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Discussion Starter · #1 ·
So everyone knows that it's that time of the year and with the economy how it is, I'm finding myself lowering my standards as far as my self worth and service costs. I've taken a few jobs in the last months for a considerably lower price than I would have any other time and place. I keep telling myself as I work for the bare minimum that "some money is better than no money". On the same hand I'm telling myself "your a dumb ass for working for free basicly". My question to my fellow construction brothers is this. When do you drawl the line and say "no I'm not taking this job", and when, or do you ever just tell yourself " I'm getting hungry it's time to eat, at the expense of your hard work for less than even the average dollar amount. I know some of you are gonna throw up your integraty line and I want to hear it, but also I want to hear about how the kids don't have any Christmas presents because daddy won't work for $100 a day because he's worth way more than that and he has his pride to live up to. Just a question I'd like to here from others about because I know my answer! I'm gonna feed my family and pay my bills if I have to dig ditches. So come on and lets hear it.

Thanks.
Mike Baron
 

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Do what you have to do

My question to my fellow construction brothers is this. When do you drawl the line and say "no I'm not taking this job", and when, or do you ever just tell yourself " I'm getting hungry it's time to eat, at the expense of your hard work for less than even the average dollar amount.

I know my answer! I'm gonna feed my family and pay my bills if I have to dig ditches. So come on and lets hear it.

Thanks.
Mike Baron
Is the "L" silent in Texas? :laughing: (just kidding)

You've got the right attitude, my friend. As long as you're (1) not LOSING money on the job, (2) still doing a GOOD job, and (3) you're making more on it than you can doing something else (like delivering pizzas), then do it.

Don't let someone who's not in your situation tell you to not compromise your prices. They're probably more worried about keeping their own prices high in the face of softening demand than they are for your wellbeing.

I've seen plenty of examples of operations (large AND small)who waited too long to compromise and now are in worse financial straits than if they had sucked it up and dropped their prices. Don't be one of them.

Hang in there!
 

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A man's gotta eat.

You do what you have to do to make money, bottom line.

I think the problem is that people are playing off the economic recession as a discount card for labour. Customers now think people will work for very little and contractors think that they have to lower their prices to meet a market equilibrium. Naturally in some areas some people will have to lower their prices to be competitive, where as some others who have large loyal client bases may not.

Everyone has to realize that things change and they must adapt their business to their environment to stay afloat. Although I'm talking partially from my arse since I'm in a government town in Canada and my workload has not be effected on bit.
 

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Something wrong with the economy where you're at? Things are great here.:whistling

Always make sure the kids are fed and taken care of.

OTOH, a man who lowers his standards is someone I'd have to question on if he'll lower other things too, like quality and ethics and things like that.

Ob my final note, just what is wrong with digging ditches?
 

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I agree with Cdat. Once you start lowering your prices, it is going to take you just as long as it did before, to get them to what they were.

I have 2 kids but, with a little planning and preparing, we can have name brand mac and cheese year round.

According to Chevy Chase in Caddy Shack, the world needs ditch diggers!!
 

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I agree with Cdat. Once you start lowering your prices, it is going to take you just as long as it did before, to get them to what they were.

I have 2 kids but, with a little planning and preparing, we can have name brand mac and cheese year round.

According to Chevy Chase in Caddy Shack, the world needs ditch diggers!!
Ted Knight said that.:thumbsup:

 
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IMO ur doin the right thing. Seems like survival is the M.O. in this economy. Take care of your family and keep your business going so when better days come you'll have a horse in the race. As far as quality is concerned, do a decent job, but don't get carried away.
 

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Thanks Jumbo, I am usually really baked when I watch that.:whistling

Chevy said there is nothing wrong with working at a lumber yard, he owned seveal, just didn't know where they were!!:laughing:
:laughing:
 

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Only a Texan would say "Drawl the line".

Being from Texas I can appreciate that. I've done a lot of public speaking through the years and I usually inform the audience, "listen real good, 'cause in Texas they teach us to read and write the English language but not to speak it."
 

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It's OK to lower your prices as long as you know what you can lower them to and still cover your overhead and make a profit. If you don't cover your OH then your paying to work. If you don't make a profit then you may as well go to work for someone else.

Once you drop your prices below the established O & P requirements for your company you may as well start looking for a job because you will not likely recover from it. If you can't bill enough then it is better to not work through the company. Get a job doing something else to make it through until you can generate enough paying work to stay busy for awhile.

I wouldn't worry to much about Christmas presents either. The most important things are that you have your health, a roof over your head, food, and the utilities are paid. To many people think Christmas is about Santa and presents and forget about family togetherness and the birth of Christ. Many of these people put themselves in debt to purchase presents that are not truly appreciated but rather expected. Maybe now is a good time to instill the values of togetherness and sacrifice in your children before they get caught up in the how many presents can I get for Christmas and I am entitled to attitude.
 

