radiant bids

Paul Pollets

While Dan H. is reticent about discussing prices on this site, your competitor just "bought" a job. Many contractors have very little business experience and price an hourly rate, without regard for overhead, not to mention profit....

They usually don't stay in business long, but another pops up like a mushroom in a wet forest.

It's unfortunate that homeowner's may not know the difference in what they bought. They bought the low price. You have to make a compelling argument for your system when in front of the customer. "Apples to Apples" is rarely the case. Sell features and benefits, and explain why your products and services have value over the low bid.



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[Deleted User]

Tactfully...

Tell him that you appreciate his knowledge of your cost of doing business, and that you can appreciate his need to budget someone elses profit margin based on his gut feeling, and that he should keep your telephoone number close by so that when XYZ goes out of business for doing what HIS market will bear, that he can be assured of getting someone to service his less than excellent system.

Also explain to him that there IS a difference between "heat" and "comfort", and if all he wanted was "heat", he should have told you so in the first place and you could have sold him a really cool 55 gallon drum with a smoke stack connection, a rack for holding it horizontally off the floor and a fire door on it that would deliver EXCELLENT heat, and in fact he could burn his oak flooring, trim and other things in it if need be...

Oh, you wanted COMFORT? THat's going to cost you more...

Bid him adeau and move on to the next customer that places value over price.

As far as being a member of the RPA, it really doesn't mean squat, and they have no greivances board whereby the ethics of members can be called into question and the ability of said member to advertise their membership reeled in. But a man can dream can't he???

Raise your head high and move on to the next customer willing to pay for your expertise and experience. This one obviously knows more about running your business than you do...

Lastly, as it pertains to costs per square foot, I would recommend that you establish your own numbers as it pertains to system cost per square foot and not pay any attention to your fellow contractors. Their over head costs are probably not the same as yours. Track your labor and material costs, and know your need for overhead and profitability and price yourself accordingly.

We use a spread sheet we've been developing for many years to do our estimates, and it is based on proven field experience. ANyone and everyone in the business should and must do this in order to remain competetive. When our guys find a faster and better way to do things, we lower our labor factors accordingly. You have to guess and by golly on the first few, but eventualy will be able to accurately bid the job instead of using per square foot cost factors. No two jobs are ever the same, hence the $/sq ft is never the same. Roll your own numbers...

ME

PS, What does the client do for a living? CPA per chance?

ME

[Deleted User]

Hmmm....

Where'd every one go....

I have a feeling Mr Holohan's editorial cane came out due to the use of dollar amounts...

So solly :-)

ME

ALH_4

Dollars

I believe dollar amounts are also mentioned in the thread entitled "Radiant Questoin".