Recognizing good work vs. Bad work - REO Property Preservation Forum
Reply
 
LinkBack Thread Tools Display Modes
post #1 of 63 (permalink) Old 01-14-2016, 09:54 AM Thread Starter
Low quality low cost
 
Craigslist Hack's Avatar
 
Join Date: Jun 2012
Location: Every city
Posts: 2,338
Thanks: 695
Thanked 1,687 Times in 846 Posts
Recognizing good work vs. Bad work

As I read this board lately I can't help but notice many of you are either desperate, uneducated, or simply not business people. Many of you are doing work that costs you money. The guy you are working for loves you because he makes his percentage regardless of whether or not the job is profitable.

The key to profitability is ignoring the competition and concerning yourself with ONLY what you and your company needs. This implies that you have to be your own company not an extension of "XYZ" preservation out doing their bidding for peanuts in the field. Ask yourself is this work order good for me? In all business you will win some and you will lose some. In my previous positions in construction I never once witnessed a line of work where so many "lost some" so often. One cannot just say yes to every work order or every job for every client. The most important word in making money is "NO!" learning to say no is the hardest lesson to teach new people in this industry. Common sense should tell newbie's that all the veterans are avoiding this job or this company so stay away. Instead most inexperienced contractors run to that company or that job and say "I can make this work" my question for those people is why would you? Why try to cut corners to make something profitable when you already know what your price is. Anything less than your price is a no.

Our philosophy is "How much can I get for that?" more of a "Where is the ceiling?" we are trying to make huge profit every time out. Sometimes we lose a job and this is a GOOD thing. If you get every job you bid you are leaving money on the table.

I think many contractors get caught up in their personal bills or cash flow going through their business and lose sight of what is most important to their company PROFIT. Losing a job today will actually MAKE you more money than doing it. If you can't get your price WALK! If the company you work for sends you a ridiculous bid approval send it back. When they give you the "take the good with the bad speech" tell them you will take all the good they can send you and they can keep the bad.
Craigslist Hack is offline  
The Following 8 Users Say Thank You to Craigslist Hack For This Useful Post:
ALLDUCKEDUP (01-15-2016), Midwest Contractor (04-14-2016), mtmtnman (01-14-2016), newreo (01-18-2016), Ohnojim (01-14-2016), PPCADDY (01-14-2016), REOdIVA (01-17-2016), SLUCKY44 (01-15-2016)
Sponsored Links
Advertisement
 
post #2 of 63 (permalink) Old 01-14-2016, 10:42 AM
Senior Member
 
Join Date: Mar 2013
Posts: 666
Thanks: 124
Thanked 336 Times in 182 Posts
A lot of guys do not realize that

regionals, and order mills are actually their competition. It's a bizarre state of ignorance. If you get work from national A, you can sign up with regional xyz, and there is a point at which you will see them sending you the same work orders. Why would you help them take your money? This has happened to me recently, companies sending me work orders, even though I had not filled out any paperwork, other than an online inquiry, at the same time these work orders were in my Que from a national. Once you see that a few times, it should be very clear to you, that you are simply giving your money away to have more headaches.
Ohnojim is offline  
The Following 2 Users Say Thank You to Ohnojim For This Useful Post:
PPCADDY (01-14-2016), REOdIVA (01-17-2016)
post #3 of 63 (permalink) Old 01-14-2016, 11:12 AM Thread Starter
Low quality low cost
 
Craigslist Hack's Avatar
 
Join Date: Jun 2012
Location: Every city
Posts: 2,338
Thanks: 695
Thanked 1,687 Times in 846 Posts
I got a call from a Realtor who has us do ALL of her work. She gave our name to a renter who is buying a house. I went over and looked at the property and the inspection report. In talking with the lady she was all over the place wanting a carpet price, wanting hard wood prices, wanting to waterproof the basement, new roof, new windows, new this new that.

An inexperienced guy would see $$$ signs and that's it. In talking with the lady all I saw were headaches. She is limited in what she can spend because the loan she is getting will only go so high on the price. She will have to do the roof and the electric to get FHA approval. This will eat up most of her budget so she is pushing hard to keep all the pricing dirt cheap. That way she can tackle more projects.

