Pricing advice on large custom closet/wardrobe...

[Mark Bolton]

Its plainly clear you have the drive to make it work for sure. It's only my 0.02 but just be careful of trying to get business by keeping prices low. It can set a precedent that can be very tough to get away from. If you feel that you have to come in low to get things going just make sure you focus hard on raising your prices at the first opportunity possible.

You may have factored them in but for instance when you take 3 days of travel time (6 hours) perhaps more off your labor it can get sketchy. A day to go out and take accurate measures, story-pole/template the space and so on. Time at local sources procuring material, ordering on-line, paying local and federal tax. These are all things that count as billable hours.

Hopefully you get it and can get the ball rolling.

[Michael Dunn]

I just received the email saying that my bid was not chosen. I doubt she went with someone who priced theirs higher. It's probably for the better. It most likely wouldn't have been with the time. At least that's what I'll tell myself.

Thanx guys!!!

[Darius Ferlas]

If it's of any help, I'm close to completing a very similar project. Just some trim work left to do.
My unit is smaller though 60" wide and 7'8" tall. It took me exactly 36 hours to bring to the stage shown in the photo. That does not include the design work and shopping for hardware etc. I am a hobbyist working with wood about 2 to 3 hours a day after work and 8 hours on weekends. I don't have all the tools I would like for this kind of job and of those my Hammer j/p is about the only tool to speak of in terms of quality. I could certainly do with much more space than my one car garage has to offer.

[Michael Dunn]

If it's of any help, I'm close to completing a very similar project. Just some trim work left to do.
My unit is smaller though 60" wide and 7'8" tall. It took me exactly 36 hours to bring to the stage shown in the photo. That does not include the design work and shopping for hardware etc. I am a hobbyist working with wood about 2 to 3 hours a day after work and 8 hours on weekends. I don't have all the tools I would like for this kind of job and of those my Hammer j/p is about the only tool to speak of in terms of quality. I could certainly do with much more space than my one car garage has to offer.

Very nice!!! Beautiful!!!

[Darius Ferlas]

Oh stop it

It seems I was typing my post while you already posted yours about the email you got.

In general terms, I agree with the comments about under-pricing yourself, though I have to admit that when I started in construction, back in 1987 in NYC, my first profit from a 4 week job was $200. It wasn't much but I didn't complain as my background in construction was nil. You see... before I came to the US and picked up a hammer for the first time in my life, I had been a student of English philology specializing in the early Puritan writings in America

After that job I got 3 other contracts from that and the very next job gave me $24K in six weeks after all costs. It kept getting better from then on until I got tired of the immigration process and left for Canada.

[Mark Bolton]

I just received the email saying that my bid was not chosen. I doubt she went with someone who priced theirs higher. It's probably for the better. It most likely wouldn't have been with the time. At least that's what I'll tell myself.

Thanx guys!!!

Bummer to hear. You never know. The reasons could be from any end of the spectrum. It never hurts to give her a quick ring and just ask for some input for the future. Explain to her that you are always looking for any information that may help you with your bidding in the future. She may likely give you a lot of good information.

Im assuming your networking locally perhaps with some of your local suppliers, local lumber yards, and so on? The big boxes would be a waste in my opinion but if you deal with any small local yards often times dropping off some info and chatting with the guys at the local yards can get some action flowing especially if your willing to do smallish/odd stuff. In most markets the vast majority dont fool with the small odd stuff.

[Mike Cutler]

I just received the email saying that my bid was not chosen. I doubt she went with someone who priced theirs higher. It's probably for the better. It most likely wouldn't have been with the time. At least that's what I'll tell myself.

Thanx guys!!!

Michael

She may not have gone with anyone at all.
I agree with Johnny, $5K would have been on the low end, and it is entirely possible that she just found out how much a custom job can cost and is coming to grip with the cost of a custom installation.
You may hear back from her in a few months.

[Michael Dunn]

Bummer to hear. You never know. The reasons could be from any end of the spectrum. It never hurts to give her a quick ring and just ask for some input for the future. Explain to her that you are always looking for any information that may help you with your bidding in the future. She may likely give you a lot of good information.

