Outbid by Big Orange

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kwired

Electron manager
Location
NE Nebraska
Sears used to do the same as HD is doing now, I beleive up to and including building a house.

Many large builders have a set price for electrical, if one electrician won't do it for that price, another one will.


Sears did sell complete houses. I have done work in a home that was my wife's grandparents house - not sure what year it was built but is near 100 years old. If you start taking things apart every piece of lumber has a number stamped on it. Would be interesting to see the plans but they probably do not exist. The numbers on the lumber I'm sure is marked on the plans as to where the board with that number is to be used.

We found a shipping label attached to the back side of a piece of door casing. Did not have a date from what I recall but did indicate it was shipped by railroad from Sears Roebuck in Chicago.
 

Oakey

Senior Member
Location
New Jersey
I did go back today and there estimate looked like this:
x44 Run 4 circuits with 2 GFI in kitchen
x3 Install customer supplied light
I guess they have codes for items in some kind of fashion.
Price $1717.00

I wrote a whole lot more than this and itemized everything, customer said a lot of people came thru, need less to say I was $2,300 but I included a lot more.

I told him beware of upgrades and shook his hand and wished him well. He hired me for his 2 bathrooms on the spot that Big box has nothing to do with.
At least I get to see how they intend to get the HR's over the Sheetrock walls in the garage for that price. :) I know the inspector in this town won't let it fly.

I hope someday I don't see in aisle 5 of big box " 200 amp service $699 ask an associate for details".
 

iam14sure

Member
Location
Allentown
HD Contracting

HD Contracting

I am the electrical contractor of choice for several Home Depot stores and allow me to explain the estimating process. HD offers free estimates. When they get a lead in a store they enter it in their system which I can view from my computer. I go to the job and price it and give the customer the price. My agreement is with the customer, not HD. Basically, HD gets us in the door, for which they get a percentage of the job. Of the jobs we estimate our percentage with Home Depot is around 75%. But we have about the same percentage on jobs we estimate without Home Depot. The main thing is HD does open alot of doors of opportunity for us, which we otherwise would not have.
 

goldstar

Senior Member
Location
New Jersey
Occupation
Electrical Contractor
That sounds like a good deal, I guess. It seems like you have to price the job high enough to get the $$ you want for the job and give HD their vig for getting you in the door. If you're pricing up jobs at your regular price and giving HD a % off that, then they've become your partner (in essence).

I don't mean to come across in a negative way but if this works for you, that's great. From my experience with HD contractors (carpenters, kitchen installers, roofers, etc.) in my area, any contractor that does jobs for or through them do "cheap and dirty" work. I've had to go back on several jobs where the EC slapped the recessed light fixtures in, got paid and couldn't be found thereafter. Light trims were dropping down out of the ceiling; I've had to cut out granite and tile backsplashes because the tile contractor left the receptacles in the boxes and tiled over the receptacle and switch straps instead of pulling out the receptacle and installing the tile up to the edge of the boxes; I've seen cabinets installed where none of the doors line up or are level, and the list goes on. It seems that these guys take the jobs so cheap that they need get in and out fast in order to turn a profit.

From my point of view I don't want to be associated, in any way, with HD as a contractor. They're a sales company and not contractors. They stake their reputation on low prices and making the sale and not repeat installation business. But if it works for you, God bless you and and I hope you're successful.
 

Oakey

Senior Member
Location
New Jersey
Well I also wish all contractors the best everyone has to make a living, I'm just not crazy about HD being my/our competition in the electrical field kind of a David vs Goliath but there's not much I can do about it. I don't know many contractors who could take them on.
I will say that I went out today to buy a backpack blower today and I bought it from the neighborhood guy where normally I'd go out to the highway to look. Meh its a small thing but I see the big guys in a different way now and I'm sure they could care less about me anyway.
 

flyboy

Member
Location
Planet Earth
Well I also wish all contractors the best everyone has to make a living, I'm just not crazy about HD being my/our competition in the electrical field kind of a David vs Goliath but there's not much I can do about it. I don't know many contractors who could take them on.
I will say that I went out today to buy a backpack blower today and I bought it from the neighborhood guy where normally I'd go out to the highway to look. Meh its a small thing but I see the big guys in a different way now and I'm sure they could care less about me anyway.

You don't fight them; you either join them, or learn how to attract the segment of the market that they don't appeal to. I decided years ago to do both.

You perspective needs to change. Instead of being negative and blaming something you have no control over, why not look at it as an opportunity and figure out to make it a positive.
 

r_merc

Senior Member
Location
North Carolina
HD Contractor

HD Contractor

That sounds like a good deal, I guess. It seems like you have to price the job high enough to get the $$ you want for the job and give HD their vig for getting you in the door. If you're pricing up jobs at your regular price and giving HD a % off that, then they've become your partner (in essence).

I don't mean to come across in a negative way but if this works for you, that's great. From my experience with HD contractors (carpenters, kitchen installers, roofers, etc.) in my area, any contractor that does jobs for or through them do "cheap and dirty" work. I've had to go back on several jobs where the EC slapped the recessed light fixtures in, got paid and couldn't be found thereafter. Light trims were dropping down out of the ceiling; I've had to cut out granite and tile backsplashes because the tile contractor left the receptacles in the boxes and tiled over the receptacle and switch straps instead of pulling out the receptacle and installing the tile up to the edge of the boxes; I've seen cabinets installed where none of the doors line up or are level, and the list goes on. It seems that these guys take the jobs so cheap that they need get in and out fast in order to turn a profit.

From my point of view I don't want to be associated, in any way, with HD as a contractor. They're a sales company and not contractors. They stake their reputation on low prices and making the sale and not repeat installation business. But if it works for you, God bless you and and I hope you're successful.

The process to be even considered to be a contractor for HD is tight, meaning you & anyone working in any respect with a HD customer will be background checked. Your Company will be background checked, your finances will be back ground checked. There are no Fly by night contractors. We set the price not HD. It works for us. Yes it is another way to reach customers that otherwise we would never see. Some customers feel comfortable dealing with HD because of the name HD and feel that they will have superior support if something goes wrong with the project. I have been behind another HD EC because of a customer complaint. Needless to say that EC is not happy with me but thats his doing not mine.
 

brantmacga

Señor Member
Location
Georgia
Occupation
Former Child
What sort of percentage does HD get on a remodel job? If it's just a lead and you are still bidding against other contractors it shouldn't be that much.

i'm not sure if this is true for everyone, but here you're not bidding against other contractors. if the customer goes to HD, their contracted EC is the only company that goes on their behalf.
 
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