Numbers are "too high", should I come down? - Plumbing Forum

**phishfood** · 12-16-2011, 11:06 PM

I just submitted my first bid.

I went and took a close look at the job. Spent over 1 1/2 hours doing a material takeoff and estimating the hours necessary to do it. Got a bid on materials, marked those up 50%, and then multiplied my desired rate by the estimate hours. I even discounted the labor by 15%, because I really would like to get some money in the business account.

The contractor REALLY doesn't like my price. He is going to get another estimate, as from his past experience my numbers are way high, so he says.

I have spent the last hour rerunning numbers. I can cut it some, but nothing close to the area he thinks I should be.

So my question is, should I cut the price as far as I feel comfortable, in hopes of getting the job, or should I just let him get another estimate and call me if he feels the need?

**johnjh2o** · 12-17-2011, 01:07 AM

If you now what your costs are and what you need for profit stick to your price. There will always be someone that will low ball prices. We would call these contractors a**holes. If you try to match his price what does that make you?

John

**speedbump** · 12-17-2011, 01:26 PM

I'm not sure who your giving this bid to, but if he's a builder or GC, he is supposed to beat you up. That's how they get wealthy. I would stick to my price. If you find that your not getting any jobs in a short amount of time, maybe you are too high. But don't get in the position where your doing this for the practice. That's not why we are all in business.

**Chris** · 12-17-2011, 03:02 PM

Don't go any lower then you are comfortable doing the job for. We are not in business to give work away. Often times you will be under bid by larger companies because they go more for quantity then quality. Remember you start a business to profit and stay in business.

What type of work is it? Residential or commercial?

**phishfood** · 12-18-2011, 01:53 AM

Yes, it is a builder. He does new homes and remodels.This one is a remodel.

I guess that I am concerned that maybe I am totally screwing up on estimating, as that is a new thing for me.

But it is not as though I will be sitting home if I don't get this job, as I still have my day job.

I think that I will let him get another estimate. If he calls me back and the next guy has beat me out by a little, then I know that I am about where I need to be. If the next guy beats me out by a lot, then maybe I am off. Either way, it will be a learning experience for me.

Thanks for the counsel, everyone.

**OregonPlumber** · 01-25-2012, 05:31 PM

Hi everyone!

You know what, I had a VERY successful business for over a decade and I NEVER did new construction, only service. I going on record here as saying that I HATE general contractors and hated working for them. This is the way I looked at it. It took me four years to get my Journeyman's license plus two state exams. It took the contractor no time to buy his license and a short 20 question test where I came from.

He, being unskilled labor, doesn't get to tell me, being the skilled labor, how much I get to charge for my work. Screw him. That's like the receptionist telling the Doctor how much to charge for his surgery. In fact with my business I used to routinely tell my customers to bypass the general contractors and instead hire all of the skilled tradesmen themselves and save money.

My customers loved me! (Ha ha ha)

Anyways, I would tell this contractor to take a hike and instead focus on servicing your customers yourself, you don't owe this idiot anything.

My two cents.

Douglas