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  #11  
Old 11-30-2011, 09:35 PM
JoeyDipetro JoeyDipetro is offline
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Join Date: Apr 2011
Location: CA
Posts: 117
Quote:
Originally Posted by steve5966 View Post
So when you guys that lie to the customer about being slow show up a couple days later to do the job, do you think that the customer thinks you dumped your schedule just for them?

If lowering your price is the only way you will get the job, then you know your costs and the point that it is not worth it.

For me, I have year round employees. If I can pay their wages and wear and tear on the equipment, then I will forgo any profit on the job. Even the wheelbarrow sitting at the shop costs me money.
Good post. Too many contractors get fixated on one number that they feel for whatever reason they must "get." Or, they throw prices around with nothing to back them up. Your point of "know your costs and the point that it is not worth it" is the best advice I've seen on here yet.

Charles Vanderkooi teaches to know three prices (I can't remember exactly what he calls them)......price with hoped for profit, price with profit and basically a price that covers cost with very little or no profit. This gives you the information you need in negotiating price, if that becomes an issue and right now, it's an issue for everybody.
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  #12  
Old 12-01-2011, 09:52 AM
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steve5966 steve5966 is offline
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Join Date: Aug 2007
Location: omaha nebraska
Posts: 210
Quote:
Originally Posted by MJK View Post
Most the large companies in my area are bidding this way. They are cheap because they just want to recover there overhead. The problem with that is it will come back to haunt them. They are only driving the prices down and making the industry less profitable.

It's almost a backwards way of low-balling that people complain about in my opinion.
The only way your customer would know that you gave them a "low ball" price is if you told them.
Since no two projects are the same and you shouldn't be bidding by the square foot, neighbors wouldn't be able to compare prices.

DVS, if one person types it out of five that reponded i'll go on the assumption that there are more viewing this thread that think it.

I do use the Vanderkoi system.
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