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M

MFElec

This may come across as a very strange post but I need some general opinions on job pricing as this has baffled me! I have quoted for a job recently and a competitor has quoted around 60% of my price:speechless:. Their price in my opinion seems Ludacris! Installation is for an office conversion into 10x 2 bed, 2 bath "luxury" apartments plus communal works. The job is over 4 floor levels and systems include fire system, door entry, aerial points and CCTV as well as all electrical works from incoming mains inwards. I understand that this is a very open specification but I would love to hear peoples opinions on what a rough(and I know it will be rough) LABOUR cost would be for this sort of job?!? Materials are irrelevant as their cost is their cost! I have done several of these type of jobs before and always thought I was quite competitive until I saw the price given by another company today!
Opinions would be much appreciated just to clarify the position that I'm not going insane and the other company are massively undercharging?!?!?

Thank-you people

One baffled Sparky
 
I would explain to your client that your pricing is very competative and you work standards are high and your materials used are of a recognised quality brand. Without making any direct accusations explain you find it difficult to see how someone can come in at nearly half your price and you have concerns with how they can manage to achieve this as you cannot come close without making a loss on the job.

Explain all your work will comply to the current regulations, all certificates will be issued on completion and all you employee's are trained and competent in Electrical installation and the regulations surrounding it and/or in training and will be fully supervised.

I would say to the customer that it is of course his choice who to employ to do the work but you would suggest that he asks a few questions, basically if you are confident that the other price is unrealistic then sow a seed of doubt into his mind without direct accusation, let him then ask a few questions.
 
There are several possibilities;

The competitor is under pricing because they hope to get more work from the same source afterwards.
They're using lower skilled labour.
They've got a gap in their future work schedule so are using this job just to pay wages they would have to pay anyway for staff they employ.
They're based nearby so have nill travel costs.
They've cocked up big time and won't make it to the end, they'll walk.
They'll try and make it up with extras.

Any one or combination of above, and more.
 
I would explain to your client that your pricing is very competative and you work standards are high and your materials used are of a recognised quality brand. Without making any direct accusations explain you find it difficult to see how someone can come in at nearly half your price and you have concerns with how they can manage to achieve this as you cannot come close without making a loss on the job.

Explain all your work will comply to the current regulations, all certificates will be issued on completion and all you employee's are trained and competent in Electrical installation and the regulations surrounding it and/or in training and will be fully supervised.

I would say to the customer that it is of course his choice who to employ to do the work but you would suggest that he asks a few questions, basically if you are confident that the other price is unrealistic then sow a seed of doubt into his mind without direct accusation, let him then ask a few questions.

Appreciate the response. I am looking into their quote and it seems they have priced for a significantly lower quality of installation and not made allowance for mains areas and distribution. I will look through my quote and adjust accordingly to suit! I'm putting it down to not enough information on the clients part and these factors!
 
All taken on board thanks for the response! As I've mentioned above it seems there is a quite a discrepancy in specification so my price will be able to be much more competitive with theirs!
 
I think a couple of the above factors are true a lot more work on the horizon is a significant one! I'm mainly putting it down to a massive discrepancy Isle spec though which has become apparent after reading their quote in detail!
 
I have seen it yes and the spec isn't comparable seems to be a lack of communication as to what is needed on the clients part!
 
I have seen it yes and the spec isn't comparable seems to be a lack of communication as to what is needed on the clients part!
So client will go with the lowest price and get a huge shock when the bill for extras comes in. I've seen it many times and been asked to match a price, but its impossible when the spec for quotes is not the same or anything like it!
 
So client will go with the lowest price and get a huge shock when the bill for extras comes in. I've seen it many times and been asked to match a price, but its impossible when the spec for quotes is not the same or anything like it!

That's the problem people think they are getting a bargain but it's all false economy. I can either match their price and spec to get the job or stick to my guns. I would rather have works agreed than create a massive list of extras tbh so I think I will explain the massive difference in what's been quoted for. Their quote actually says things like all cables that need to be chased into walls to be done by the client it's quite interesting reading to say the least lol
 
That's the problem people think they are getting a bargain but it's all false economy. I can either match their price and spec to get the job or stick to my guns. I would rather have works agreed than create a massive list of extras tbh so I think I will explain the massive difference in what's been quoted for. Their quote actually says things like all cables that need to be chased into walls to be done by the client it's quite interesting reading to say the least lol


I would try and call on a meeting with the client and lay your cards on the table about your price and what it includes etc..have you worked with the client before?
 
That's the plan. Yes have a reasonable working relationship with them. Funny thing is the same company who are pricing against me were £5000 more expensive on previous job I've done for them when quoted to same spec. I reckon they've come in cheap to win the work and deliberately made omissions on their quote to bring price down
 
That's the plan. Yes have a reasonable working relationship with them. Funny thing is the same company who are pricing against me were £5000 more expensive on previous job I've done for them when quoted to same spec. I reckon they've come in cheap to win the work and deliberately made omissions on their quote to bring price down


Should be a bit easier then if you have some kind of business relationship already. 10flats is a nice little job and if I was in your shoes I wouldn't want the opportunity to pass without fighting for it either. Fingers crossed it goes well and you win the tender...let us know what happens.
 
Should be a bit easier then if you have some kind of business relationship already. 10flats is a nice little job and if I was in your shoes I wouldn't want the opportunity to pass without fighting for it either. Fingers crossed it goes well and you win the tender...let us know what happens.

Will do thanks for advice . Nice to know I'm not losing my marbles lol!
 

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