How do they do it?

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laketime

laketime

Senior Member
So I bid an 1850sq ft house sort of basic but had some small extra stuff nothing too pricey. I came out with 10k for a price. The GC calls me and tells me the other guy I bid against was $6500 lower than me. I don't know how these guys can even make any money to live let alone stay in business. Anyone else seeing low prices like that?
 
laketime said:
So I bid an 1850sq ft house sort of basic but had some small extra stuff nothing too pricey. I came out with 10k for a price. The GC calls me and tells me the other guy I bid against was $6500 lower than me. I don't know how these guys can even make any money to live let alone stay in business. Anyone else seeing low prices like that?
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Just ask the GC the name of the EC that gave you the price, I bet he has memory problems, they just throw the I have someone cheaper line to see if you will cave, they find it works with a lot of EC's , and then you have the EC's out there working for wages with little or no insurance, and just happy watching someone else make money.
 
I don't worry about it too much. If someone wants to work their butt of going broke, I'll let them.

I've bid jobs for 28K, and lost to a 6K bid.
 
480sparky said:
I don't worry about it too much. If someone wants to work their butt of going broke, I'll let them.

I've bid jobs for 28K, and lost to a 6K bid.
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I agree!!!

It's never going to change, so why worry about it!! By the way, I don't call them EC's I call them IC's=idiot contractors---if they are indeed licensed at all!?
 
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laketime said:
So I bid an 1850sq ft house sort of basic but had some small extra stuff nothing too pricey. I came out with 10k for a price. The GC calls me and tells me the other guy I bid against was $6500 lower than me. I don't know how these guys can even make any money to live let alone stay in business. Anyone else seeing low prices like that?
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I've had the same thing happen to me. The funny thing is they are a contractor from about an hour ride away.

I don't know how they could possible make any money.
 
Maybe they have some system of wiring you are not aware of, are so efficient they can do it in a day, pay peanut or just use slaves, have free material written off as a loss from previous job. (Had that happen.... Competitor came up with price lower than our material cost - later found out they respec'ed equipment to what they had...)

Or the owner is being charitable to his crew to keep them employed at a loss. And may have even made an estmating mistake in doing so...

The GC is BS'ing you... Or he got a contract with a price qualification he didn't read - or craigslist hack...
 
e57 said:
Maybe they have some system of wiring you are not aware of, are so efficient they can do it in a day, pay peanut or just use slaves, have free material written off as a loss from previous job. (Had that happen.... Competitor came up with price lower than our material cost - later found out they respec'ed equipment to what they had...)

Or the owner is being charitable to his crew to keep them employed at a loss. And may have even made an estmating mistake in doing so...

The GC is BS'ing you... Or he got a contract with a price qualification he didn't read - or craigslist hack...
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Or, as mentioned before, the 6?K price is all smoke and mirrors.

Either way, (and I know work is work these days), but are some customers worth it?

I mean, if someone is going to hire you based solely on your (low) price, is that someone you want as a regular customer?
 
it's ugly...followed up on 2 small quotes today...one for $2300, one for $3k...$2300 was for a 12 circuit lighting contactor in a trucking depot, 480V and literally a certain death for an unskilled guy due to the existing panel and switches...etc..someone jury rigged it for god knows how much and the customer was content...

$3k was to replace 2 parking lot poles - 20'....remove and reuse shoe box...one pole was knocked down and the base bolts were screwed up.

all i know at this point, is that the work was done at a 'substantial reduction' of my price...

oh well...depressing that there are so many idiots out there screwing up the system...you do tend to want to find them and beat them out of their miserable existence....

wish I could laugh it off...but, i don't see it changing...especially with the rhetoric coming out of washington...

anyone hiring?
 
