Cut-throat Competition: The Race To The Bottom

[Octopus]

Thanks, Murdoch. Good advice.
Last year I was relying on family/friends jobs and word of mouth references, but now I've advertised in the local paper and a bit of sponsorship for the local village summer fair.

Just remember that in the quieter times you can take a bit more time and make sure everything is 110% correct ............. its the word of mouth referrals and repeat business you want ................ plus find a few complementary trades who might need your skills from time to time

AND don't be too reliant on too few customers ............... spread the risk around

 

[SparkyChick]

For the first 9 months or so most of my work was coming from the print ads I had running. Then I started to get word of mouth referrals coming in (had one or two before this, but they were few and far between). The job I'm doing now came from a referral from someone I did a job for way back just after I started in 2016.

Everything else I would say... @Murdoch 's already said it. It's sound advice for anyone starting out.

 

[DC-backfrom the past]

^^ you win some, you lose some.

It can take 3-5 years to build up a successful SE business........... so don't expect too much, too soon.

re win some lose some, how true is that . I recently spent a lot of time sorting out a lot of things for a friend of the family. Probably about a days free work all in ..they wanted downlights changed over and when I gave them a quote
because it wasn't free time they went elsewhere and paid double what I quoted...
also, they had the cheek to say I was taking advantage of the friendship by charging for my time !!!!!

argggghh

 

[Toneyz]

re win some lose some, how true is that . I recently spent a lot of time sorting out a lot of things for a friend of the family. Probably about a days free work all in ..they wanted downlights changed over and when I gave them a quote
because it wasn't free time they went elsewhere and paid double what I quoted...
also, they had the cheek to say I was taking advantage of the friendship by charging for my time !!!!!

argggghh

What an insult.

 

[Deleted member 26818]

Why are people going on about jobs they didn’t notify?
From what I can see, the jobs don’t need to be notified.
Outside light, outside PIR, unless they were not fixed to the exterior of the building, never needed to be notified.

 

[littlespark]

That is awful, DC. Some friend!
Wait until there's another job in their house and they cant get anyone to come out quick, then all will be forgiven

 

[telectrix]

and of course, he'll be too busy to oblige. bloody chancers.

 

[baldelectrician]

Hi Jim / JK (think it's Jim from a quick search)
I have noticed a major cut in standards from others.
I have 1 local firm who issue EICR's that are not signed and things like SPD being checked are ticked in domestic installs where there are none and nobody bats an eyelid.
The letting agent still uses them

I have used the mybuilder etc. a couple of times 9-10 years ago and binned that.

I DO carry out EICR'S as a loss leader (and do test them to a good standard). I get around 95% of the remedials and that's where I make my money.

I prefer to let the 'bottom feeders' get all the cheap stuff as they are welcome to it.
My rate is £40 for the first hour and £35 per hour afterwards.

I am booked up till the end of April so things are OK.

 

[baldelectrician]

Hi Jim / JK (think it's Jim from a quick search)
I have noticed a major cut in standards from others.
I have 1 local firm who issue EICR's that are not signed and things like SPD being checked are ticked in domestic installs where there are none and nobody bats an eyelid.
The letting agent still uses them

I have used the mybuilder etc. a couple of times 9-10 years ago and binned that.

I DO carry out EICR'S as a loss leader (and do test them to a good standard). I get around 95% of the remedials and that's where I make my money.

I prefer to let the 'bottom feeders' get all the cheap stuff as they are welcome to it.
My rate is £40 for the first hour and £35 per hour afterwards.

I am booked up till the end of April so things are OK.

 

[JK-Electrical]

Hi Jim / JK (think it's Jim from a quick search)

It is indeed Jim. And like your good self, I too am bald.

I have noticed a major cut in standards from others.

Me too, I'm afraid. I'm extremely annoyed and concerned about what I've witnessed over the years and am now actively involved in trying to get the Scottish Government do something about it. Thankfully, the ball is now rolling at long last and momentum will now surely increase.

http://www.select.org.uk/selects-campaign-recognition-professional-electricians-raised-holyrood

The sooner those who are incompetent and unqualified are identified and prohibited from working on electrical installations the better.

I have 1 local firm who issue EICR's that are not signed and things like SPD being checked are ticked in domestic installs where there are none and nobody bats an eyelid.

These underhand practices defeat the purpose of an EICR entirely. I've just started doing EICRs for a Glasgow-based agency who got rid of their previous contractors for this very reason.

The letting agent still uses them.

That's because the agent couldn't care less about the quality of the report. All they're interested in is getting the report done as cheaply as possible and seeing the word 'Satisfactory' at the bottom of page 1.

I have used the mybuilder etc. a couple of times 9-10 years ago and binned that.

I've done over 100 jobs that came via My Builder, but have only done one through the site since last September. I got fed-up of being continually undercut by young boys out to make a name for themselves. The average age of these guys must be around 20. It would appear that they come out of school, go to college for 3 years then go straight to My Builder and Rated People. Indeed, every time I log-on there are inevitably more fresh-faced boys using the site, crowding-out an already overcrowded market.

I've had to compete in my own locality in Glasgow with guys traveling from places like Stirling, Dundee and Ayr. Seriously. When EICRs, smoke alarm installations and rewires come up, they all gather like flies round the proverbial turd undercutting one another right, left and centre. When a rewire job appears so too do the "we've done thousands of house rewires in 10 years and we'll do your house in a day" rewiring "specialists". I'm glad that I don't have to rely on My Builder for work.

I DO carry out EICR'S as a loss leader (and do test them to a good standard). I get around 95% of the remedials and that's where I make my money.

I won't budge on my prices for EICRs. I have a fixed-price tariff depending on the size and age of the property which is non-negotiable. The customer either accepts my price or I walk.

I prefer to let the 'bottom feeders' get all the cheap stuff as they are welcome to it.

That's my policy too. The problem though, is that the bottom-feeders also want a slice of the action for the lucrative jobs such as rewires and are active in that sector of the domestic market too.

My rate is £40 for the first hour and £35 per hour afterwards.

I'm struggling to get anywhere near those rates at the moment. That's how bad things are up in Glasgow right now. The city is absolutely hoaching with young boys working for pocket-money and they've all but killed the domestic market stone-dead. Thanks to these clowns, some landlords now expect to have an EICR done for £40, two interlinked smoke alarms and one interlinked heat alarm installed for £100, sockets installed for £25, and houses rewired for £1500. These young fools have created unrealistic customer expectations and distorted the market by way of their cut-throat competition. But ultimately, it is their own throats that are being cut because sooner or later their foolishness will catch-up with them and their businesses will suffer accordingly.

I am booked up till the end of April so things are OK.

I'm pleased to hear that. I think I'll start operating in your neck of the woods.