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To compromise, or stand pat?

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  • Vinko
    replied
    Re: To compromise, or stand pat?

    Originally posted by DUNBAR View Post
    It's a valuable lesson I'm learning real quick; don't bother with the little guy wanting a couple units......think big picture and do big events only, let the little guy find someone else to shop price on.

    The flip side is this: sometimes its better to have 100 little guys as customers rather than 2 big guys. You lose one big guy, and there's 50% of your business. You lose a couple of little guys, less of a problem.

    I am, in one sense, in the same boat as you. I've got some expensive products that I believe few can compete with. We've been in business 41 years, so by now people in the niche field sort of know about us, but still, it takes some education of the customer on the part of the sales man to explain why something that "looks" similar is not similar and deserves to be priced higher.

    That said, and related to my first point, I've sold to a couple of big guys, and its good business, but it's not always all that its cracked up to be. They often pay on time, but the margin isn't as high and I've found that they chisel you on price as much or more than a little guy.

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  • DUNBAR PLUMBING
    replied
    Re: To compromise, or stand pat?

    On my product I'm toting now, I have a considerable interest in it now and I'm getting emails and phone calls, but they cringe when I tell them the price.

    "Some" are telling me that I should lower the price to get that out there so people know.....


    I say no, absolutely no because I'm not going to rent/lease out a $2000 piece of equipment for $100, no way.


    I'd rather let it sit and collect dust before I come out giving good deals. That's would be my fast decline in my second biz. If I'm the only guy doing it, and there's no one else that has it.......price shop away because sooner or later you'll realize how valuable the product is, and what it provides.


    "Too much" is what I'm hearing and I promise with gas prices as high as they are, I could lose my *** real quick when I figure in all the expenses surrounding the delivery, setup, come back and breakdown, get it all loaded back up and off to another.


    It's a valuable lesson I'm learning real quick; don't bother with the little guy wanting a couple units......think big picture and do big events only, let the little guy find someone else to shop price on.

    Leave a comment:


  • Vinko
    replied
    Re: To compromise, or stand pat?

    Originally posted by Devine Plumbing View Post
    Tell them a price and be done with it. There are still a lot of people out there with money and they are not afraid to spend it.

    I agree -- plus if you lower your price too much, you not only don't get a fair profit to which you're entitled, but you leave little room for contingencies...

    Everybody wants a deal, but don't these guys realize that something's got to give when the price is lowered too much. I always want the other guy to make money. If he ain't, then I wonder how he's going to do the job he's been asked to do.

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  • atlas sewer
    replied
    Re: To compromise, or stand pat?

    greg im so glad it worked out for you............but give it a serious thought about diversifying as in getting more and more into service work......it will pay in the long run.......lots of luck....john c

    Leave a comment:


  • DuckButter
    replied
    Re: To compromise, or stand pat?

    Originally posted by DUNBAR View Post
    Yes indeed.


    But before the champagne bottle cork is popped, I'd be getting a backup line of work and quick if the income is needed.


    Nothing lasts forever.



    Let's kill it again!
    Funny, I came back to this thread just to add that...he should learn from this and continue with any back up plans he may have come up with.
    A stunt like that reveals alot about how dependant he is on the one contractor.

    Leave a comment:


  • DUNBAR PLUMBING
    replied
    Re: To compromise, or stand pat?

    Originally posted by DuckButter View Post
    I feel like I just watched the Red Sox win the world series again...thats FANTASTIC news.

    Yes indeed.


    But before the champagne bottle cork is popped, I'd be getting a backup line of work and quick if the income is needed.


    Nothing lasts forever.



    Let's kill it again!

    Leave a comment:


  • Masterplumb
    replied
    Re: To compromise, or stand pat?

    Originally posted by DuckButter View Post
    I feel like I just watched the Red Sox win the world series again..
    Ho-Hum

    Leave a comment:


  • DuckButter
    replied
    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
    I feel like I just watched the Red Sox win the world series again...thats FANTASTIC news.

    Leave a comment:


  • BobsPlumbing
    replied
    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
    GREAT! Glad it worked out. Now try to spread your business percentages & pickup more service too.

    J.C.

    Leave a comment:


  • drtyhands
    replied
    Re: To compromise, or stand pat?

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

    Greg
    I know,I'm sorry.I wish we did not have to go through this "cleansing period",but it will be so much nicer for you after the rats drown out.

    Leave a comment:


  • glkearns
    replied
    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

    Leave a comment:


  • drtyhands
    replied
    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.

    Leave a comment:


  • glkearns
    replied
    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

    Leave a comment:


  • DuckButter
    replied
    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.

    Leave a comment:


  • atlas sewer
    replied
    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!!!!!!!!!

    Leave a comment:

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