I shot her a HIGH HIGH price. One that will make my competition think I am off my rocker. That way on the next one that I actually want I can get the money I want.

Bottom line is this job and this client were bad work. When your gut tells you to walk it's a good idea to listen.
Craigslist Hack is offline  
The Following 3 Users Say Thank You to Craigslist Hack For This Useful Post:
BPWY (01-17-2016), PPCADDY (01-14-2016), REOdIVA (01-17-2016)
Sponsored Links
Advertisement
 
post #4 of 63 (permalink) Old 01-14-2016, 01:17 PM
Senior Member
 
safeguard dropout's Avatar
 
Join Date: Apr 2015
Location: Midwest
Posts: 633
Thanks: 412
Thanked 406 Times in 233 Posts
Quote:
Originally Posted by Craigslist Hack View Post
I shot her a HIGH HIGH price. One that will make my competition think I am off my rocker. That way on the next one that I actually want I can get the money I want.
I am NOT a salesmen. Period. Hell I'm not much of a businessman. Only thing I'm good at is working my a$$ off and negotiating with nationals. So...

Help me understand why shooting an "off your rocker" price helps you get the next job for the right money?

Seems to me it could easily go against you in the future...

Word of mouth could be "don't even bother calling CLH, his prices are nowhere near the ballpark".

Or, if she happens to be stupid and shows your bid to your competition before they bid, they could undercut you by a small amount and get a lot more for the job. You just put a nice profit in your competitors pocket.

If you know she has limited money and is going to cherry pick two or three of the 10 jobs, why wouldn't it be better to bid each one at a price that makes you money, even if she only chooses to have you do one (or none) of them?
safeguard dropout is offline  
post #5 of 63 (permalink) Old 01-14-2016, 02:08 PM Thread Starter
Low quality low cost
 
Craigslist Hack's Avatar
 
Join Date: Jun 2012
Location: Every city
Posts: 2,338
Thanks: 695
Thanked 1,687 Times in 846 Posts
Quote:
Originally Posted by safeguard dropout View Post
I am NOT a salesmen. Period. Hell I'm not much of a businessman. Only thing I'm good at is working my a$$ off and negotiating with nationals. So...

Help me understand why shooting an "off your rocker" price helps you get the next job for the right money?

Seems to me it could easily go against you in the future...

Word of mouth could be "don't even bother calling CLH, his prices are nowhere near the ballpark".

Or, if she happens to be stupid and shows your bid to your competition before they bid, they could undercut you by a small amount and get a lot more for the job. You just put a nice profit in your competitors pocket.

If you know she has limited money and is going to cherry pick two or three of the 10 jobs, why wouldn't it be better to bid each one at a price that makes you money, even if she only chooses to have you do one (or none) of them?
Because the lady is going to pick the job apart. I can recognize these clients a mile away. She will never be happy with anyone. Then you run into her having 3 different contractors at her property and everyone gets in each other's way. Also you have contractors telling the customer this should have been done this way or that and they jack up your payouts. I know I've done it.

If you really don't like the guy you are bidding against you low ball the job ridiculously then when they call tell them you are too busy. They hire the guy your hate and think they paid too much so they hassle him the whole way through.

As far as people saying don't call CL his prices are high? My customers are the ones that say "I wonder what CL has that's so good it costs more?" I don't want people who buy on price calling me. They are a waste of my time.

