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Londoner Posted: Jul 12, 2016 04:35 PM	Diminishing labour cost My question is this....I am bidding a large job, say 100,000 board feet, that requires 4 inches of foam. I'm in a very competitive market (aren't we all), Is it reasonable to discount the fourth inch because labour should stay relative for the second pass. I ask because I've been beat out on a couple of jobs and the bd ft price that I'm seeing for these 4 inch jobs is suspiciously low. Any help would be greatly appreciated. Jay.
mason Posted: Jul 13, 2016 08:07 PM	Londoner, I actually wrote an article titled How to Go Broke as a Contractor, based on my own experiences in the early 80s. The best way to go broke is to match low ball bidders. Try to find out a way to get negotiated work that takes you away from the low ball guys. These guys only can stay in business by either not providing the services and material that is bid or by tacking on extra charges with change orders. Sometimes it is better to be way above the competition in price and show your prospective customers why. Have them look at the material cost, overhead, equipment, training, after job customer service, etc. and compare to the low ball guys. If the numbers don't add up, a smart consumer will go with the guy that is offering a good job at a fair price and would be skeptical of the low ball bidder. Another thing to consider is to expand your market, look at other industries that can use spray foam such as meat packing plants, dairies, fish, chicken, turkey processing plants, agricultural buildings, reefers, tank cars, hot tubs, boat manufacturers, plastic or metal fabricators, climate controlled warehouse, freezers, and dozens of others. Email me for a copy of the article and a few others that might help, But above all, do not lower your price. The material is a hard cost and you can't assume that you will make it up on labor.

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Londoner

Posted: Jul 12, 2016 04:35 PM

Diminishing labour cost

My question is this....I am bidding a large job, say 100,000 board feet, that requires 4 inches of foam. I'm in a very competitive market (aren't we all), Is it reasonable to discount the fourth inch because labour should stay relative for the second pass. I ask because I've been beat out on a couple of jobs and the bd ft price that I'm seeing for these 4 inch jobs is suspiciously low. Any help would be greatly appreciated. Jay.

mason

Posted: Jul 13, 2016 08:07 PM

Londoner,

I actually wrote an article titled How to Go Broke as a Contractor, based on my own experiences in the early 80s. The best way to go broke is to match low ball bidders. Try to find out a way to get negotiated work that takes you away from the low ball guys. These guys only can stay in business by either not providing the services and material that is bid or by tacking on extra charges with change orders.

Sometimes it is better to be way above the competition in price and show your prospective customers why.
Have them look at the material cost, overhead, equipment, training, after job customer service, etc. and compare to the low ball guys. If the numbers don't add up, a smart consumer will go with the guy that is offering a good job at a fair price and would be skeptical of the low ball bidder.

Another thing to consider is to expand your market, look at other industries that can use spray foam such as meat packing plants, dairies, fish, chicken, turkey processing plants, agricultural buildings, reefers, tank cars, hot tubs, boat manufacturers, plastic or metal fabricators, climate controlled warehouse, freezers, and dozens of others.

Email me for a copy of the article and a few others that might help, But above all, do not lower your price. The material is a hard cost and you can't assume that you will make it up on labor.

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