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Discussion Starter · #1 ·
I recently bid a job of 75 windows in an appartment building for the owner who also resides there.

I gave this guy a discount because I wanted the job and it's a fairly bid job. I bid at $310 for some typical vinyl replacement windows. I usually start at $350 for the same windows. $350 is about average for a generic vinyl replacement window.

I called him today to see where he was in his decision. He *claims* he has a price of $9,000 lower than mine. My response was "impossible".

Let's do the math. I bid at #310 per window for 75 per window. That's $23,250. If he claims he has a price of $9,000 less that's $14,250. If we divide that by the number of windows, that's $190 per window.

$190 per window?! Even my cheapest sub will charge me $225 per window for a generic window installed.

I should call back this customer and ask to hire his installer!
 

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Discussion Starter · #2 ·
LOL I have no refrences for my new company. See one of my previous posts :) Normally I'd have sent him a checklist which says stuff like:

State Liscenced?
Workmans Comp?
General Liability?
Refrences?
BBB record?
Experienced installers?
English speaking crew?

I'd then fill in all the answers for my company, but since my new company has no refrences or work comp yet I'd be shooting my foot :)

I'm letting it die. I didn't really like the guy and I have a gutt feeling.
 

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Grumpy, sometimes you gotta let'em fly and this sounds like one of them.
Trust your gut.
 

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Windows

Grumpy,
Some guys have a pipeline set up to bulk-buy crap loads of crap windows then pass the crap on to you. I'd ask him if he's thought about how much headache and sleep $9000 is going to cost him...

"I'm letting it die. I didn't really like the guy and I have a gutt feeling."
Probably the best decision.

Tim
 

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The cost of the job is basically made up of two major portions - the windows and the labor right? How much of your bid is the windows and how much of his bid is the windows? In this type of situation I would always suspect that the job I am quoting him and the competitor is quoting him are not apples to apples.

The other cause might be you can't be competitive because you are the middle man using a sub and the other bid might be an actualy installer.

Only way to find out is to ask him a lot of questions. If I could do this... would you... and open up the lines of communication and see what the details of the other bid actually is. Nothing risked, nothing gained, nothing lost.
 

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Discussion Starter · #6 ·
Mike, the price I quoted is "the going rate". It's what any legitimate company charges. I price shop the compitition. Sears will charge $1000 Home depot will charge $600. Any legitimate small company like me will charge $350 minimum. Can I go cheaper? Heck yeah, but why?

He was giving me attitude when I tried to prod and poke questions. In retrospect, he might have just had sticker shock and said that so I'd go away. That's happened to me before. Someone said that I was $5000 high on a $13,000 job. Is it possible? Not by a reputable company... but it turns out she was selling the house. You know how that goes, buyer gets 3 bids seller gets 3 bids... they negotiate and nobody gets the job. 6 contractors waste their time.
 

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Grumpy said:
He was giving me attitude when I tried to prod and poke questions. In retrospect, he might have just had sticker shock and said that so I'd go away.
You may be right on with that!

Grumpy said:
That's happened to me before. Someone said that I was $5000 high on a $13,000 job. Is it possible? Not by a reputable company... but it turns out she was selling the house. You know how that goes, buyer gets 3 bids seller gets 3 bids... they negotiate and nobody gets the job. 6 contractors waste their time
Ouch, that does suck. My buddy just went through that, except he was the seller not a contractor. One contractor he talked to was somehow smart enough to ask him if he was selling this house, when he told him he was the contractor told him he had a $500 estimate fee that would be applied to the job if he chose him. My buddy thought that was crazy til I explained it all to him.
 

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Discussion Starter · #9 ·
Blargh! It happened again. I talked to a guy today who has 20 windows. LOL We were talking on the phone and he said he wanted a price of $200 a window. I snickered very audibly and told him "Impossible." He said "Really? I have a price of $250 per window and thought that was high."

I am going to meet him tomorrow. I am gonna try to dazzle him with my knowledge, brochures, samples, then high pressure him if all else fails.

Sears is $1000 per window and Home Depot is at $500 per window, or more. I think $350 is damned cheap!

LOL I usually never complain about low priced compitition but wow I am in awe!
 

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$200 is a pipe dream. I just saw a "special", "closeout" price of $260 on the highway on some ceran-wrap windows.

Tim
 

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Good point Mike. Grumpy, if you can get ahold of the $200 guy, he'd be a great sub to farm out on projects whilst sitting at home.... ;-)

Tim
 
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