Im assuming your networking locally perhaps with some of your local suppliers, local lumber yards, and so on? The big boxes would be a waste in my opinion but if you deal with any small local yards often times dropping off some info and chatting with the guys at the local yards can get some action flowing especially if your willing to do smallish/odd stuff. In most markets the vast majority dont fool with the small odd stuff.

I will definitely do that. So far I have accounts with two local yards. There aren't too many. Especially that have good prices. I do network and talk quite a bit with the guys at the yards.

Thanx for the advice!!!

[Mark Bolton]

and is coming to grip with the cost of a custom installation

Yep, or could have been comparing apples and oranges and bounced it in a completely non-custom direction with one of the million component closet options. Its definitely worth a polite call to inquire. Her knowing that your genuinely interested may get work in the future.

[Michael Dunn]

Here's the thing. I found out of her interest in this project through a website that mediates communication between customer and potential builders. I received a notice that she accepted another builders proposal. I'm new to this site so it seems as though I no longer have communication with her. Bummer.

[Jeff Duncan]

Be very careful when bidding on jobs that way. People who advertise a project online to get bids like that are looking for the lowest possible price! Think about it for a minute, would you hire someone randomly off the internet to work on your home b/c they gave you the lowest price? Or would you hire someone local based upon references and word of mouth? I would never hire anyone to work on my home that way and I'd be very nervous about working for someone willing to hire me that way.

Mark's point is very valid here too....when your first starting out you try to build up a reputation. You probably don't want to build a reputation as being the cheapest guy around....at least I don't Much better to build a reputation as someone who builds quality for a reasonable price. Even better if you can build high quality for high prices and still keep busy

good luck,
JeffD

[Richard Coers]

Questions like this crack me up. Pricing advice? My overhead is nothing like your overhead, at least it seems highly unlikely. The proper question, if there is one when someone is uncertain about their bidding, is how many hours would it take for you to build this. Of course then we have no idea how fast you work, what your methods are, etc....... I suggest you learn like the rest of us. 40 years ago, I always wished I had a flat rate manual like the auto mechanics. Replace a water pump on a 92 dodge? $500. At almost every shop in town. The other question I have is how did you arrive at your $45 rate? I hope you took in all your overhead, business insurance, etc.......then added profit. It would indicate you aren't planning much profit in your custom work, or you have really low overhead.

[Mark Bolton]

Questions like this crack me up. Pricing advice? My overhead is nothing like your overhead, at least it seems highly unlikely.

Ouch, that sounds exactly like something I would write! In defense of Mr. Dunn, while you do have to quantify your particular overhead for your specific operation, there are some national averages that are simply true across the board. The 45/hr rate is basically the low end threshold for what it cost to simply keep breathing in a business. You wont reach the beach, but you'll tread water bobbing in the ocean (with sharks swimming below of course). Numbers in this area are drummed out by places like the SBA all the time. Its basically the minimum billable rate that will cover the basics of being in business.

Its no news that he's working out of his garage, at home, whether its zoned or not who knows, whether his wife has income who knows, but by his own statements he has formed an LLC, is licensed and registered with the state he is operating in, and so on. We all start somewhere. Sadly kicking off a garage shop likely should have started three years ago not now when we are likely on our way out and the stock market has busted 15K.

With regards to questions about pricing a job.... I have seen dozens of posts like this on another site which is, in my opinion, a more professional (meaning people doing this as the sole source of food in their mouths) site, and post come in from all corners of the country and there is very little variance in the pricing. Perhaps 10-15 percent. There is rarely a case where a shop that has massive overhead is selling a job for 8500 and everyone else is selling the same job for 5500. Mostly everyone is in the same ball park. Some may be way out in left field, but its the same park.

I live in east flum buck and my numbers are very similar to those in metropolitan areas because my costs of goods are higher but my overhead is lower. It averages out.

[Kevin Jenness]

For your infotainment, Google "I would like to hire a custom cabinetmaker" and So you want to be a cabinetmaker".

[Mark Bolton]

For your infotainment, Google "I would like to hire a custom cabinetmaker" and So you want to be a cabinetmaker".

I remember when that first came out. Priceless. Whoever came up with that and the other about going into business should get an award. So spot on its spooky.