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It's OK to lower your prices as long as you know what you can lower them to and still cover your overhead and make a profit. If you don't cover your OH then your paying to work. If you don't make a profit then you may as well go to work for someone else.

Once you drop your prices below the established O & P requirements for your company you may as well start looking for a job because you will not likely recover from it. If you can't bill enough then it is better to not work through the company. Get a job doing something else to make it through until you can generate enough paying work to stay busy for awhile.

I wouldn't worry to much about Christmas presents either. The most important things are that you have your health, a roof over your head, food, and the utilities are paid. To many people think Christmas is about Santa and presents and forget about family togetherness and the birth of Christ. Many of these people put themselves in debt to purchase presents that are not truly appreciated but rather expected. Maybe now is a good time to instill the values of togetherness and sacrifice in your children before they get caught up in the how many presents can I get for Christmas and I am entitled to attitude.
Just curious as to whether
you've had kids?
 

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Lowering your prices sets a bad precedent.

It's not an easy thing to do but instead of lowering prices to generate business, what about marketing better? Seems that's the issue, not your work. Like it or not, you're in a competitive field within a troubled economy. Relying on typical methods for generating business will yield typical results.

In '08 I started lower prices to compete. Ultimately, it was a negative thing. When I worked the numbers, I was making employee rates as an owner. That's just dumb. I could work for someone else and not have any of the headaches while working only 40 hours. In '09 I put my pricing where it should be and VOILA!!!! My close rate has been identical but at least I'm now getting paid to own a business.

I've had more down time than I'd like but I've used that to educate myself. Whether I'm in a workshop, taking a tiling class or reading a marketing book, I'm not just sitting around lowering prices to compete. I'm making myself more credible. That translates to an easier sale. Which leads to more business.

You need to become a better contractor, salesman and business person. Do that and you won't have to lower your prices to compete.
 

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Discussion Starter · #16 ·
Just curious as to whether
you've had kids?
Well to answer your question, Yes I am a single father w a 16 yr old bout to be 17 in January. I've raised him by myself since he was 5 yrs old. I had a head start, I was his age when he was born! So with that said I did'nt have any options other than to grow up real fast. That whole being a kid thing passed me up. :laughing: I wouldn't change it for the world. I have an honor student thats never in trouble and an all around great boy.:thumbup:
I don't usally ask questions or make comments like my one "Where to Drawl The Line" unless it comes from personal experience. Im not just posting crap, I'm taking this info and using it to better myslef and my company. That posting and I'm sure many more to come will all be used to be successful, and what a better reference guide than my brothers that are out there doing the same thing as me. Might be a little hard on me but that only make me a better person in the end. Thanks for your question.

Mike Baron
Tri-Coast Construction
 

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Carpe Diem
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Well to answer your question, Yes I am a single father w a 16 yr old bout to be 17 in January. I've raised him by myself since he was 5 yrs old. I had a head start, I was his age when he was born! So with that said I did'nt have any options other than to grow up real fast. That whole being a kid thing passed me up. :laughing: I wouldn't change it for the world. I have an honor student thats never in trouble and an all around great boy.:thumbup:
I don't usally ask questions or make comments like my one "Where to Drawl The Line" unless it comes from personal experience. Im not just posting crap, I'm taking this info and using it to better myslef and my company. That posting and I'm sure many more to come will all be used to be successful, and what a better reference guide than my brothers that are out there doing the same thing as me. Might be a little hard on me but that only make me a better person in the end. Thanks for your question.

Mike Baron
Tri-Coast Construction

Mike, sounds like you have a good attitude. I, too, hope these replies and the wealth of other info on this site can help point you in the right direction to becoming more successful.

However, Neo was asking ARI001 if he has kids because of his post.
 

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I wouldn't worry to much about Christmas presents either. The most important things are that you have your health, a roof over your head, food, and the utilities are paid. To many people think Christmas is about Santa and presents and forget about family togetherness and the birth of Christ. Many of these people put themselves in debt to purchase presents that are not truly appreciated but rather expected. Maybe now is a good time to instill the values of togetherness and sacrifice in your children before they get caught up in the how many presents can I get for Christmas and I am entitled to attitude.

Agreed.

TriCoast- Good for you.
 

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Discussion Starter · #19 ·
Something wrong with the economy where you're at? Things are great here.:whistling

Always make sure the kids are fed and taken care of.

OTOH, a man who lowers his standards is someone I'd have to question on if he'll lower other things too, like quality and ethics and things like that.

Ob my final note, just what is wrong with digging ditches?
First of all nobody said anything about lowering quality or ethics. Dont get the two mixed up. This was to inquire about other construction industry owners thoughts on making money at the cost of lowering your prices, even if you think your worth more deep down inide. If you lower the other two your just a ****ty business man/ professional! Thanks for the reply though brother hope to hear from you everytime I post somthing.

Mike Baron
Tri-Coast Construction
 
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