Contractor Pricing?

Question

I am a Honest Contractor that just wants to make a livin. I Know that there are Ripoff contractors everwhere and doing shoty wor. Why Do Customers caal me for a price and Make me Feel guilty about the Price? They drive me to give my work away.
I am a contractor / Handyman . I mastered the work However I am Having a real Problem getting My Pricing in line. This Business is unlike service Businesses That have price lists. Every job is unique. Last week i gave a price to lay a floor of 700.00 and the cust said OK but My price was a bit high. Well I could not Do his floor due to I was too Busy. I was on the job site when the new Floor Guy cane to do it and He charged Him 1875.00 for what I was doing it for 700.00!!!! . When I go out to give a price The customers always say ( I am getting Many prices) I thank they just do this to Make me give a very low Price....

Answer 1

First of all, this is business. You seem really emotionally wrapped up in it. I would advise you to get a bit colder and make business impersonal. What's the worst thing that a person can say? "No, sorry, I didn't select you".

Also, there are times that people don't always go for the cheapest bidder. They want references and experience. They want to know you will show up when you say you will (I've heard that nightmare before too). Plus, many time the cheapest bidder - if it is too cheap - may be cutting corners (or give the impression that they are cutting corners) and scares the customer away.

1) Don't get personal....bid what you think is correct. Study the market and your competitors (I just had a radon system put in and my contractor wanted to know what his competition was bidding - so he asked me!)
2) Learn as you go. As you get more experienced, you'll learn the ins and outs of the business more and how to be successful. But I'm sure you will make mistakes along the way. Just learn from them.

Answer 2

Yes, I worked for a company where we had the same problem. After we retired and went out of business - the customers now pay the full price. One of the things you can do is make up a list of prices. Have a friend call one of your competitors and pretend they are looking for a contractor to do a job. That is one way you can obtain a price. Then some of your competitors must have price lists for their customers which could benefit you. Figure what it will cost you to do the job and add on a percentage of profit. Come up with a formula for pricing your work - one which will keep you in cash & not cost you. Is there a trade association or your suppliers would know prices for your area. They know those things because they have prices for the store as well as jobber prices. GOOD LUCK. Stop giving it away.

Answer 3

i own a small excavation company with 4 employees in ct. the best way i find to price a job is to figure the material, a given it's all about the cost of said materials, and figure out my labor, if it is going to take me 16 man hours to do the work, i figure the cost of the hours should be 40 for laboring no tools, 45 for labor with tools. these figures represent my hourly wage, tax, work mans comp, profit, and over head. most small business don't take into fact these cost that is why you are much lower than your competition.
i suggest going out and buying an rs means cost data book, it will break the cost down for you so you know it your really making money or spinning your wheels.
don't ever be afraid if some one says i getting many prices. that is why their is competition, stand buy your work and the quality you give them and you'll make money. If someone wants to go with the lowest price, the get the lowest quality.. Just remember you set your price at what you feel comfortably with, if their not fine with that move on to the next job.... good luck

Answer 4

I am also a Contractor and have found the best guideline for coming up with what I should charge is as follows. Example: I'm ask to Bid on the price of building a 16'x20' Pressure Treated Pine Deck. I total the cost of material plus tax.I take that figure and double it feeling my labor is equal to the cost of material. I then add 15% for Handling that material.Example: Parts cost $1,000.00 -tax is est. $70.00 x 2 = $2,140.00 + 15% of $1,000.00 =$150.00 total bid amount = $2,290.00

Answer 5

they are always looking for the lowest price.
They think they can get you to knock of more money if they give you the guilt trip.
You need to stick to your guns.
Good luck to you.