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To compromise, or stand pat?

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  • #61
    Re: To compromise, or stand pat?

    that usually only applies to drain cleaners and service plumbers

    new work is clean dirt

    rick.
    phoebe it is

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    • #62
      Re: To compromise, or stand pat?

      Originally posted by PLUMBER RICK View Post
      that usually only applies to drain cleaners and service plumbers

      new work is clean dirt

      rick.
      Duckbutter does mostly service I think. I wouldn't want to bite his fingernails.
      Water Heater Reviews & Water Heater Information

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      • #63
        Re: To compromise, or stand pat?

        you could compromise and tell him you went over your figures again and since he did not take there when it was first offered, some things have changed and it will now be 4% higher than the original bid, you gave him.

        You know fuel, cost of materials, and over head and all, hey the price of primer is sky rocking as we speak. and if you do not jump on the job now and I can get a lock on the materials it may be more next time. this stuff made with oil is going out of sight.
        Push sticks/blocks Save Fingers
        ~~~~~~~~~~~~~~~~~~~
        "The true measure of a man is how he treats someone who can do him absolutely no good."
        attributed to Samuel Johnson
        ~~~~~~~~~~~~~~~~~~~
        PUBLIC NOTICE: Due to recent budget cuts, the rising cost of electricity, gas, and oil...plus the current state of the economy............the light at the end of the tunnel, has been turned off.

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        • #64
          Re: To compromise, or stand pat?

          Originally posted by ToUtahNow View Post
          It looks like some one forgot one of the first rules of plumbing.

          Mark
          Ever see that black ooze that sits in 60 yr old galvy drainage?
          Goes great on whole wheat with a spoon of peanut butter...try it...mmmmm good.

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          • #65
            Re: To compromise, or stand pat?

            Originally posted by DuckButter View Post
            Ever see that black ooze that sits in 60 yr old galvy drainage?
            Goes great on whole wheat with a spoon of peanut butter...try it...mmmmm good.
            I see you're getting your daily allowance of iron.Your mother must be proud.

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            • #66
              Re: To compromise, or stand pat?

              I try to never move on my price. You do it once and people begin to expect it.

              There is a restaurant I do work at, i made the mistake one time, cleared a drain charged him $150 he said it was to much so i agreed on $125. Now if i want to get $150 out of a job i have to tell him $180

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              • #67
                Re: To compromise, or stand pat?

                GLKEARNS.....i am not a plumber. but as an owner of a couple of service based businesses, i would offer the following: 1)where do your prices stand in relation to your competitors? if you are significantly higher than most, you might want to consider how you want to position your business. high end, with the pack or "mr. cheapee bottom feeder go for the volume" market segment. 2) try to stay away from situations where any one customer becomes too large a part of your business. you definitely need to expand your customer base so you can afford to tell any one customer to find someone else.

                as i said above, i am not a plumber. but the most successful plumbers and electricians i know put down their wrenches and wire cutters as soon as they could after they got their licenses and realized that their job was now sales, not pulling wire or fitting pipe. just my 2cents.
                there's a solution to every problem.....you just have to be willing to find it.

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                • #68
                  Re: To compromise, or stand pat?

                  Originally posted by FINER9998 View Post
                  GLKEARNS.....i am not a plumber. but as an owner of a couple of service based businesses, i would offer the following: 1)where do your prices stand in relation to your competitors? if you are significantly higher than most, you might want to consider how you want to position your business. high end, with the pack or "mr. cheapee bottom feeder go for the volume" market segment. 2) try to stay away from situations where any one customer becomes too large a part of your business. you definitely need to expand your customer base so you can afford to tell any one customer to find someone else.

                  as i said above, i am not a plumber. but the most successful plumbers and electricians i know put down their wrenches and wire cutters as soon as they could after they got their licenses and realized that their job was now sales, not pulling wire or fitting pipe. just my 2cents.
                  I agree with all but going by the competitors rates.
                  For all he knows, the customer of his could be comparing him to a 22 year old kid still living at home who just got his license (being exaggerative there).
                  He has NO choice but to know his own cost of doing business, if he underbids by as little as a dollar an hour on labor, he's paying the customer to work, eventually he's out of business.
                  As for the other two points, excellent points...nobody should allow one customer to account for such a large fraction of their income, also as a business owner I know firsthand just how frustrating and confusing it is to juggle sales, estimates, records and bids on top of scheduling a weeks work.

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                  • #69
                    Re: To compromise, or stand pat?

