ECN Forum Forums General Topics of the Trade Business Related Discussion Did I estimate too much?

sub,

all that experience and everything should allow you to be more efficient and run a better business. therefore you should be able to charge less. The new guy should charge more, since it'll probably take him longer - since he's less experienced and all.

quote"Well that price sounds right,I just gave and estimate for a 3 story house with 2 bath,enclosed porch,3 exits new 100 amp servise with all the required minimum code items for $6,100.00 (house is gutted)and another local contractor mention by name"I was told by owner is going to do it for $2,000.00"Location is Camden New Jersey,The owner of property is a doctor.I estimate that the 2,000 will be for materials alone.
So go figure as long as there is people willing to under cut others we will never be respected as we should be,nothing works with out electric and we will always be considered thief for charging what we are suppose to charge. "

Did the guy pull up to the job in a white truck with racks and side boxes and California tags, wearing $300 raybans and goes by the name Richard , with a crew of less than documented journeymen by any chance? If so he will probably pull this off and make some money somehow or another.

Whoop Whoop

Now your just making fun....this is serious business.

whoop whoop again.

That hurts

No he is being in business for a while,and he does have a less than desirable crew they would fail a drug test I have being told by other contractors.He has always under cut everybodies prices.I have to wonder how he stays in business or he just treats the business as a job and does not invest in it.

I ran a quick estimate on your take-off, and came up with about 48 hours and $500 (cost) in material.

IFthis were a straight up job, you might do well for $3,000 to $3,500. But, this is a remodel/addition and you are dealing with a home owner, so the 48 hour estimate may not even touch it.

All an estimate is ever supposed to be is an educated guess of how much you are willing to do that job for. If you have lots of work and would have to take it on overtime then bid it on over time, but if you don’t have any work and are willing to take it at cost then bid it at cost. Both prices are the right price, and the other guy probably really needed it or was no experienced enough to know better, either way that was his right price, not yours.

Don’t get caught up in one estimate, do 10 or 20 then start looking for patterns and trends, but if you can’t get any work then take a hard look at what you bidding and lower accordingly. Also keep in mind the most important estimates to analyze are the ones where you get the job, not the ones you lost.

Hrm... I got that bid at <19 hours rough and finish. and thats including drive time.

$500 material sounds right,

lets just say guy whos undercuting that much will not be in bus. long, once he finds out hes working for free