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There’s one thing that is really bugging me at the minute, and that is short-selling. I know I have talked about this before, but I’m utterly bewildered by the fact that companies are still doing this in a time when profits absolutely MUST be made!
We’ve had a company quote for a house full of windows £1k+ less than us! When we’ve worked it out, if we were to match that price we would be making a loss on that job. And this isn’t the first case of such a thing happening. My theory is that this particular company know when they are up against us, so they feel they have to sweep the job in order to win the business, as they know we’re more likely to win the order. The problem is there that in Wakefield, we come up against each other quite a lot. So God knows how much they will have lost.
Other companies are guilty of this idiotic business practise too. What I can’t fathom is how these companies think they are going to manage years down the line when they have to honour their guarantees? That why businesses make profit, to stay in business to serve their customers in the future.
The squeeze on public finances mean it’s going to get tougher to win orders over the next few years. What is the point of signing up business if you’re not going to make any profit?! Some of you reading this may be guilty of this sort of selling. So would anyone be able to explain to me how selling like this on a regular basis, seemingly not making profits on contracts, is good business practise, and how you expect to still be here in the next 5 years?
I personally would rather lose a contract then sign one up for no profit or commission. I’m not working for free, especially in times where customers are being ever more cautious about spending their money.
We’ve had a company quote for a house full of windows £1k+ less than us! When we’ve worked it out, if we were to match that price we would be making a loss on that job. And this isn’t the first case of such a thing happening. My theory is that this particular company know when they are up against us, so they feel they have to sweep the job in order to win the business, as they know we’re more likely to win the order. The problem is there that in Wakefield, we come up against each other quite a lot. So God knows how much they will have lost.
Other companies are guilty of this idiotic business practise too. What I can’t fathom is how these companies think they are going to manage years down the line when they have to honour their guarantees? That why businesses make profit, to stay in business to serve their customers in the future.
The squeeze on public finances mean it’s going to get tougher to win orders over the next few years. What is the point of signing up business if you’re not going to make any profit?! Some of you reading this may be guilty of this sort of selling. So would anyone be able to explain to me how selling like this on a regular basis, seemingly not making profits on contracts, is good business practise, and how you expect to still be here in the next 5 years?
I personally would rather lose a contract then sign one up for no profit or commission. I’m not working for free, especially in times where customers are being ever more cautious about spending their money.
>hi gb
if the company makes their own frames? then they will break even on the selling out price but… make profit through the manufacturing side.. if they dont make their own frames then its suicide pricing !
>Maybe they knew they were not going to get the job and left a very low price for anybody following
>Rob – yeah they do make their own as far as I'm aware, but I can't imagine that much profit would me made. Long time no speak anyway Rob, how are things over the border?
Frank – maybe so. But I don't see the reason. Every company should be trying their hardest to win every job, at the right price. There are some jobs I don't think I'm going to get then I'm surprised when they come into the showroom and sign up. You can't write off any contract until they physically tell you no.
>If they are local, and your theory is correct, is telling them the difference on here not then going to help them better gauge where you are next time, and allow them to make a bit more whilst still underpricing you? They are bound to be reading this.
Tell them nowt, leave them guessing and pricing to make nowt.
>To be honest Ginty they've been doing this for about two years, so I'm pretty sure they know where we are, and we know where they are too. Everyone in Wakefield knows pretty much how everyone prices. It's common knowledge. I just used this case to make a point, it's one of the more extreme cases.
>hi gbi good thanks. just got back from wakefield were we have an office at raines house.im busy away building this new empire along the same lines i was going to do with dg… untill i saw the light.the problems in the dg industry will never go away as the deeds are set and its every dog for himself.you have some serious competiton in the yorkshire area i have never seen so many companies in one area.one major benefit for me though out of this is there is alot of exp- labour around in yorkshire.. especially around wakefield, bradford, hudds… Read more »
>Rob – you should have said! We could have had a slap up meal at KFC round the corner lol!
I'm still working as hard and as much as I can (and dancing terribly drunk at the weekends!).
Yeah there is a wealth of experience of labour in West Yorkshire, I'm certain you'll find all the right people you need round these parts!