New contractors popping up all over

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nizak

Senior Member
In the last 3-5 years we’ve had at least 6 new E.C .enter the local market.

A couple of them are decent, the rest are run and gun working for peanuts.

It usually takes a couple years to rinse out the trunk slammers and they can cause alot of disruption in that time.

I lost one builder to it and not the verge of losing another soon.

They take no pride in their work and it’s all minimum code( barely that). As long as it passes inspection the builders love it.

Their pricing is around 30% lower than mine. I can’t cut anymore on material, now it’s getting into labor.

The customers who are purchasing the homes just know that it’s new… and to them that’s all that matters.

Been doing this 30+ years, maybe it’s time to look at putting on a different hat.
 
ramsy said:
Time for the Rat Hat.
No workman’s Comp. Rat
No building permit Rat
No town license Rat
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They are operating legitimately it’s just that they are doing it for nothing.

Hard to compete with someone who’s willing to do skilled work for $20/hr.
 
nizak said:
They are operating legitimately it’s just that they are doing it for nothing.

Hard to compete with someone who’s willing to do skilled work for $20/hr.
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Don't worry, they all go out of business eventually because they don't know how to price. In the meantime, do some commercial work or service work repairing their garbage.
 
They'll go out of business, but someone will take their place, so that niche will always be replenished

I guess they're weeding out customers that only care about price, not quality, for you. Trying to find nice way to describe these customers but can't think of the right word. Bottom feeders? %$&@$#ers? Good hearted thrifty human beings?
 
readydave8 said:
They'll go out of business, but someone will take their place, so that niche will always be replenished

I guess they're weeding out customers that only care about price, not quality, for you. Trying to find nice way to describe these customers but can't think of the right word. Bottom feeders? %$&@$#ers? Good hearted thrifty human beings?
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That’s why I don’t do residential, it’s not as bad on the commercial side, but is still there. I can tell immediately just from talking to a commercial customer, whether they just want it fixed, or just rigged to work. I have plenty of work from just four commercial/industrial customers, that know the value of not constantly breaking down from just “patching” it.
 
nizak said:
They are operating legitimately it’s just that they are doing it for nothing.

Hard to compete with someone who’s willing to do skilled work for $20/hr.
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Recently met an inspector in his eighties, still keeping busy, and trying to trip me up to keep me sharp.

Me & the client were both inspired. I saw light at the end of the tunnel. Something else waiting for me when I’m ready.
 
Same in this area. Just keep doing what you’re doing. I don’t work for any local GC. Maybe one or two time.
Client asked do I do new residential told him no GC are crap and I like making money. He looked puzzled.
Service work is were it’s at. A lot of guys in my area like to do the giant jobs. Me to but one happy Client vs the 6 per day
,pays for itself in the end the whole town likes me from word of mouth.
 
AC\DC said:
Same in this area. Just keep doing what you’re doing. I don’t work for any local GC. Maybe one or two time.
Client asked do I do new residential told him no GC are crap and I like making money. He looked puzzled.
Service work is were it’s at. A lot of guys in my area like to do the giant jobs. Me to but one happy Client vs the 6 per day
,pays for itself in the end the whole town likes me from word of mouth.
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And service work is not so much tied to the economy, as my old boss used to say, “People still have to fix what they have”.
 
Check out my industry in the last 10+ years.

Landscapers have become pool builders. They build for next to nothing but get the hardscape and the landscape work.
The pool work is garbage and a number of them has structural failures. Filtration and circulation systems are all wrong.

Especially during Covid when the demand was high. Good builders were booked, and the bottom feeders were not.

nizak, I can only say stay the course and stick to your guns. I've been in my industry 42 years, and I see rubbish come and go.
I too have lost jobs. It does suck and is frustrating.

Most home builders are looking for the cheapest contractor. They don't value your experience and expertise. Perhaps time to move on from them.

I don't bad mouth other pool builders to clients (only in my head :cool:) I tell them I do things differently with the reasons why and generally the light bulb goes off in their head. Then, they understand your value and are willing to pay for it.



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If a segment is not profitable then don't work in that segment.

Doesn't matter the reason it is not profitable.

It is unfortunate if that segment is the one you personally enjoy, but there is nothing you can do about it if you want to make money and eat.
 
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