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Old 05-07-2008, 08:22 AM   #31
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Is My Contractor Ripping Me Off???


Cool. So if you are self employed, then you understand self insurance, licensing, etc. You use a tool to provide a product. If I ask you to build my company a website, which I could do myself if I had the time, then chances are, that I will consider your price too high. If so, I will make time and do it myself. If not, I will contract you to do so. How do you counter customr objections to a perceived high price in your business?

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Old 05-07-2008, 08:23 AM   #32
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Where did I do that??????? Find the post. QUOTE ME!
You are correct, you didn't say that. What I meant to write was, I think what people are saying is you can't justify calling all $600 LABOR. Profit is obviously what's left after expenses.
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Old 05-07-2008, 08:40 AM   #33
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Cool. So if you are self employed, then you understand self insurance, licensing, etc. You use a tool to provide a product. If I ask you to build my company a website, which I could do myself if I had the time, then chances are, that I will consider your price too high. If so, I will make time and do it myself. If not, I will contract you to do so. How do you counter customr objections to a perceived high price in your business?

Yup. I understand all of those things. Not once have I called the cost of doing business "profit". However, you guys continuously accuse me of doing just that. Why is that?

To answer your question, I most certainly do NOT talk about "overhead", "insurance" or even "the years of working for low wages to get to make decent money" like some people have used in this thread.
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Old 05-07-2008, 08:58 AM   #34
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You are correct, you didn't say that. What I meant to write was, I think what people are saying is you can't justify calling all $600 LABOR. Profit is obviously what's left after expenses.
Why not? "Parts and Labor" is a pretty common way of pricing a job. So is "time and materials". I picked "parts and labor" as the more accurate terminology in this case.
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Old 05-07-2008, 09:09 AM   #35
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Is My Contractor Ripping Me Off???


You can always try to "do it yourself" since after all, this is a DIY Chatroom. As long as you have or can reasonably get the skills you can save some money. I would consider seeing what is needed then price and try to work it out myself. Maybe you can get the wiring rough-in or do the initial drywall with friends having pasting done by a pro.

Just a thought...
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Last edited by handyman78; 05-07-2008 at 09:12 AM.
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Old 05-07-2008, 09:21 AM   #36
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So what DO you say to allay concerns over your pricing? Surely it comes up.
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Old 05-07-2008, 09:31 AM   #37
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I said $200 for materials and $600 for "labor" aka "the cost of doing business" is high. That's it. That's all I said.
I don't know what an electrician would charge for this install because I'd do it myself. Can't say if this is high or low. I also own a small business and it does 90% of sales throughout the county, not locally and I set our prices based on that market.

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How do you counter customer objections to a perceived high price in your business?
How do you answer this?
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Old 05-07-2008, 09:42 AM   #38
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So what DO you say to allay concerns over your pricing? Surely it comes up.

Of course it comes up. However, it has zero relevance to this thread.
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Old 05-07-2008, 10:14 AM   #39
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But it does have relevance to this thread. A price was offered and your perception is that it is too high. This is a common issue that persons of most fields have to handle daily, and the best way to make a person out of your particular field understand the objection is to relate it to something they are familiar with. The technique is called "empathy", and I am relating the issue to a stuation that you personally deal with.

Discussing the exact reasons for the price are irrelevant, since the price is the price, and your options are to take it or leave it. In other words, there is no value in discussing why the price is too high, the proper way to deal with the issue is to address the objection, i.e. why you percieve the price to be too high (I am using the royal "You", not you, beer geek).
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Old 05-07-2008, 10:37 AM   #40
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Yet it completely changes the subject. Hence, it is a red herring. You, and I do mean you, Tscarborough, are trying to take the focus off of the actual topic, my objection to jbfan's high price and are trying to get me to talk about something else. That's called deflection.

The way I handle it is not germaine.
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Old 05-07-2008, 10:43 AM   #41
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The method you use to overcome the objection in your business does not matter, what matters is that now you understand what the real issue is and should be able to relate to the other side's position.
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Old 05-07-2008, 10:45 AM   #42
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Yet it completely changes the subject. Hence, it is a red herring. You, and I do mean you, Tscarborough, are trying to take the focus off of the actual topic, my objection to jbfan's high price and are trying to get me to talk about something else. That's called deflection.

The way I handle it is not germaine.
Exactly what metric are you employing to make your determination that jbfan was given a "high price"?

Are you basing this on your own hourly billing rate (as there is apparently little disagreement relative to material costs)? Have you taken your experience in other similar, jobs and applied them to this project (time to tasks, consumables, indirects, general conditions, etc)?
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Old 05-07-2008, 10:56 AM   #43
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My min. cost on the cans, from panel, 6 cans, lamps, trim, 1 switch, would be $800.
800 for that is not that bad, i have a neighbor who paid 1200 for 8 cans in their kitchen.
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Old 05-07-2008, 11:00 AM   #44
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Exactly what metric are you employing to make your determination that jbfan was given a "high price"?

Are you basing this on your own hourly billing rate (as there is apparently little disagreement relative to material costs)? Have you taken your experience in other similar, jobs and applied them to this project (time to tasks, consumables, indirects, general conditions, etc)?

Now, we're talking. I'm basing it on my personal experience of my licensed, insured, bonded, electrician doing my entire permitted/inspected basement for $1500. That's 15 cans, 22 receptacles, 11 switches, 2 ceiling fans, 1 dishwasher across 4 circuits.
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Old 05-07-2008, 11:02 AM   #45
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800 for that is not that bad, i have a neighbor who paid 1200 for 8 cans in their kitchen.

Were the put into an existing ceiling where the wires needed to be snaked through the walls or was it part of a complete remodel where the demolition was done down to the studs?

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