                    When I first started out in HVAC I had a guy come to me an offer to give me an HVAC job on a 4-unit apartment building. He told me what the low bid of my competitor was and I found a licensed co-worker to do the job. I cut my competitors price by a couple of hundred and lost my butt by the end of the project. I later became friends of the lowest bidder and we talked about the job. That's when I learned he bid the job based on surplus material from another job. Just another reason to not bid off your competitors bid.

                    Mark
                    "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

                    I never lost a cent on the jobs I didn't get!

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                    • #70
                      Re: To compromise, or stand pat?

                      just to be clear on a comment i made previously, i in no way meant to imply that one should look at the lowest price of a competitor and as a matter of routine, seek to match or beat it. any market is made up of sellers of products and services and buyers of products and services. it is an extremely unwise business person who disregards knowing what his competitors charge for a similar service or product. without this knowledge, it is impossible to position a product or service within a market. price, as a business variable, is one of many variables that positions a product or service within a given market. the product or service could be targetted to a high end clientelle (one standard deviation or more to the right of a typical demand curve), it could be targetted to the majority of a given market (that nice, big fat middle portion of a demand curve) or it could be targetted to the bottom feeders(one standard deviation or more to the left of a typical demand curve).

                      it is obviously important to be knowledgeable regarding one's own cost structure as this information determines when a business begins earning a profit. but to adopt an attitiude that disregards competitors is to sacrifice potentially greater profitability by failing to exploit competitors weaknesses.
                      there's a solution to every problem.....you just have to be willing to find it.

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                      • #71
                        Re: To compromise, or stand pat?

                        i dont have the business experience as many of the other members do......but since i have plumbing experience and i have done new and service work..i know where your coming from greg........i think personally this gc is just trying to nickel and dime you the best way he can.....and yes if he chooses to have to get his in house carpenter to plumb it so be it but it occurs to me that if it is a job that requires a permit......whos pulling it for plumbing.......and if no one is then id expect a phone call to correct the other guys mistakes ....and yes greg charge for it...you might loose him ....but the other guys r right....there r plenty of guys out there that will pay and wont nickel and dime every bid you put in......as far as the service aspect id be more inclined to be doing more and more service calls until service was 60-80 % of your business....and i bet you dimes to donuts this gc isnt hurting for money ...since hes banging the other trades on the head to come in low and lower still im sure his wife is gonna like that great vacation there gonna go onb with the money saved from not paying his subs!!!!!!!!!

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                        • #72
                          Re: To compromise, or stand pat?

                          Originally posted by ToUtahNow View Post
                          When I first started out in HVAC I had a guy come to me an offer to give me an HVAC job on a 4-unit apartment building. He told me what the low bid of my competitor was and I found a licensed co-worker to do the job. I cut my competitors price by a couple of hundred and lost my butt by the end of the project. I later became friends of the lowest bidder and we talked about the job. That's when I learned he bid the job based on surplus material from another job. Just another reason to not bid off your competitors bid.

                          Mark
                          EXACTLY my point...you never know what kind of overhead or stock costs your competition has.
                          If I'm in a region where one of my competitors is bidding KS faucet installs for $50, I advertize something else (and wait for him to go out of biz).
                          I might be bidding against a larger company the buys Delta faucets in large enough volume to get them at 50% of what I pay..if I try to match his price it comes off my labor and I'd make better money flipping burgers.
                          Greg may have some hard decsisons to make, the fact that Cali allows GC's to do 3 trades is heinous...this is a perfect example of why.
                          The company may likely take over the plumbing, then the local inspector takes on the role of plumbing instructor, it's wrong in my opinion.
                          As I see it, if they don't accept his price, he has NO choice but to diversify into either service or look into a niche that his shop can accomodate.
                          I dunno 'bout him, but I'd have ulcers by now.

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                          • #73
                            Re: To compromise, or stand pat?

                            So, i stood my ground, basically calling their hand. turns out it was a bluff, and were just doing what everyone here has been saying, trying to beat me down to absorb some of MY profits...glad I stood my ground. Thanks everyone.

                            Greg

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                            • #74
                              Re: To compromise, or stand pat?

                              Originally posted by glkearns View Post
                              So, i stood my ground, basically calling their hand. turns out it was a bluff, and were just doing what everyone here has been saying, trying to beat me down to absorb some of MY profits...glad I stood my ground. Thanks everyone.

                              Greg
                              Glad you got the work.

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                              • #75
                                Re: To compromise, or stand pat?

                                Originally posted by drtyhands View Post
                                Glad you got the work.
                                Me too. Slow, does not even begin to tell the story of remodeling/additions up here.

                                Greg

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