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Since the first of this year I have been extraordinarily good at losing bids. 100k plus addition and two houses where the “buyers” were friends looking for a deal. Flat told them to go elsewhere.
How often do you tell people you can’t help them “Go buy a home from blah blah blah” (Not much of a name- can’t believe they are still in business)
A high-performance single-family home builder shares tips from his early experience with two apartment buildings.
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Replies
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I tell them I value there friendship too much to put them through the agony of a remodel.Seeeee! You're already unhappy with me and I haven't even cut a hole in the side of your house or made any sawdust.
Bob
*Doug, I guess thats part of our business that some other businesses don't have to deal with? You wouldn't go ask a doctor you know to remove your appendix for less than some other patient. Contractors knowledge and abilities are abused and taken for granted...Thats a given. Lately, I've been telling a bunch of folks 'No'. Mostly due to the committment to finishing my own house but others due to I knew they were just looking for a favor and others because they wanted me to low ball some other guy they got a quote from. I know its competition and all but when you get a call from a person and they are already telling you they got a quote from someone else and thought the price was outrageous before ever telling you the first thing about their project, it gets to you. I've even wanted to follow through with these folks and get the number of the other guy they called and tell him I too gave an estimate and went 10% higher than his quote and could he send me 5% of that when he gets the job. I could make money by being a professional overbidder! That has to be illegal or unethical or something bad...? But honestly, I have turned down jobs for many basic reasons and trying not to give friends a deal is one of them.Mike
*Mike,"I've even wanted to follow through with these folks and get the number of the other guy they called and tell him I too gave an estimate and went 10% higher than his quote and could he send me 5% of that when he gets the job." I've had the flu for a week and a half, had to do the insulation on my job myself, the drywall delivery boys showed up twice today (two different crews) left because they had to hand carry some board around to lower level, had a major wrestling match this evening with Quickbooks Pro 2001 (I won by decision, in overtime). So before I hit the sack I decided to reward myself with some Breaktime time.Damned if what you said didn't make me laugh enough to get up and try it again tomorrow!Would love to work back and forth with you on the 5% thing. Seems like someone could set up some sort of scheme to collect those fees and not actually work!Lovin' it,Thomas
*Thanks guys.The crux of the matter isn't so much friends as having the confidence to turn down jobs that are losers out of the gate.That is a recent concept for me.Still hard to do.I get people that I don't know asking me to build them a house for seventy dollars a foot- can't help you- here's three guys that can...
*I can't explain it, but I've always stuck to the belief that if you aren't saying NO more than YES in this business, then your prices are to low or you are to easy. I'm less than 50%, always busy and always making money. I figure if I got more, we'd be TOO busy, always way behind and losing money.
*some wisdom in that- thanks keith.hey- you chip anybody up today?day ain't over...
*Doug, just be careful about recommending someone that might not do a good job. Something tells me that will come back and bite you in the butt sooner or later.
*You say: "The crux of the matter isn't so much friends as having the confidence to turn down jobs that are losers out of the gate"Yeah it is a problem having the mental courage to follow the rules for running a business. In those rules being busy doesn't equal being successful. That flies in the face of our normal natures. But it is true anyway.There are a lot of posts in this forum on how to calculate what your charges have to be to stay in business. I know I've done it more than once. Anytime a prospective job won't stand those charges it is a non-starter. Knowing that and following that is probably one of the tougher mental challenges for the new business person.There is one exception. That is when you deliberately decide to be charitable to someone. Everyone makes their living off the community. Everyone in so doing incurs a debt to that community. You discharge that debt by giving back a portion of your income to help others. The giving back can be by doing work, or it can be just by giving money. But being charitable is number two right behind making a profit so you can. Plus, it just plain feels good to do good things for someone who doesn't owe you a thing.
*> That has to be illegal or unethical or something bad...?col·lu·sion n.A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose.AKA "Price fixing".
*doug, Rule #1 NEVER work for family. Rule #2 Very seldom work for friends.That said it is good that you are recognizing there are some jobs you just don't want. I have turned work down because the customer was looking for a cheap contractor, or was obviously looking for ways to cut corners in the overall process. Usually by the time I look at a job, find out the budget, and put a rough estimate together in my head, I know if I want the job or not. I always explain to potential clients that we have never been the low "bidder" on a job.