier. How true. I'm not bitching just venting. Frustrated. It is happening more and more. I know the game game is all marketing.
 

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I hear people talk of prices everyday that takes my breath away. Yesterday was a garage door. I was asked and gave a range of 900-1200 no motor. These numbers are 10 yrs old. He showed a written quote with 3 options, all under $600. The bigger the job it seems the more ridiculous.


These people live in a cash world. It used to be king, now a days cash is just spending money. We are all visible, glued to insurances and taxes.
What kind of door are you getting $900-1200 for, sans opener?
 

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I do the work. I have employees. Great workers, solid guys. You must not work in the trade as that number is impossible to beat unless you hire people willing to work for nothing. $5 an hour. Also he has ten guy on his crew. He claims two days. Now let's see 40 square.
$4,000 just for shingles
Synthetic and two rows of ice and water. Drip edge dumpster..... $1000
So he has $1000 to pay ten guys for two days. What a great deal. So cry. Ya I'm crying. Wait until it affects you then come back.
If you want to just complain about it to feel better, that's certainly an option, and we've all been there, but if you actually want to DO something about it, you need to change what you are doing now...

What are you doing to close the sale on the first call?... something else to keep in mind is not everyone is your customer, no matter how much you want that to be the case...
 

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Sorry for my Ignorance, but i don't understand how a minority group can take jobs from a professional .
we have illegals here to, but i have yet to encounter one in the last 10 years taking a job from me.

When i sell a customer i have yet to sell by price, but by my quality service backed by proper drawings and customer service.

Im not here to put you down by any means, but re think how you do things, sure their are going to be customers buying cheap, because they dont understand the industry and can you blame them, no you cant as they dont got the money, so you educate them and they will wait for you when they have money
 

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Love me some Concrete
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It is getting harder, $900 to $1200 is dead on where I would bid a garage door, I can not cut it much more than that, not worth doing to loose money.

I have a roofing crew that I use all the time, not sure if Illegal but they are hispanic and no one can beat there prices along with completetion time. They save me money along with time and the headache of roofing, it sucks for other companies but I need quality work, there's is top notch and very cheap.

I do not think its any different then say a drywall crew that has a bunch of criminals and meth heads working for them. Just my thoughts
 

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I just lost a 24sq roof on a rental I did all the work on. Guy came in $4000 less than me. I told the owner good luck and walked away
 

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Clopay labor material removal.
I prob pay around $600 per door for a standard 9x7 insulated steel. The company I deal with does a lot more volume than smaller guys. I wouldn't even be interested in doing a garage door because it's commodity work. Pretty much any if the garage door/gutter/insulation places around here are in that ballpark. The smaller garage door guys don't have the buying power the big guys do.
 

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Okay how does one compete with these contractors that just get some illegals to do the work for peanuts? ? Illegal labor.
ARRRRGHHHHHHH!!!!!!!!!!!


I dont compete with anyone.. I sell myself and my quality .

Why would one want to compete like that:laughing:

I can sniff out the tirekickers almost instantly!
 

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Vender said:
I do the work. I have employees. Great workers, solid guys. You must not work in the trade as that number is impossible to beat unless you hire people willing to work for nothing. $5 an hour. Also he has ten guy on his crew. He claims two days. Now let's see 40 square.
$4,000 just for shingles
Synthetic and two rows of ice and water. Drip edge dumpster..... $1000
So he has $1000 to pay ten guys for two days. What a great deal. So cry. Ya I'm crying. Wait until it affects you then come back.
They are probably playing the low bid , get your foot in the door price, then charge out the yazoo on change orders. I am willing to bet the quality will not be as good as what you offered. And I'm sure the neighbors won't mind 10 laborers releaving them self in the bushes. The back yard will probably have dead spots after they leave. LoL. I'm guessing they are doing it cheap as possible no ridge vent, reuse the drip edge. Forget about flashing, and a yard full of nails and shingles when they leave. I am sure you sold a better job than that. It goes back to you get what you pay for.
 

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You need to pick the customers and work that you can profit from.

I learned long ago that you get the types of jobs that you take.

You can work for twice the people for half the money or half the people for twice the money. Your choice.


Mike
 

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brhokel606 said:
It is getting harder, $900 to $1200 is dead on where I would bid a garage door, I can not cut it much more than that, not worth doing to loose money. I have a roofing crew that I use all the time, not sure if Illegal but they are hispanic and no one can beat there prices along with completetion time. They save me money along with time and the headache of roofing, it sucks for other companies but I need quality work, there's is top notch and very cheap. I do not think its any different then say a drywall crew that has a bunch of criminals and meth heads working for them. Just my thoughts
Oh so now we're down tocomparing a drywall crew with meth heads and criminals to illegal hacks?? Come on now!! Why do they gotta be drywallers??? Keep on using possible illegals to save a buck and keep telling yourself it's ok. But let's leave the drywallers out of this! Around here contractors used to like the cheap illegal labor, but that's becoming a thing of the past, at least in the high end customs. Nobody wants a crew that comes in and blows out a job without even talking to anybody. Contractors and homeowners like somebody they can communicate their needs to. And sometimes they just want somebody the can BS with. They ain't getting that with the burrito bros.
 
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