laketime said:
The GC calls me and tells me the other guy I bid against was $6500 lower than me. I don't know how these guys can even make any money to live let alone stay in business.
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That was me, yes I was the one to bid against you. There is a slight catch to the agreement that the GC didn't tell you about. Sure I agreed to wire the house for $3500.00 but I want all the money up front in cash with no receipts given. There will be no contract or paper trail and no witnesses. Actually I'm leaving town and just need traveling money.:grin:

Hang in there the job will be up for bid again as soon as they try to find me. :grin: It's happened before.
 
you can't even sweat that job - yes it does suck that those that actually pay decent wages, have all licensing and insurances, have empoyees on the books, pay benefits to employees including vacation, retirement match, and holidays, do great work, are reliable and are professional - have to compete with people who just don't know what they are doing.

Of course we all got in the game at some point and were newbies, but when you stick around for years - you must be doing something right. I'd like to cry sometimes at the prices I see - but I end up laughing - good luck I say - to the GC, the owner, and the EC. Could I afford to shave my prices in tough times? sure - like 10 % but you will ruin your company if you chop 30% off your prices.

A lot of the times the rediculously low prices aren't the ones finishing the jobs - I wish all jobs over $1000 required a performance and payment bond - it would force people to charge more because they will be out of business very quick if they don't finish a job. Their bond will get called in and they won't get any more bonds - good bye cheap guy.
 
I guess my opinion on this is a bit different than most on here, but 10 grand for an 1850 sq ft house with no bells and whistles IS a ridiculously high price. I would like to make $140.00 an hour on a commodity installation too, but I would not be upset if I did not get it at that price.
 
Lost a remodel job by about 50% recently, came with detailed prints and all. I knew one of the subs and yep it was done for 50% of my price, exactly the way the print showed. EC drives a 1985 rusty Ford Van, I wonder why?
 
Ever hear the expression "Let's run it up the flag pole and see if it flies ?" That's what the GC is doing to you.

I had a GC do that to me once. He complained that his regular EC wasn't reliable, didn't show up when he was supposed to, didn't do a good job, etc. Long story short he asked me to bid on a new house. My price was about $14K. He came back and said his guy was wiring these houses for $6K. I told him to go out and hire a limo, pick up the EC, take him to dinner, drive him home and tuck him into bed and stop complaining.
 
goldstar said:
He complained that his regular EC wasn't reliable, didn't show up when he was supposed to, didn't do a good job, etc.

He came back and said his guy was wiring these houses for $6K.
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"The food is terrible! And, the portions are too small!" :roll:
 
goldstar said:
Ever hear the expression "Let's run it up the flag pole and see if it flies ?" That's what the GC is doing to you.

I had a GC do that to me once. He complained that his regular EC wasn't reliable, didn't show up when he was supposed to, didn't do a good job, etc. Long story short he asked me to bid on a new house. My price was about $14K. He came back and said his guy was wiring these houses for $6K. I told him to go out and hire a limo, pick up the EC, take him to dinner, drive him home and tuck him into bed and stop complaining.
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Funny thing I discovered when I was invited by a GC friend to an annual dinner meeting, no one else at the table new I was an EC, and as they started talking, I got a great education, they talked about dealing with subs, and they all agreed the EC's were easy to cave on price, and they can play games with the EC's the other subs would walk, and if you played games with them they might not come back. It's sad we are looked at that way
 
B.S.ing or is it the local using target money to get the work? [ if you belong to the local you know what target money is] I know our local is going after more resi work in an effort to get the guys working.Makes it hard on the non-union contractors.
 
satcom said:
they all agreed the EC's were easy to cave on price, and they can play games with the EC's the other subs would walk, and if you played games with them they might not come back. It's sad we are looked at that way
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I think it's just the law of supply and demand. There so many people wanting into the electrical contracting business and there are always plenty of new ( green ) ECs so it's easier for the GCs to shop around.

In areas like this where only the owner is required to be licensed one master can put 50-100 people to work under one license and only a few of them need to have any real skill level. It can be easier to find those wanting to do electrical than finding carpenters or masons or even dry wall crews.
 
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