Undercutting work

[rmaynard]

how can people earn a living? iv been undercut on 3 jobs in as many weeks, i know im not expensive but im being undercut by as much as £500, last one i quoted was a new cu, 4* 5ft florescents, 10* twin sockets 5* single sockets and all associated wiring, basically a new install for a kitchen, i quoted £1100 all in and was under quoted by £350, just dont understand it.

Rob

 

[telectrix]

nothing wrong with your pricing. on the low side if anything. you've been undercut by a cowboy.

 

[rmaynard]

I might get some remedial out if it then, just annoys me, it's difficult enough to earn a wage as it is

Ron

 

[Octopus]

nothing wrong with your pricing. on the low side if anything. you've been undercut by a cowboy.

Who, I doubt, is declaring any income!

 

[snowhead]

Lots of reasons;

Customer may have been blagging you just to get you to drop the price, it may not have been £350.

The underquote may turn out to have Extra charges and end up being the same price as you.

They may not have worked for a while and are desperate for any income.

They may not be paying for materials, or way less than normal price.

They may be known to the customer and doing a favour.

Also be in full time employment.

As above not declaring.

Not with a scheme.

etc.

 

[Ziggy Sparks]

I just quoted a re-wire for a 4 bed semi, new instal for extension, wiring to workshop and 3 pond pumps. £3850. Polski quoted £2000. My material contenet is not far off that as there are nearly 60 fire rated downlights!

 

[trev]

Who, I doubt, is declaring any income!

Or testing, certifying or notifying. The guy will have no overhead of any sort and now has a £750 beer fund.

 

[telectrix]

trev. , that'd keep both me and you pi$$ed for a week. LOL.:38:

 

[rmaynard]

Shame I'm t total ATM, docs orders lol

 

[mayfair]

Think from reading the forum and UK press Snowhead may have a point:- its not always as cut and dry as it seems. I think if i was about to loose my house or needed stuff for my kids I might do the same...as Asda would say every little helps. Days of getting evey job are long gone. Get over it !

Lots of reasons;

Customer may have been blagging you just to get you to drop the price, it may not have been £350.

The underquote may turn out to have Extra charges and end up being the same price as you.

They may not have worked for a while and are desperate for any income.

They may not be paying for materials, or way less than normal price.

They may be known to the customer and doing a favour.

Also be in full time employment.

As above not declaring.

Not with a scheme.

etc.

 

[Guitarist]

I'm finding that it's more about whether a customer wants you these days, rather than the price. Just landed a big job yesterday, complete rewire. We were there 2 hours testing existing install and talking about what the client needs. At the end, he said how impressed he was with our thorough methods, and how we took a real interest in their situation. I was not the cheapest, I can guarantee that, but I was professional, talked regs & part P etc, plus I emphasised how much we respect other peoples' homes. We genuinely try to go that extra mile, and any potential client can see that.
Obviously, if it's a builder or a landlord who just wants the cheapest price, then all of the above doesn't apply.

 

[RISElectrical]

Its happening everywhere, even the larger companies are doing it.

Priced a job the other day at £310,000....
3 other companies were around the £300,000 - £320,000 mark....

The job went to a company that priced it at £200,000... No thats all well and good however the materials and the sub contract items such as data, lightning protection etc all together came to £180,000. I worked out that the amount of hours in the job would have ment that the company having won this would need to pay an average of £4 per hour or cut serious corners. (the light fittings etc were all specified by client so no using cheaper alternatives).

The world has gone mad. he only thing I keep telling myself is that the people doing this cannot sustainably trade this way and will eventually go bust.

 

[Guest55]

........ I keep telling myself is that the people doing this cannot sustainably trade this way and will eventually go bust.

They will , just like the biggest electrical firm in my home town who sadly sunk last week after 30 years as a respected business.
but until then many firms will price just to break even on jobs in excess of 100K just to pay the wages for another week.
so theres no point sitting around scratching your arse complaining that no-ones buying your £400 CU swop.

 

[Guitarist]

Of course, where firms are concerned, price will always be the deciding factor.
I am quite fortunate in that I live in an area where we have a mainly elderly population who are not overly concerned with cost, provided that you deliver a very high level of service. It's not big money, the way commercial and industrial can be, but once you get a good reputation, you become "our electrician".