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I lowballed the bids.

Scott Davis

New member
The term Lowballer specifically describes someone who "lowballs" the price. I think the term "Hack" thrown around more incorrectly when discussing price. Just because someone is lower priced doesnt make them a hack. Look at Ron. If someone is low priced and does a terrible job, that makes them a hack.

One thing Ive never seen is someone who charges alot, but still does a terrible job....Would they be a hack?
 

Jeff Wible

New member
Yes, the person doing terrible work consistently is a hack. Quality will always be the determining factor as to who's a hack.

Jeff
 

Ken Fenner

Active member
You bring up a good point, Jeff. My definition of a lowballer is a company that sells on price alone and is way out of line with regional pricing. An example would be I bid $575, a painter bids $495, a new guy bids $400 and the proverbial lowballer, comes in at $150. This guy can be an uninsured weekender, a hack that cuts corners or he can also be a larger company that does good work.

The last one is the dangerous one. He is afraid of, or is just plain uninterested in trying to sell work at a higher rate more in line with everyone else. Their price is what sells. He/She drives down the overall market. These are the companies that do well at first. They give decent quality work at a "fair" price.

Well, I am not gonna go out of business so I increase efficiency, lower my wages, sacrifice a bit of work quality and match or undercut him. He does the same. Joe Pro down the block and another big company across town read the writing on the wall and they start charging lower. Three bigger companies in a market advertising and selling jobs at low prices..Now the entire market begins to realize that $135 house washes are the norm. Now the guy that bragged about doing massiive amounts of work finds that his prices aren't so competetive anymore, so what's he do? Its a vicious cycle. Lowballers are a scourge to any industry.

Note: Not everyone that charges the lowest rate is a lowballer. Somebody has to be lowest. Its when they are WAY out of line that they become a lowballer in my eyes.
 

Jeff Wible

New member
I see your perspective Ken. The term "fits" sometimes for sure. But I've just seen it used to describe seemingly anyone charging less money. But, yea, it does have a group that it applies to.

Jeff
 

Scott Davis

New member
I see your perspective Ken. The term "fits" sometimes for sure. But I've just seen it used to describe seemingly anyone charging less money. But, yea, it does have a group that it applies to.

Jeff

To use a Fenner term, I think we are in Violent agreement Jeff.

If it is used to describe someone who just charges less money, then the person doing the name calling is ignorant, and just angry that they lost the job.
 

Greg Nash

New member
I think alot of contractors call anyone who beats their price a lowball hack. that is not always the case, in my area I have a guy who advertises 45 dollar house washs. I know for a fact he is not a hack just a lowballer. at that price he has clientle that i wont even return calls to. there is a market for cheap jobs and high end jobs what you have to look out for is the guy who does both and charges on the low end of the scale. If I was to move north I would probably called a low baller for awhile until I learned my market and adjusted.
 

Tom DeFrancesco

New member
I must say I have also adjusted my prices and have dropped them a bit due to the economy. I have gotten quite a few calls on doing decks and a couple of wood retaining walls. Out of the 5 estimates I went out on I closed all 5. I ceratinly am not a low baller. Ask Bruno (LOL). What I did do to 4 out of 5 is up sell a house wash. I dropped my house wash a $100 from my 2008 prices but raised my wood restoration by $75 compared to last year. Meaning I up sold the house wash because I tell them we normally charge XYZ but if you hire us for the wood restoration we will only charge ABC for the house wash. It basically is a shell game and it works.
Me and Bruno already have a bonifide "low baller" who will remain nameless in our area. Low baller is putting it nicely.
Just because someone is able to give a lower price does not necessarily mean they actually did.
 

DJ Carroll

New member
I must say I have also adjusted my prices and have dropped them a bit due to the economy. I have gotten quite a few calls on doing decks and a couple of wood retaining walls. Out of the 5 estimates I went out on I closed all 5. I ceratinly am not a low baller. Ask Bruno (LOL). What I did do to 4 out of 5 is up sell a house wash. I dropped my house wash a $100 from my 2008 prices but raised my wood restoration by $75 compared to last year. Meaning I up sold the house wash because I tell them we normally charge XYZ but if you hire us for the wood restoration we will only charge ABC for the house wash. It basically is a shell game and it works.
Me and Bruno already have a bonifide "low baller" who will remain nameless in our area. Low baller is putting it nicely.
Just because someone is able to give a lower price does not necessarily mean they actually did.


I just don't see this happening in my area . . . This is an e mail from a customer this morning . . .

"We have decided to have the works. We would like the roof cleaning, gold package vinyl siding cleaning, and the drive and front sidewalks. We will not need the garage door cleaned, it has recently been painted.

If all possible could you please do this the first or second week in May, we are having our concrete around the pool resurfaced in May and would like this done first. Please let us know. When you come out we will show you where the downspouts come out."

They called for a roof cleaning. I priced the roof, along with the house and told them the drive would only be $99 if they wished to go with the total package. . . it is a 2200 sq ft. house

Prices:
HW - Gold Package = $367
Roof - $513
Drive - $99
Total = $979

Recession ??? I guess I am thankful for my selling ability and being in an area not hit nearly as bad as others. :clap:
 

Tom DeFrancesco

New member
My outlook is people seem to be more than willing to pay what they have to to clean or restore what they have rather than buying or building new. I have a lot of friends that are GC'S and their phones have not been ringing for the last 4 months.
 

Ken Fenner

Active member
I booked another job and have a couple irons in the fire, so very soon I can hurry up and...have a cold ice tea and some BBQ ribs? I like me some BBQ, but I need to work.

You can sub for me every dry day for the next couple of weeks if you want. I am having an interesting year with employees. I'll call you in the morning.
 
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