How can people quote so low?

[Gavin John Hyde]

Went to price up a job this morning to install 6 downlights in a dining room.

Nothing too complex, with nice access to the extension roof space via a small access hatch to make the install relatively straightforward. would be able to work directly above the joists and come down through the ceiling.

i quoted what i thought was a good price, given that there is little in way of drilling or effort to run new cables., the guy then tells me my quote of £200 for labour and parts is a little high.

The lights the customer wants are fire rated and come in at £80 or thereabouts for the 6 plus junction boxes, cables etc and making good the hole from the existing light pendant. I quoted for 2 hours labour at £40 for 1st hour 30 for 2nd. factor in parking in the area(residents parking scheme you have to pay for permit from council), diesel and tax, NI, insurances etc.. it doesn't leave much.

He has had a quote off a eastern european spark (apparently fully qualified), who has said he will do it for £140 all in.!! i cant see how the guy is going to make a living... i told the guy that if he wants to pay that then i can't do the job.

Anybody else find they are up against some really crazy quotes that you just can not compete with... it is a complete race to the bottom. There is a bloke round here offering CU changes for £150..!! i am assuming there is no testing no certs.. no comebacks... its become a crazy world.

 

[davesparks]

If you don't do quotes, even for kitchen fitters, all I can say is they are probably providing a quotation to their customers on your behalf.

It is very common for builders to make a mark up on other trades work. Last builder I did work for insisted I sent my invoice to them direct, and got in a right paddy when I later did some extra work for the same customer and invoiced them direct, almost accused me taking money out of his mouth. Told them his fortunes, and never worked for them again.

If you happy to do that, and making money, jobs a good'un

I don't know your exact arrangements, but when I have subcontracted to companies (builders or otherwise) I have always been working under a subcontracting agreement that includes a clause stating I cannot work directly for any of their customers for a certain period of time after the job completes.

I think I'd be on the side of the builder, you've done work for them and then gone on to work directly for their customer, I'd be pretty irritated if someone did that to me.

 

[Octopus]

I don't know your exact arrangements, but when I have subcontracted to companies (builders or otherwise) I have always been working under a subcontracting agreement that includes a clause stating I cannot work directly for any of their customers for a certain period of time after the job completes.

I think I'd be on the side of the builder, you've done work for them and then gone on to work directly for their customer, I'd be pretty irritated if someone did that to me.

not many local businesses have this as a clause in my experience... who's to say that the customer hasn't fallen out with the original contractor and won't have them onsite again but are happy with specific sub contractors....

A mind field IMHO

 

[vjsmarwick]

If you don't do quotes, even for kitchen fitters, all I can say is they are probably providing a quotation to their customers on your behalf.

It is very common for builders to make a mark up on other trades work. Last builder I did work for insisted I sent my invoice to them direct, and got in a right paddy when I later did some extra work for the same customer and invoiced them direct, almost accused me taking money out of his mouth. Told them his fortunes, and never worked for them again.

If you happy to do that, and making money, jobs a good'un

I normally bill customers direct even for the jobs I do for the builders my reputation for good value for money and a good job is all I need I bill for what I do I don't make massive profits but enough to live on ! I have a health condition which means I'm not as quick as most but my charges allow for this but it seems people are willing to wait just to have me do their work ! I have only had one person that quibbled the bill and kept £50 off the final bill but will never have work done by me again ! Not bad in almost 35 years.

 

[Midwest]

I normally bill customers direct even for the jobs I do for the builders my reputation for good value for money and a good job is all I need I bill for what I do I don't make massive profits but enough to live on ! I have a health condition which means I'm not as quick as most but my charges allow for this but it seems people are willing to wait just to have me do their work ! I have only had one person that quibbled the bill and kept £50 off the final bill but will never have work done by me again ! Not bad in almost 35 years.

Sorry to hear of your ill health, currently I'm just limited by my age (fingers crossed). For me, I usually do for someone once, although I have gone back to some of my domestic customers, when they have moved house for example. Recently, probably just co-incidence, I've had my quotations questioned. To which I've replied, get someone else to quote you. In the domestic market, people seem to expect the work to be carried on the minimal of margins, but expect you back at the drop of a hat if there are minor imperfections. I blame Google!

