The credit crunch blackmail vultures.

[Norcon]

We've just priced a small construction project for a client. It run's up to about 25k.
Have carried out a number of construction projects for the guy in the past.
The said guy want's to give us the job and tells us the price our competitors can do the job for.
We politely tell him to use our competitors services.

 

[Mr M]

How much lower was your 'competitors' alleged quote to your £25k?
How much work have you got on at present?
If you haven't got much on and can afford to drop your price slightly then you may wish to consider this course of action. Don't cut your nose off to spite your face if it keeps you and your lads gainfully employed in these difficult times.
Alternatively, do as you have said and let him appoint your 'competitor' and then wait for the phone to ring when the job goes pear shaped and he's begging you to come and sort it out for him

 

[Norcon]

7k lower.
We knew back in June 06 that we would be hitting a hard time with regard to our particular line of work come February 09.
The credit crunch just happened to fall on about the same date.
So you could say we were pretty much prepared for the current situation to a certain extent.
How long we can ride out the storm is anyones guess but for now we are able to hold our prices.
There's so many tradesmen out there at the moment who seem desparate for work. Block laying prices have fallen back to what they were 25 years ago. Local guys are leaving the shores in their droves to find work.
Thanks for the advice Mr M.

 

[chappers]

I would have done exactly the same, I always spend time and quote each job individually and fairly and give a price I am willing or can do the job for.
I will only renegotiate on price if the client is willing to alter the specification, don't get yourself a reputation for horse trading, if things start getting hard and you are losing out on jobs you would normally get then and only then is it time to re-evaluate your pricing.

 

[^woody^]

On a tendered specification for £20k jobs, we've been getting quotes with a difference between £5-10k difference for a long time (years) and I have not noticed any difference in pricing due to the current climate.