Undercutting madness!!

[High Peak Tiling]

HI guys,
I got a customer ring up asking if I had opened for business, once the general chat was over she asked me to come give them a quote.

Brand new building, been up for 6months, Derbyshire stone built.

Room in question 40.6 M2, Porcelain 333x333. 2mm joints, straight bond.
Job was made clear its wanted done by yesterday!

Quote wanted excl materials. (just labour)

I handed them the estimate sheet, after trying to knock me down 56quid & 2 days shorter than my prediction, we came to a mutual agreement of 'im the Tiler & the one doing the job' and it will be done when its done.. quality over quantity etc etc.

Anyhow, Once they read the estimate and clarified what it entailed they shook my hand straight away and said when
can you start? "tonight?" :incazzato:

They said they had 3 other tiling companies quote which either
1. didn't want the job
2. expensive
3. i'm far to cheap (alot cheaper than the other 3 companies)

the other quotes where in excess of £400 more than my quote! ?

 

[Spud]

not sure I understand , were you under cut or are you doing the under cutting ? and £400 isnt much for 40m2 of porcelain labour only ,it would be more than double that in my area

 

[cam_low]

Nearer trebled here

 

[High Peak Tiling]

not sure I understand , were you under cut or are you doing the under cutting ? and £400 isnt much for 40m2 of porcelain labour only ,it would be more than double that in my area

Hi Gary, I have edited the post. sorry for the confusion

 

[Dougs Third Go]

I read it as High Peak was £400 cheaper than nearest quote, ie £10 per m2 cheaper

 

[Ian]

I'm still not getting what you are asking, you haven't put your price.

 

[High Peak Tiling]

I read it as High Peak was £400 cheaper than nearest quote, ie £10 per m2 cheaper

You got it Doug

 

[High Peak Tiling]

I'm still not getting what you are asking, you haven't put your price.

No prices allowed :smilewinkgrin:

I am just curious am I right to be coming in at £400 less than the next up quoter.. strikes me as a large difference on a simple straight job

 

[Rookery]

I read it as High Peak was £400 cheaper than nearest quote, ie £10 per m2 cheaper

So did I. Oh and if its a floor, just to point out the BS minimum grout joint here is 3mm.

 

[Ian]

No prices allowed :smilewinkgrin:

I am just curious am I right to be coming in at £400 less than the next up quoter.. strikes me as a large difference on a simple straight job

You're in the job pricing forum! It depends what your price is, without that I have no idea if you are too cheap or your competitors are too expensive.

 

[High Peak Tiling]

You're in the job pricing forum! It depends what your price is, without that I have no idea if you are too cheap or your competitors are too expensive.

I quoted £556

 

[Dougs Third Go]

ouch!!! very cheap..

 

[Dougs Third Go]

I'd have been a lot more than £400 above you.

 

[Andy Allen]

no wonder he snapped your hand off,,,,

 

[Ian]

That is unbelievably cheap, that's not even £14 per m2. As per Doug, I'd have been more than £400 more than you.

 

[cam_low]

£1200-£1400 before prep

 

[High Peak Tiling]

arrr , o well

 

[High Peak Tiling]

wow, im well out... I based my pricing on a few things... being a straight job and the rough duration estimate...

 

[High Peak Tiling]

No wonder I was seriously Undercutting

NOT intentional I shall make clear.
No hint or breath of any other quoter till I had put mine in.

 

[Martyn Leeds]

I was typing before you put your price on, but I was gonna say Yes, the price is right, you priced it, they said yes, you got the job.
The other guys priced it - they didn't get the job. So they didn't price it right (for this job/customer)

so yours was the right price. For this job/customer.

556/40 = £13.90 pm2 (labour only) = too cheap, maybe

40m2 / 4 days = £139 per day = correct price, maybe

 

[High Peak Tiling]

I was typing before you put your price on, but I was gonna say Yes, the price is right, you priced it, they said yes, you got the job.
The other guys priced it - they didn't get the job. So they didn't price it right (for this job/customer)

so yours was the right price. For this job/customer.

556/40 = £13.90 pm2 (labour only) = too cheap, maybe

40m2 / 4 days = £139 per day = correct price, maybe

Your about on my level with the last statement

 

[ianflem]

And they had the neck to debate knocking £56 of price !!!

Id av done half the job for that price...Is ur hand still sore from the customer
shakin it ?

When u go to price a job just think of ur van insurance quote nxt time m8

 

[High Peak Tiling]

And they had the neck to debate knocking £56 of price !!!

Id av done half the job for that price...Is ur hand still sore from the customer
shakin it ?

When u go to price a job just think of ur van insurance quote nxt time m8

Do you know my insurance quote Ian? Paid that in full 2 weeks ago!!

 

[Peter]

Lost two 40m floors recently quoting around £14pm. NI rates average around £12.

Would be nice getting £1400 for 3 days work though.

 

[Dougs Third Go]

And they had the neck to debate knocking £56 of price !!!

Id av done half the job for that price...Is ur hand still sore from the customer
shakin it ?

When u go to price a job just think of ur van insurance quote nxt time m8

..and accountants, bank charges, diesel, tools..etc etc etc, but I guess it's maybe better than sitting at home doing nowt. The danger with pricing low is that the low price can then become the norm and it's a downward spiral from there.