 

[davesparks]

not many local businesses have this as a clause in my experience... who's to say that the customer hasn't fallen out with the original contractor and won't have them onsite again but are happy with specific sub contractors....

A mind field IMHO

It doesn't matter if the customer has fallen out with them or not, if you've signed the agreement then you face legal proceedings if found out.

 

[vjsmarwick]

It doesn't matter if the customer has fallen out with them or not, if you've signed the agreement then you face legal proceedings if found out.

I would never sign anything that could restrict who I could work for but I guess living on a group of islands things are done completely different ! Here most people knows everyone else. Only big companies advertise not which I am one ! Here people trust each other because there is no where to hide and if you don't do a good job you just wouldn't last here. With just 20000 population on around 25 inhabited islands there is loads of island work available for those who don't mind being away from home ! Always loads of work as our local council put out their contracts in quiet times new housing popping up all over ! Price of living here is relatively high considering what's here but I can't picture me living anywhere else ! Winter lasts about 9 months of the year summer about 2 or 3 weeks no nightlife unless you want a ----y smelling nightclub but the pubs are good and plentyful and crime rate made up of minor fighting and driving offences so pretty much paradise for people like me who have spent a life time here lol

 

[tom porter]

just been under quoted by £1000.00 for new 3 bed house installation

 

[Specialist]

just been under quoted by £1000.00 for new 3 bed house installation

Like a smack in the teeth isn't it ?

 

[Leesparkykent]

Potential new customer has been trying to play me off against another firm....other firm has quoted £7600 for a 185 point new build in brushed steel accessories and an intruder alarm on top....there are 5 houses....my price £11200 per house.

 

[vjsmarwick]

Hi Vincent,
How's tricks?
Would you manage out to Westray with me on Tuesday at 0700 and back in at 14:30 and fit a new fuse box check wiring and get me a certificate?
Cheers
Christopher
Lol this is the kind of messages I get no mention of how much just can you do it nice and easy ! One of my former customers friends

 

[Specialist]

To be fair Lee I'd hate to be quoting for work nowadays. It's way worse than it was, even 5 years ago. I think some of them just pull numbers out of their backsides.

 

[telectrix]

Potential new customer has been trying to play me off against another firm....other firm has quoted £7600 for a 185 point new build in brushed steel accessories and an intruder alarm on top....there are 5 houses....my price £11200 per house.

your price looks spot on to me, if anything, a bit low. how he can do 7600 is beyond me.

 

[Leesparkykent]

your price looks spot on to me, if anything, a bit low. how he can do 7600 is beyond me.

And me mate....These people can't have any business sense at all and won't last very long as they will be busy fools earning pittance.

 

[Cadgey123]

And me mate....These people can't have any business sense at all and won't last very long as they will be busy fools earning pittance.

Potential new customer has been trying to play me off against another firm....other firm has quoted £7600 for a 185 point new build in brushed steel accessories and an intruder alarm on top....there are 5 houses....my price £11200 per house.

I am close to your price too. £60 per point and that's to supply cable, CU & white accessories.
I wouldn't entertain any of these jokers doing it for Ridiculous prices. Although each to their own if they can make money at those margins.

 

[Midwest]

I don't know your exact arrangements, but when I have subcontracted to companies (builders or otherwise) I have always been working under a subcontracting agreement that includes a clause stating I cannot work directly for any of their customers for a certain period of time after the job completes.

I think I'd be on the side of the builder, you've done work for them and then gone on to work directly for their customer, I'd be pretty irritated if someone did that to me.

Exactement; I'd say 3 1/2 months after doing the original work, is sufficient space in time for the customer to contact me direct.

Fortunately I do very little sub-contracting for builders, although I did refer a customer back to my original electrical contractor, many months after doing some work at this particular customers property. I have some scruples there.

I just feel that most of these builders make a mark up on my work, with no real input. If I worked regularly for a particular builder, I wouldn't mind the mark up, as it would provide me with regular work, or if the builder provided some form of warranty to the customer. They don't, they just make the customer pay more money, for no particular gain.