Anyone else getting quoted insane prices for work around your place?

[Cat_Driver]

As a contractor, my goal is to make as much money as I can, but to also have work lined up so I'm actually making money and not waiting for the phone to ring. I've been fortunate in my pricing to never have a day that I didn't have work, and usually 2 months worth of work booked up. Right now I'm booked out to November and when I get to that point, clients sometimes disappear on me, or life gets in the way and they have to postpone the job.

A lot of the jobs I get are from other guys that where way overpriced and never finished. I think a lot of them are trying to make up for not having a lot of work lined up. One house had been going on for a year and all he had done was the sheetrock was in and textured. He moved some walls around, but got the measurements wrong, and that's when he disappeared. It took me 2 months to finish the house so they could sell it. At first, they expected to get $200,000 for it, but when the realtor came back to see the finished house, he listed it for $315,000

Most of my clients are repeats and most of them never ask for a bid, or what it will cost.

The high dollar homes in the fancy neighborhoods are the hardest to deal with, and the slowest to pay. At first, I got a lot work in those areas, but now I don't even bother because they are all so broke and either want to renegotiate pricing, or they give me checks that won't be good for a week.

I also don't do commercial jobs anymore. It takes forever to get paid once the job is done. I learned to pad the bid quite a bit because of this, and it still wasn't worth it

I've thought about raising my rates, but I also think that there is a lot of unknown in the future, and it would be better to have jobs that pay quickly, then to try and max out what I can get today and risk not having work tomorrow.

I don't get not getting paid on time from regular people or commercial customers. I was in business 30 years and was only stiffed out fo $1,500.00 because my wife handles that job and "trusted" the guy because he went to school with our daughter. The only other one that came close was a guy that kept telling me he was going to pay me ( I got all 100% of my money upfront credit card or cashiers check ) The day of the job I pulled up to the job with my trucks and he still hadn't paid and came running out to the back dock of the resort and was in a panic because I hadn't started the work. I stood on the liftgate of the truck and said these trucks don't get unloaded unless I get cash in my hands. I was in the Special Event business so a large convention was waiting for me to bring in theatrical lighting, Theme Decor, etc tec. His customer was screaming at him as he was the middle man. I stood silent. One hour later he arrived with the cash. Then just to stick it to him, I told him I needed x amount more now because the crew was standing around for an hour and we'd get started but if I didn't have the extra for the overtime we'd stop working.

Other than those two my contracts stated I get paid in full 10 days before I start work or 100% the day of the event with cash or cashiers check. Sure I was questioned on being strict, but that was my policy.

You can't get anything from Amazon without paying firs, can't get gas without paying first, airline tickets, hotel rooms, etc etc. People are used to paying upfront for what they want. If they don't then see ya later.

 

[ultrarunner]

I managed a floor covering business as the owner was fighting for his life and thankfully recovered from a brain tumor...

California contracting law forbids demanding full payment up front..

 

[Cat_Driver]

I could give a political reason, but I will just say the laws need to be enforced throughout the country.


One of my friends is a contractor in Austin. He did some work for a high end home, owned by a lawyer. The lawyer stiffed him, because he knew what it would take to get the money out of him. My friend was asking me if I knew any "Guidos" who could go get his money. I did know some friends of friends, but I did not want to be involved, so I told him no.


Another buddy built a huge barn, 50x150 with 20' high walls. He hired a crew to come and put on the insulation and the tin. The crew showed up with about 7 or so workers, did all the work in about 2.5 days, and the charge was $7000. just for labor. They had very little equipment. Ladders, ropes, and a few had safety harnesses. I believe they all came in 2 trucks. I considered it a fair deal, but the boss pocketed the lion's share and probably paid his guys $10/hour (back in 2001).

I remember standing in line behind a couple of tile guys ( that's what it said on the back of their shirts), I asked what kind of tile work etc as I'm always collecting cards, names of subs in case I need that type of work.

The shirt said *** Company, so naturally, I assumed they worked there. Nope they came over from a Southern Country learned their trade here and now are competition for the company they worked for STILL WEARING THE GUYS SHIRT.

So not they do the same work for 1/3 the price, pay no taxes, pay no insurance, pay no license fees, pay no workers comp, pay no required anything so naturally they can beat everyone's prices in town.

That's the reason I finally retired. Between workers comp and insurance I was paying nearly 100K a year.

So when people say these are simple farm workers picking our crop, they are our construction workers IN BUSINESS, Tile laters IN BUSINESS, Brick MAasons IN BUSINESS, Arborists IN BUSINESS, Landscapers IN BUSINESS, Plumbers IN BUSINESS, Electricians IN BUSINESS, AC companies, and on and on. Making huge profits and competing with honest businesses to the point they can no longer compete. Some of these companies are working for wages only because they pay nothing out. No business can compete with someone working for just wages.

