Are prices at an all time low?

[Dannyspark]

Hey chaps,

I know we often have discussions about pricing but to me it seems that prices just seem to be getting lower and lower with no end in sight.

Take this recent quote I did and I'd be interested in your views / prices for similar:

Rewire of a 17th century Wiltshire cottage (actually two knocked into one), 4 bedrooms, 3 bathrooms, lounge, dining room, kitchen, family room, kitchen and utility, new service access point, tails, CU, bonding , etc. 30 inch stone walls between the two cottages, joists going in all directions and family living in it to top it all off. They want a full rewire as its all in VR at the moment, 1st fix has to be divided into two stages as they need time to relocate their living arrangements! Sockets and downlighters all over the show, cooker, shower and exterior lighting/power. Aprox. 150 plus fittings in total.

They were happy for the work to be done ad hoc so gave them a big discount as would've been able to fit it in around other jobs and quoted £5000 plus materials. Even threw them another bone and said if they did all chasing out, drilling and sinking back boxes I would knock another £1000 off meaning the quote was £4K plus materials.

Got a call back today saying thanks for doing the quote but we've gone with someone cheaper! :cuss:

Am I way off the mark here or has pricing just gone through the floor at the moment. How are these guys making money, it just seems crazy to me? My price barely covered my business running costs and gave a fair wage for me and the lad, whilst on down time from other work.

If this quote is genuinely too high I think it must be time to look for something else to do.

Your thoughts appreciated.

Danny

 

[oldtimer]

I think you have had bad luck with a couple of bargain chasers. Remember they take the same attitude to you as they do when they want to buy a big American fridge freezer. So they may show your quote to another spark and so on. You just have to give your best quote if you go too low then you are doing it for trainee wages or worse they ask you for a cash job but thats your head in a noose not theirs or in other words welcome to the world of business. Thing is stick to your guns without being off hand about it explain to them you have priced for quality equipment and dont get caught in a bidding war dont chase the job let them get back to you .

I have discussed this before on this forum you will never beat the customer who will spend £25k on a car but will skimp on electrical safety

 

[D Skelton]

It's not just you mate, we recently quoted for a 3 bed semi rewire, very basic, 3 points in each room, shower and cooker circuits, cables chased in and making good, cheap fittings plus power to the garage. We came in at under £2.5k and was beaten by someone who was £800 cheaper!!!

The customer asked if we could beat that to which I replied "There's no way we can carry out a full rewire on a three bed semi for £1700 without cutting some really serious corners!"

I get very short tempered with customers like this now, the ones that mess you around and care more about their wallet than their childrens safety. As I left I said to him "You've got our details, so when you get problems, we'll be happy to sort them all out for you. You know where to find us."

I don't expect I'll ever hear from him again.

For the best I say! Customers like this are best avoided!

 

[DurhamSparky]

i never change my price...! all my quotes are that! QUOTES!! they are the best possible price i can give at that time..!

 

[GLENNSPARK]

i think its ignorance that drives this as well though......they dont know the ins and outs of install......all they know...and care about is they close the switch....let there be light........she turns the switch...and the washing gets done....they get home on an evening....and the telly goes on....and thats what it is......

 

[GLENNSPARK]

in the interim period...before all these lights n switches n all that......we have to do all the max. demand calcs....and how many points...the method of install.....it just goes on.....thats of course before you even start...

 

[oldtimer]

I agree with D Skelton and Durham although one thing is I will not fight with the customer so when they say
I got it £100 cheaper what are you going to do about it
I always say O well then good luck then and thanks for allowing me to quote for the job.
Do you think I have been given a good quote then they say
I reply well its not for me to say all I know is that I have quoted for quality equipment and that I cannot do it for less.
If I get any problems would you mind looking it over for me.
Now inside I am Bl**dy raging but I reply O I am sorry I cannot get involved with this as the agreement is between you and a n other.
I dont understand your attitude here I would have suspected that you would have wanted to compete with the lower quote.
Now I am thinking does this compition exist but reply as I have said I cannot get involved.

Sometimes 3 months later I get a call asking me to come and have a look as it is not working.
this is when I say I am sorry but as I have said before I cannot get involved but if you dont get any satisfaction you can call me again but I will have to charge you.
Then they explode over the phone and I have to remind them that they should vent their anger on the guy who did the job.
Then they slam down the phone

 

[GLENNSPARK]

I agree with D Skelton and Durham although one thing is I will not fight with the customer so when they say
I got it £100 cheaper what are you going to do about it
I always say O well then good luck then and thanks for allowing me to quote for the job.
Do you think I have been given a good quote then they say
I reply well its not for me to say all I know is that I have quoted for quality equipment and that I cannot do it for less.
If I get any problems would you mind looking it over for me.
Now inside I am Bl**dy raging but I reply O I am sorry I cannot get involved with this as the agreement is between you and a n other.
I dont understand your attitude here I would have suspected that you would have wanted to compete with the lower quote.
Now I am thinking does this compition exist but reply as I have said I cannot get involved.

Sometimes 3 months later I get a call asking me to come and have a look as it is not working.
this is when I say I am sorry but as I have said before I cannot get involved but if you dont get any satisfaction you can call me again but I will have to charge you.
Then they explode over the phone and I have to remind them that they should vent their anger on the guy who did the job.
Then they slam down the phone

so does the inner rage show itself then when they ask you if you`l cert it...as the original `sparky` has run off.....lol....

 

[needasparks]

I bet the spec was a lot lower on the job that won.
I hate being the first to quote on a job like this as the customer wants everything bells and whistles and gets carried away with it all then finds the price and drops the spec and guy number two gets it.
I tend to drag my heels on visiting to quote and try my best being the second quote when a one off loads of labour job comes up, does mainly work for me and does work.

 

[Marvo]

I don't look at quotes on a one by one basis, it's too frustrating I prefer to take a more holistic view and keep an eye on the percentage of quotes we get accepted every few months. If we get more than 30% accepted I tend to adjust prices upward slightly, likewise if over a few months we only get 10-15% accepted I adjust prices down.

Obviously there's limits to the adjustments but touch wood it's worked well and we have an overall 25% hit rate. We also don't work in the domestic environment so things may be different from sector to sector.

 

[Dannyspark]

Cheers chaps. thanks for the input.

Will stick with it for now.

 

[Dcf]

I'm afraid that things are at an all time low.problem is larger contractors do not have the kind of jobs they need to keep the lads going on their books at the moment.so it all comes down a level or 2.jobs they wouldn't have looked at before,are all of a sudden quite attractive to them.usually on a rock bottom price to get the foot in the door and hope to make the margin up on extras/variations etc.ive got one to price against 2 biggish local contractors and I know for a fact it will b suicidal rates I'm up against.will I bother even pricing....who knows.the general public are getting harder to deal with tho.went to a extension last week.had given the boy a rough guide price on the basis of his b/w drawings.course when u get their he wants the full Monty then picks ur brains on things,email a proper quote not a cheep heard since.it is the old chestnut though detailed quotes that get shopped around to the lowest bidder or a pile of cack on a smoke packet and leave yourself wide open to a shafting?

 

[needasparks]

Don't think it matters at the moment which sector, they are both as hard to get hits.
Domestic don't want to spend as it means a smaller telly and the ind/com side only go for the cheapest quote as they don't have the money to spend. Think at the moment you just have to show your singing their song and you get the job if its in budget. strange.