So you don't understand bidding high when you don't want a job? The easy answer is your competition gets used to you asking 425.00 a square for a roof over on a single story ranch with a 4/12 pitch. So he thinks "I'm going against CL and he's asking 425.00 for a layover. I'll price this at 300 and they think they are getting a deal." So when I find a job I want I knock the price down to 225.00 a square for said layover and in my market I can make money at that. When I bid large projects we called it sniping work. We took time to get the good work and let the filler stuff go.
Craigslist Hack is offline  
The Following 2 Users Say Thank You to Craigslist Hack For This Useful Post:
disgusted (01-14-2016), REOdIVA (01-17-2016)
post #6 of 63 (permalink) Old 01-14-2016, 02:21 PM
Member
 
Join Date: Sep 2015
Posts: 76
Thanks: 13
Thanked 16 Times in 10 Posts
Yep, always bid the job like you don't want it, you just might make some money if you get it.
disgusted is offline  
post #7 of 63 (permalink) Old 01-14-2016, 02:40 PM
Senior Member
 
safeguard dropout's Avatar
 
Join Date: Apr 2015
Location: Midwest
Posts: 633
Thanks: 412
Thanked 406 Times in 233 Posts
That all makes sense except you make it sound as if you're only ever bidding against 1 or 2 other companies. How do you know exactly who you're bidding against, and how does your competition know they are bidding against you? They would have to have seen your bids dozens of times. Around here, biddin' is biddin' and it's a rare day you see the other guys numbers. How can you work these strategies in large markets?

Quote:
Originally Posted by Craigslist Hack View Post
If you really don't like the guy you are bidding against you low ball the job ridiculously then when they call tell them you are too busy. They hire the guy your hate and think they paid too much so they hassle him the whole way through.
Freikin brilliant!
safeguard dropout is offline  
post #8 of 63 (permalink) Old 01-14-2016, 02:42 PM Thread Starter
Low quality low cost
 
Craigslist Hack's Avatar
 
Join Date: Jun 2012
Location: Every city
Posts: 2,338
Thanks: 695
Thanked 1,687 Times in 846 Posts
I like to price condition the prospect. Show them some exotic options with hefty price tags. Then when I show them my price it seems low.
Craigslist Hack is offline  
post #9 of 63 (permalink) Old 01-14-2016, 02:53 PM
Senior Member
 
Join Date: Aug 2014
Posts: 147
Thanks: 2
Thanked 62 Times in 36 Posts
Some of us that are third party or working for another company to the national recognize that we could get more going direct, but are sound enough in mind to know we aren't ready for that yet. I'll give them that 20% off the top to not have to deal with the cubicle monkeys. I look at it as paying for mentorship as well. Don't get me wrong, my work is good enough and I'm business minded enough to go direct, but I don't feel we're ready for it yet.
NCnewbie is offline  
post #10 of 63 (permalink) Old 01-14-2016, 03:11 PM Thread Starter
Low quality low cost
 
Craigslist Hack's Avatar
 
Join Date: Jun 2012
Location: Every city
Posts: 2,338
Thanks: 695
Thanked 1,687 Times in 846 Posts
Quote:
Originally Posted by NCnewbie View Post
Some of us that are third party or working for another company to the national recognize that we could get more going direct, but are sound enough in mind to know we aren't ready for that yet. I'll give them that 20% off the top to not have to deal with the cubicle monkeys. I look at it as paying for mentorship as well. Don't get me wrong, my work is good enough and I'm business minded enough to go direct, but I don't feel we're ready for it yet.
For some people that is exactly where they should be. I remember when we signed our first national and they started calling with questions on every order. The phone wouldn't quit ringing and we had done the same work the same way for them through a regional the only change was we were now processing our work.

Then the checks came in and that fortune I thought the regional was making on me turned out to not be that much at all.

I'm not saying everyone should go out and charge a fortune. I'm not even saying it's all about price.

I have a buddy who is a painter. He was painting a restoration project down town. One of his guys broke a toilet from 5o years ago. There were 8 others just like it. The client wouldn't let him replace only 1 so he had to buy all new toilets and pay a licensed plumber to put them in. He had bid the paint job low so he could get the word of mouth and therefore get more jobs. Instead he will be paying for this job with the next 3.

We declined to even bid on that project because it wasn't good work.
Craigslist Hack is offline  
The Following 3 Users Say Thank You to Craigslist Hack For This Useful Post:
BRADSConst (01-14-2016), REOdIVA (01-17-2016), Wannabe (01-14-2016)
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the REO Property Preservation Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome