over crowded marketplace

[302]

My take on the current climate and credit crunch is theres to many tradesmen and not enough contracts to go around. Have been quoting cheaper prices just to get the work and over the long term I think this wont help matters once the dust has settled. Can anyone add some tips into competing in this market and how they promote themselves or their business?

[amestaper]

You will get work by undercutting everyone else, but what are you going to do when another contractor undercuts you? Are you going to drop the quote again while the builder laughs behind your backs at everyone prepared to work for free? Things are tight at the moment and you have to leave some profit for yourself otherwise you're as well throwing in the towel right now my friend.

Dont even try to compete with the budget estimates. Walk away and let them do the job, and the client or builder will see what kind of finish they leave for their rock bottom quotes. In case you're wondering I'm not encouraging price fixing or anything dubious, I'm just being realistic. Your body can only take so many years of physical abuse doing this job so why waste it by working for a pittance?

My advice, be good at your job, treat your existing customers like gold and show them what you have to offer.

BTW. I presume you are a taper?

[the_tapeinator]

Keep your distance from developers who accept ridiculous quotes. Bad prices just now, early 1990's prices in fact and much more competition than usual. Seen competitiors bid a fraction of what I bid for a contract and go t!ts up half way through a job because they run out of cashflow and cant get tradesmen to do the job for them. What worries me is that it could stay like this for years to come.
Its an employers market at the moment, you have to remember that. Price a job fair but dont cut your quote so much that you know it will be a struggle to complete the work, otherwise it could put you out of business.

[302]

I hear ya! Thanks for the insight. Been getting small, very small jobs and havent had an enquiry for ages. Hope it picks up again at the end of January or before then like it usually does.