[danthebathman]

Is it just me or are prospective customers everywhere thinking that they are entitled to unreasonably low prices for remodeling because of the bad economy? I really hope contractors everywhere are not going to start irresponsibly slashing their prices just to "stay busy". When the "competion" for a simple bathroom project can supposedly beat me by $2,000 (which is happening) I am scared. Anyone?

 

[woodworkbykirk]

ive had that question recently, not so much as to getting work done but a friend asked if we've dropped our rates do to the economy. i didnt give her the truthful answer. simply said i dont deal with the numbers i just do the work when in fact our rates have actually gone up

 

[480sparky]

I just respond with "Just make sure you sign up the low-baller before he goes out of business. If you're lucky enough, he'll still be around in a year for warranty work."

 

[enforcer]

when they ask me to come in alot lower or say the recived quotes much lower,i simply say this:
"we are'nt that type of company,if your looking for a company that does cheap work we really can't help you out. i know a few builders that hire really cheap labor for some affordable housing complex's; maybe i can give him a call and see if i get get a few numbers for you"..
when they get defensive,i whip out my photo book and show them why i charge what i charge. i then dismiss the competition as Kmart and I'm saks 5th avenue;not in an arrogant way but in a logical way.
with Indians,they just care about price and they would let you cover their home in dog crap if you were the cheapest.

 

[Wolfgang]

I've had HO's ask about this topic a couple of times. I just tell them that my overhead hasnt gone down and would never consider lowering my guy's wages. If they want quality workmanship, a valid warranty, and true professionals, they should expect to pay for it.

 

[katoman]

Boy, that's a pretty racist remark. I have clients of all races, religions, including "Indians" that are educated, intellegent people who want quality work in their homes. And a pleasure to work for.

 

[insane]

Started this year off being under cut 25% on a brick house job, oversize brick.
A week after he started the job my brick salesman tells me he was looking for modular size brick that would match the over sized.
If someone is substantially cheaper, there is usually a reason why.

Tim

 

[BobsLandscaping]

I've had more people want to get the plants and mulch themselves to save money when the jobsite is out in Kendrick, Troy, Deary, Bovill, or Juliaetta. From the nursery I use in Moscow to one of those jobsites can be a couple hours and half a tank of fuel so I charge a lot to go get the materials. So far it's worked out ok, I call in the order to the nursery and the HO picks it up and pays for it. Then I do the install. This works best when I don't need any rental equipment out of Moscow, I leave from my house in Genesee and take farm roads. Saves several miles and an hour+ not having to go through Moscow.

Last year I didn't finance any jobs under $3,000, this year I've financed quite a few. Folks seem to want to keep the cash in the bank.

About the same amount of sticker shock as every year.

 

[Darwin]

Is it just me or are prospective customers everywhere thinking that they are entitled to unreasonably low prices for remodeling because of the bad economy? I really hope contractors everywhere are not going to start irresponsibly slashing their prices just to "stay busy". When the "competion" for a simple bathroom project can supposedly beat me by $2,000 (which is happening) I am scared. Anyone?

Does a true crab boat captain see a 40 foot wave that could wipe him out turn sideways and try to outrun it? No. What he does is tell the crew "hold on" then stays the course.

Why should u buckle under pressure?:boat: Stay the course if you don't wanna wipeout

 

[Dustyrose]

I have been blessed. This recession hasn't effected my business. I recently increased my prices by 7% just to cover the cost of inflation.

 

[RayGoerdt]

I have stayed pretty busy so far,
I have kept wages the same, but have adjusted with the cost of materials.

 

[AtlanticWBConst]

Is it just me or are prospective customers everywhere thinking that they are entitled to unreasonably low prices for remodeling because of the bad economy? I really hope contractors everywhere are not going to start irresponsibly slashing their prices just to "stay busy". When the "competion" for a simple bathroom project can supposedly beat me by $2,000 (which is happening) I am scared. Anyone?

I wouldn't necessarily be "scared".
A couple of thoughts:

1. "Supposedly"....is the key word here.

What are they (the HO's) going to get for the supposed $2K less?
What kind of quality, items, parts, etc...does that include, not include?
HO's sometimes only see the "lower number", and miss a lot of fine print and details...

2. The other key words, are "The competition".

Are they really...."your" competition???
Do they really do the level of work you do?
Do they deliver the, quality, workmanship, service, warranty, detail, package, etc, etc.....that you do?

Those guys could be hacks, inexperienced, crooks, etc....
...and those cheap home owners, could end up becoming victims....


