Wow some people have nerve

[growler]

Secondly, (almost) no-one "needs" electrical work done to survive. But they ain't gonna survive without groceries, so groceries will pretty much always have a higher purchasing priority than electrical work.

The grocery business is pretty darned competitive. People don't understand how it works. Grocery stores sell what known as "Staples" or thing needed just to survive at pretty close to cost. They do need to get you in the store.

They make their money when you buy other items such as soft drinks, beer, wine, candy or chips. Things that you really wouldn't have to have to live but you may have the money to purchase.


I just bought "Doritos" chips at a buy one , get one free sale, can you imagine the profit when paying the regular full price. I don't know if anyone notices but they almost never have the chips and the dip on sale at the same time.

 

[220/221]

Two years ago I would have told him to call someone else.

Today I would say, I can do that.........if you pay cash.

 

[480sparky]

I'd respond to that in two ways.

Firstly, Wallmart. Remember what it was like before Wallmart? All those mom and pop stores? Where are they today? The stores that have costs and overheads, just like every other business. The customers said "charge me less", and someone did.

Secondly, (almost) no-one "needs" electrical work done to survive. But they ain't gonna survive without groceries, so groceries will pretty much always have a higher purchasing priority than electrical work.

WalMart? Fine. Go to WalMart and tell them you'll give them $1500 for that $1900 big-screen TV. Lemme know how that works out.

 

[iwire]

People don't understand how it works. Grocery stores sell what known as "Staples" or thing needed just to survive at pretty close to cost. They do need to get you in the store.

It is actually an amazingly complicated business. A large grocery chain is more like a shelf space rental business. The venders fight for space and have to do a lot of the work of stocking the shelves themselves.

 

[mcclary's electrical]

WalMart? Fine. Go to WalMart and tell them you'll give them $1500 for that $1900 big-screen TV. Lemme know how that works out.

I'm COMPLETELY astonished that anyone would EVEN HINT to the fact that was should model our company financial habits after the very company that has single handedly ruined our economy and homeland production as we know it.

 

[cadpoint]

I really like it when everyone talks money! Don't ask me why, I don't have any, nor any vested interest in this OP! But the the theme is to got the job.

Be it the the sale or the pitch of it or lack or understanding of it, I still eat it up!

But it is, in most cases not to be under-sold in any either case! 3% of the price of a job would not kill me; but yes I guess I'd feel the sting.

I do truely agree with most of the statements made... FWETW...

 

[c2500]

WalMart? Fine. Go to WalMart and tell them you'll give them $1500 for that $1900 big-screen TV. Lemme know how that works out.

I have never tried that at Walmart, but I have, on many occasions gotten greatly reduced prices at Home Depot or Lowes. I lose nothing by asking. Halo 6" can lights for less than $2.00 each. Adjustable one and two gang metal boxes for $.01 each. (I am just about out of them now...darn.) I have also been told "no" in very certain terms. There are alot of businesses that will cut prices.

c2500

 

[LarryFine]

I'm COMPLETELY astonished that anyone would EVEN HINT to the fact that was should model our company financial habits after the very company that has single handedly ruined our economy and homeland production as we know it.

The US government?

 

[480sparky]

I have never tried that at Walmart, but I have, on many occasions gotten greatly reduced prices at Home Depot or Lowes. I lose nothing by asking. Halo 6" can lights for less than $2.00 each. Adjustable one and two gang metal boxes for $.01 each. (I am just about out of them now...darn.) I have also been told "no" in very certain terms. There are alot of businesses that will cut prices.

c2500

Asking is one thing.

...............I got an email from him this morning that read, in part, "You do the job as you listed for $1850 and throw in for free the GFI outlet by the stairs"..........

Demanding is quite another.

 

[kwired]

I just priced a job for a homeowner. My total quoted price came to $1910 and I also had a separate price in there for a new GFCI receptacle to be pulled off of the panel.

I got an email from him yesterday saying it broke his budget and what could I do to try and get it closer to $1500. I made some suggestions for things we could delete.

I got an email from him this morning that read, in part, "You do the job as you listed for $1850 and throw in for free the GFI outlet by the stairs".

I can understand trying to haggle and seeing if I'll bite on a lower price but I really think it takes nerve to offer me a lower price and on top of that ask me to throw in something for free. What am I a car dealer? Do you want the undercoating with that? How about this I'll throw in the clear coat on the paint for $99.95?

Sheesh.

A Lincoln is still going to cost more than a Tarus even after haggling the price down.

If he wants to pay the Tarus price then tell him what that price gets him Vs the Lincoln price.

If you can't convince him that your doing him a better service than your competitors and you are making little or no profit then you need to spend time finding customers that you can sell your service to instead of wasting it on non profit jobs. I don't care how slow times may be, I still have plenty of things that need to be done that are not profitable to me and would rather do them than work for someone that is not going to earn me something anyway. Let someone else go broke doing these jobs while I try to get the ones that I want to do.

