Pricing residential work? Why?

teco

Senior Member
Location
Mass north shore
I didn't get this kitchen either.

8 receptacles on counter space.
2 receptacles on island. Finished ceiling under island.
1 receptacle and install of micro/hood.
1 receptacle gas stove.
Dishwasher.
Disposal.
Refrigerator w/built in coffee maker.
2 3-way switches w/1 dimmer.
3 1-pole switches.
8 recessed LED cans.
4 under cabinet lights
Demo old wiring.
Relocate and re-feed an existing 2-gang switch box
Relocate an existing oil burner switch box
All home runs are 50' long
Only one wall is being completely gutted. Can make small holes to fish in other walls.
Ceiling is finished and staying intact, all lighting cut in and fished.
Half of the lower level ceiling is finished for the home runs to be fished through to open side.

We were supplying all the materials and labor, including all cans, led trims, DF breakers, etc…

Total bid price 4300.00 completed.

I was the 1st bidder. I was told I was WAY over their budget! Really I asked them, why have me price the work if you already know what it is?
 

JFletcher

Senior Member
Location
Williamsburg, VA
Well, just wait until they get some other bids; they may be calling you back. Fridge with built in coffee maker? Doesnt sound cheap... maybe they blew their budget on appliances like that and exotic stone countertops.

I think too many people see these DIY/Home Improvement shows that show some outdated, ugly kitchen getting completely remade in 30 minutes, and have no idea the amount of time it really takes to do it. That Renovation Reality one is particularly bad; 2 clueless HO have no tools, one week and 7k to completely redo their kitchen. Yeah, right. :roll:

Anyway, w/o seeing that exact kitchen in person, I cant comment on the price, however I think you're in the ballpark based on what you described.
 

Greg1707

Senior Member
Location
Alexandria, VA
Occupation
Business owner Electrical contractor
over budget

over budget

I am usually contacted for a price for electrical work after the owner has already purchased: cabinets, counter tops, appliances, tile and fixtures. Their response to my proposal is always, "that is way over my budget."
If I do get the job, I often find the owners have purchased a Subzero fridge and a Viking Oven.

One of these jobs it took over a year to receive my final payment. I always wonder, did Subzero have to wait a year for their money?
 

cpinetree

Senior Member
Location
SW Florida
I would love to ask some of the people we have quoted jobs to - "Who made your budget? and how did they arrive at the cost to do the electrical?"
We price jobs to do them per the scope of work provided, in a neat workman like order and with the proper permits required.
Too many times we have followed behind the hacky kitchen and bathroom remodelers to find hidden J boxes in walls / behind cabinets. 14/2 on circuits that should be 12/2, No GFCI protection, On and On.

/start rant
The sad part is there is a hack working for wages that will go do that job for the cost of materials and $100 a day.

I really wish more homes would burn down due to poor electrical wiring.
Maybe, just maybe then, people would begin to understand what goes into doing a job that not only looks good and functions correctly but will fail safely and correctly.
/end rant
 

macmikeman

Senior Member
The worst part of it is the whole time you knew that $4,500 was way too low, and you knew you were not going to get all that work done fast enough to cover expenses and make some money at it.........


$7,500
 

teco

Senior Member
Location
Mass north shore
why do you even care? the customer always seems to want a lower price. bid what you are comfortable doing the work for.
We did. For the work listed. Find it hysterical the HO feels qualified to set the electrical budget for the job. Seems to be a common theme around here. Probably should start charging for estimates.
 

JFletcher

Senior Member
Location
Williamsburg, VA
We are doing a kitchen remodel right now. What gets me is the HO always wants to save the drywall at the expense of hours of fishing cable. Drywall is like $11/board. Tear it out, then the electrical bid will be considerably less. The funny thing is they get upset for a 20$ GFCI receptacle, or $30 dimmer, right after telling you a close to five figure cost for their countertops. Maybe I need to make silk screens for receptacles that look exotic; bet I could sell them for more than that GFCI they balked on.
 

petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
We did. For the work listed. Find it hysterical the HO feels qualified to set the electrical budget for the job. Seems to be a common theme around here. Probably should start charging for estimates.
the HO has to make something up just as a starting point.

if you don't feel like it is worth your time to do an estimate just politely decline.
 

JFletcher

Senior Member
Location
Williamsburg, VA
the man has a point.

$6,238 was the correct bid number... you didn't get it 'cause you bid it too low.
haha! Showcase Showdown!

On an aside, would an even bid of $4300 look worse to the HO than say, $4734? A nice even number is nice and even, but a number down to the exact dollar might show more effort on your end in the bid? I dont know the psychology of these things... maybe $4299 would have landed the job?
 

teco

Senior Member
Location
Mass north shore
the man has a point.

$6,238 was the correct bid number... you didn't get it 'cause you bid it too low.
Respectfully, you mean that is the correct number using your system. You mean the bid is too low for your business. Anyway, her kitchen designer got someone 1K cheaper than us. I wished her luck.
 

edward

Senior Member
Just because they said they have someone cheaper it does not mean you CAN NOT learn sales and sell your services at higher prices.
You have motel 6 and the Four Season Hotel that is sold out 6 to 12 months out.

If you are interested IM me i will send you info on sales training. But it will take time to learn, practice and master the system.

Sent from my SM-G900V using Tapatalk
 

edward

Senior Member
Look at it this way:

What is it that the fridge/coffee maker manufacturer, the 4 season hotel, the ritz carlton, Apple, Samsung, Mercedes and other high end providers do to sell premium to consumers. You need to do the same. Another words, people will pay for higher dollar value, you need to convince them to buy from you.

People buy emotionally then try to justify it logically. Almost every single purchase that is made, it is made emotionally, not logically.

So, emotionally get them involved then provide the service and the value, then they will buy from you.
 

growler

Senior Member
Location
Atlanta,GA
I was the 1st bidder. I was told I was WAY over their budget! Really I asked them, why have me price the work if you already know what it is?

I find that most people know very little about electrical work and have no idea about how much time and materials will be needed to get the job done.

I think your price is fair or even cheap but that doesn't mean you will get the job.

I once worked on a million dollar job where I couldn't believe they had bid it so cheap because the next closest bid had been over 2 million. The company went bankrupt because they were idiots ( it happens ).
 
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