Wondering if anyone here has been forced to lower their wages with the current state of the economy?
I saw jagwahs thread regarding the discount coupon, so I guess that would be considered an example of lowering wages to some degree….but I’m speaking in more direct terms.
Got a buddy who works as a PM in new construction…..boss offered him half his salary to keep his job, back in August. He took it.
To this point, I haven’t….and while not incredibly busy, I don’t believe it’s cost me any projects. Still winning a good percentage of the jobs I bid.
For the most part, folks looking to save money have accepted my suggestion to “scale down” the scope of the project.
J. D. Reynolds
Home Improvements
Proud recipient of the BT ‘Truth In Print’ award.
Replies
J, haven't lowered the price but have seen less inquiries about my services. Being referral only I don't know what to make of it other than there's less referring going on. Busy enough, not overwhelmed which in moderation has been the case. Looking good end of may probably.
Around here, ever autoworker worth their salt is now a carpenter.
A Great Place for Information, Comraderie, and a Sucker Punch.
Remodeling Contractor just outside the Glass City.
http://www.quittintime.com/
Yeah....been in the "less inquiries" stage for several months now.
Lottsa "talk" about some outdoor projects once the weather breaks.....but, there's ALWAYS "talk".
Heck.....if I get half the spring jobs that folks have spoken to me about, I'm gonna need four more of me.
J. D. Reynolds
Home Improvements
Proud recipient of the BT 'Truth In Print' award.
JD,
I would be open to lowering my prices to win jobs however NONE of the suppliers have. Drywall went up in cost, steel has gotten more expensive and concrete never went down after it spiked a few years back.
So I really can't afford to lower my wageprofit if I just have to increase the costs for the raise in materials.
The overall cost would remain the same to the customer but what I make would be lower. I'm not willing to do that.
I considered lowering my rate but none of the sources I buy materials has dropped prices.
And how would I let my client base know without sounding like a beggar. I posted a real discount of $100 for $500 and more $25 for under $500. I've gotten 2 jobs right around the $500 amount and they are pleased they're getting a big savings.
But one of the jobs is over $2600 and that client thinks they're getting just as great a deal.
This is how I hoped it might go. Simply to offer a real reduction in cost from a point of strength not weakness.
I tell you it's hard to look at a bid that comes up $555 with a reduction of $100 that makes it $455 and not make the job $495 with a savings of $25 instead so the final amout is $475. But I don't worry about it it's going to be paid for with the bigger jobs.
And when the economy improves later this year, View Image, I won't be wondering if I shoul raise my rate back up and how to let my clients know of the increase.