 

[dbuckley]

I'm COMPLETELY astonished that anyone would EVEN HINT to the fact that was should model our company financial habits...

I'm not at all suggesting you should remodel your company's financials.

I'm saying customers are remodeling (nice word) their buying habits. The global financial crisis has turned many sectors from a sellers market to a buyers market.

You, of course, have the choice of if you want to respond to that, or not; you can just walk away from the pushy customer.

...after the very company that has single handedly ruined our economy and homeland production as we know it.

Walmart didn't destroy the economy - customers did. Despite the fact that all the shoppers knew they were killing the stores that served them (and their parents and their community) well for years, and destroying the jobs of their neighbours and family members in manufacturing, still they turned their back on the little stores for the lower price at the big tin box. Customers will do that every time. But it's never the customers fault.

 

[bpk]

Im not a large contractor nor have I had a business long, but one thing I have learned is to not take things personal, its just business. If you can do the job then do it, but dont let home owner price haggeling get to you otherwise you will eventually go crazy. Just imagine how some used car salesman feel at the end of a week.

 

[iwire]

Asking is one thing.



Demanding is quite another.

So walk at that point, if that is what you feel is right but I will never consider a customer wrong for trying to reduce the price, as evidenced by this thread many times the price gets reduced.

 

[480sparky]

So walk at that point, if that is what you feel is right but I will never consider a customer wrong for trying to reduce the price, as evidenced by this thread many times the price gets reduced.

You're preaching to the choir here, Bob.

 

[dmagyar]

Couldn't get a read on them

Couldn't get a read on them

So, what does the customer say about the lighting now?

I called to follow up on my bid, found out that they had gotten the job completed, asked the question on what they ended up with. I don't know how well they like the reduced lighting as they didn't mention anything but it's my guess that when winter rolls around the mistake they made will really set in.

What I didn't mention earlier was that they had just had some really beautiful blue / opalescent granite installed on the kitchen counters, it's dark and with what they have now, not as prominent as it could have been.

 

[laketime]

A Lincoln is still going to cost more than a Tarus even after haggling the price down.

If he wants to pay the Tarus price then tell him what that price gets him Vs the Lincoln price.

If you can't convince him that your doing him a better service than your competitors and you are making little or no profit then you need to spend time finding customers that you can sell your service to instead of wasting it on non profit jobs. I don't care how slow times may be, I still have plenty of things that need to be done that are not profitable to me and would rather do them than work for someone that is not going to earn me something anyway. Let someone else go broke doing these jobs while I try to get the ones that I want to do.

So true, find the right customer. The right customer is the one that doesn't mind paying for quality. To be the "Wal-Mart" contractor just look at the volume Wal-Mart does to make money. Can you do that?

 

[mtfallsmikey]

So true, find the right customer. The right customer is the one that doesn't mind paying for quality. To be the "Wal-Mart" contractor just look at the volume Wal-Mart does to make money. Can you do that?

On Monday I was at the old-school family-owned hardware store in town that I do/have done business with for years getting some machine screws, etc. I saw one of my dad's old low-ball competitors, still out busting butt doing plumbing work at the age of 78. Keep working cheap and you'll be like him. That's why I got out of business.

 

[480sparky]

...........Firstly, Wallmart. Remember what it was like before Wallmart? All those mom and pop stores? Where are they today? The stores that have costs and overheads, just like every other business. The customers said "charge me less", and someone did...........

Keep in mind, low prices is WalMart's business model. When you see their ads on TV, what are they touting? Personal service? A wide variety? Knowledgeable staff? No......... it's all about low prices. Try asking the guy in hardware (God forbid there actually is someone working in that area!) how to hang a ceiling fan.

WalMart didn't just drop their prices because the customer demanded they do so. They adopted it as their business model. And they continually are finding ways to be more efficient, so they can lower prices even more. They call them Rollbacks.

WalMart didn't start out charging the 'going rate' for everything on their shelves. They didn't have droves of customers tromping through their doors demanding they lower their prices. WalMart did that all by themselves. They wanted to be the Low Price Leader from the git-go. And they succeeded at it.

Other companies are countering the Low Price is King mentality. Ever see a Scheels ad lately? They show a person doing whatever sport they enjoy.... hunting, fishing, running, cycling... you name it. It ends up with "I'm Dave, and I work at Scheels". They're not promoting low prices, 'Rollback' or saving you money........... they're promoting service & a knowledgeable staff.

If you want to compete with WalMart Electric, you'll need to cut your rates. But not by simply giving your work away, or working for less..... find ways to lower your overhead. That's how WalMart does it.

Otherwise, stick to working for Scheels Electrical and learn to market the skill and professionalism you have to a customer base who will appreciate it.

 

[Rewire]

We do work for Walmart so I love them, pay fast and well. Low prices are a byproduct of how walmart operates K mart sold cheap also and look what happened to them.

walmart dosen't teachme to be the cheapest but teaches me "how" to be the cheapest.

 

[c2500]

Asking is one thing.



Demanding is quite another.

Touche...

c2500