FWIW -We just finished a $35K master bath remodel, and have work (Remodels, additions, repairs, roofs) booked pretty much to the end of the year.
My buddies, are also very busy and booked too.
It seems to come in spurts for some guys.
I'd say, don't get flustered.

 

[Darwin]

Is it just me or are prospective customers everywhere thinking that they are entitled to unreasonably low prices for remodeling because of the bad economy? I really hope contractors everywhere are not going to start irresponsibly slashing their prices just to "stay busy". When the "competion" for a simple bathroom project can supposedly beat me by $2,000 (which is happening) I am scared. Anyone?

Honestly, I hope a bunch of contractors start slashing their prices. Then when their crews become overworked, their companies start losing money on jobs, these companies ultimately will go out of business because some didn't do the math.

contractors that fall by the wayside due to mismanagement = more business for us. Stay the course.

 

[MBS]

Is it just me or are prospective customers everywhere thinking that they are entitled to unreasonably low prices for remodeling because of the bad economy? I really hope contractors everywhere are not going to start irresponsibly slashing their prices just to "stay busy". When the "competion" for a simple bathroom project can supposedly beat me by $2,000 (which is happening) I am scared. Anyone?

Just because a HO asked you for a bid, doesn't mean they were ever potentially a customer of yours. Have you ever wandered into a store just to look around, with no intention of buying anything? You may even have asked questions of the sales staff, but still with no intentions of buying anything.

When a cheap HO is going to upgrade their bathroom or some other part of their home, and they have no intention of spending very much on it, they will still get a bid or two from the guys who do quality work, "just to see" what it would cost, and they will always go the low bid route. They were never a potential customer. You didn't get beat on the bid because you never had a chance at it. All the HO did was waste your time, scab some of your free professional advice and get you interested.

The best way I know of to reduce that, is to charge for the estimate, and/or pre-qualify them, either over the phone or while on the initial job site visit/walk through. Cheap HO's take advantage of free estimates blatantly. I don't feel bad about not getting some jobs I bid because I knew by the time the bidding process was over, I never had a chance, that was never going to be a customer of mine.

I also try not to give out the kind of details that a HO can then pass on to their son or nephew, so they can avoid the pitfalls that inexperience and lack of foresight will bring on.

 

[katoman]

Wow!! I believe in Karma. Earlier in this thread there was a disparaging remark made about "Indians" which I took offence to, and replied to that post.

Guess what - this morning a customer of mine who happens to be of East Indian decent calls me up I go to see her. Well she wants her whole bsmt. finished, including bathroom with a Jaccuzi tub and all. Doesn't even want a firm price. Tells me to book her in, do it and hand her the bill.

I believe in Karma :thumbup::thumbup:

 

[skymaster]

I would tell her thank you very much, give her a date to start and then get a contract and a big deposit.:shifty::whistling

 

[ModernStyle]

I have been in the painting industry for over 15 years and have never met an Indian who did not try to talk me down in price and ask for insane ammounts of free extras. You can get offended all you want, but it is true. I have heard people say that in India everything is negotiable, so maybe they are just used to doing business like that, but here in the good ol' U.S. of A. I could do without it.
Now you can cry and call that racist or whatever, but I am not insulting the race of people, I am just saying that the way they do business is not how I operate. I will give an Indian person a quote on work if they call the same as I would someone of any race or nationality, and as soon as they try to haggle my prices I will walk away no matter what race or nationality they are.
Everyone is so defensive about racism, soon it will be racist to tell the police if the guy who robbed the gas station was black, white, or whatever.

 

[katoman]

What you say is true, in India their culture is to haggle the price. But nothing you have said is racist. I took offence to the other post which slandered them all, and a remark about dog sh_t.

Lots of people haggle over the price, espcialy today, and I agree with you, wish they didn't, and if they won't pay my price, I move on.

Yes, I'll get a contract, but can't start her job till January. I just found it somehow profound that the very next day this lady should call me. Dejavu?

 

[Magnettica]

Boy, that's a pretty racist remark. I have clients of all races, religions, including "Indians" that are educated, intellegent people who want quality work in their homes. And a pleasure to work for.

Not many of those around here. Any job with one of those ******** I've ever been on have been nothing but trouble. Do this, do that, no charge. Yeah, right.

 

[nEighter]

I was once an insurance agent for a big insurance company. I used to deal with middle eastern people who would move here, have impeccable driving records, married.. multiple cars, home insurance.. you name it THE WORKS. I would give them the BEST bottom dollar quote and they would freak out! What do you mean $245.00 full coverage $500.00 deductable for six months!! You are trying rip me off!!! And it was always that crowd.. and some asians too.