This is a HUGE loop-hole in this country that needs to be plugged.

 

[grsthegreat]

I don't get not getting paid on time from regular people or commercial customers. I was in business 30 years and was only stiffed out fo $1,500.00 because my wife handles that job and "trusted" the guy because he went to school with our daughter. The only other one that came close was a guy that kept telling me he was going to pay me ( I got all 100% of my money upfront credit card or cashiers check ) The day of the job I pulled up to the job with my trucks and he still hadn't paid and came running out to the back dock of the resort and was in a panic because I hadn't started the work. I stood on the liftgate of the truck and said these trucks don't get unloaded unless I get cash in my hands. I was in the Special Event business so a large convention was waiting for me to bring in theatrical lighting, Theme Decor, etc tec. His customer was screaming at him as he was the middle man. I stood silent. One hour later he arrived with the cash. Then just to stick it to him, I told him I needed x amount more now because the crew was standing around for an hour and we'd get started but if I didn't have the extra for the overtime we'd stop working.

Other than those two my contracts stated I get paid in full 10 days before I start work or 100% the day of the event with cash or cashiers check. Sure I was questioned on being strict, but that was my policy.

You can't get anything from Amazon without paying firs, can't get gas without paying first, airline tickets, hotel rooms, etc etc. People are used to paying upfront for what they want. If they don't then see ya later.

Thats all nice and well...but probibly illegal. At least it was back when i contracted work in california in the 1990痴. Max you could get before job was 10% LEGALLY. Then you could get up to 50% when job was fully stocked. This was taught to me in class while getting my contractors license. It was to try and stop the rampent scammers that were taking 100% prior to job start...and never coming back.

the main reason i left Calif was due to illegals taking the work. At least where i moved they enforced the contractors license and journeyman license laws. I also got sick and tired of competing with bids from people that did not have the financial burden i had to carry to run a legitimate business.

 

[spitter]

What gets me is people pay 100$ per hr. to get there car fixed but they want to pay 10$ to get there house fixed. :drink:

 

[PILOON]

I always charged by the hour and often promised a 'not to exceed price' based on trade standards for the job.
Example might have been flooring or roofing that had well known trade prices
Oh, and I did turn down many jobs that looked like trouble brewing..
My 'by hour' jobs would always be ahead.

 

[KennyG]

California contracting law forbids demanding full payment up front..

Around here you have to be really careful about deposits. We have lots of cases where contractors take down payments and then disappear. You would have to have a godlike reputation to get full payment up front.

 

[Hay Dude]

What gets me is people pay 100$ per hr. to get there car fixed but they want to pay 10$ to get there house fixed. :drink:

Once illegals get their car repair businesses established, those $100/hr car repair rates will drop a lot, too.

Our government is not willing to clean up illegal workers taking trades jobs away from American citizens.
You could make a living laying brick,landscaping, etc. 20-30 years ago.
Not anymore.

I often hear people wonder why “young people don’t want to work in trades anymore” . I mean it’s so obvious. The race to the bottom mentality of the mechanical trades insures a low standard of living and long difficult hours of work exposed to the elements.
You can see a day when no one but illegals or legal immigrants will be the only ones doing any trade work. It may already be here. It’s rare to see a young American citizen on a construction site, farm or landscaping.

 

[riptides]

Illegal workers are a problem. But there are rules, policy and laws to address them. I will say enforce those accordingly.

In addition, change the mindset of those that seek out and find illegal workers. Therein lies another issue. Employment of said individuals should carry some sort of penalty, even down to the Citizen seeking a "handy-man".

 

[fried1765]

Once illegals get their car repair businesses established, those $100/hr car repair rates will drop a lot, too.

Our government is not willing to clean up illegal workers taking trades jobs away from American citizens.
You could make a living laying brick,landscaping, etc. 20-30 years ago.
Not anymore.

I often hear people wonder why “young people don’t want to work in trades anymore” . I mean it’s so obvious. The race to the bottom mentality of the mechanical trades insures a low standard of living and long difficult hours of work exposed to the elements.
You can see a day when no one but illegals or legal immigrants will be the only ones doing any trade work. It may already be here. It’s rare to see a young American citizen on a construction site, farm or landscaping.

I am anxiously awaiting the realization of the above forecast for illegal auto mechanics!
Labor rate ("trade work") at Sarasota Mercedes dealer is $192 per hour.
Obviously, I do not go there!