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SherwoodCleaningSe

  • Posts: 2368
Undercutting is starting
« on: January 13, 2009, 07:37:11 pm »
I've been loosing the odd one here and there recently, some at good prices some at not so good.  Today I lost a £6.50 house leaded windows 2 up 2 down front and back terraced but with a bay at the front and dormers. Undercut.

And another same again but not leaded but this time with a conservatory (3 sides with loads of fanlights and lead) £8.50.  I see the new window cleaner knocking at this one.

My point is that I thought these were really low priced and completely safe, one had been a customer for over 10 years and both very happy with our work.  I'm amazed that others can go in at lower prices, maybe it's just to nick the work, but they still have to do it.

I still have plenty on this round, so I'll be doing the neighbors for probably another 10 years and if I get asked back they'll have to be repriced, not a problem.

My point is, undercutting LOW LOW LOW priced work, I never would have thought it would happen.

Simon.

windowswashed

  • Posts: 2646
Re: Undercutting is starting
« Reply #1 on: January 13, 2009, 08:07:52 pm »
I'm not surprised with undercutting as several window cleaners are on a mission to canvass additional work for fear of recession and will lower there prices as encouraged from this forum, what do you expect with so many redundancies and new people wishing to start up.

chrisyg

Re: Undercutting is starting
« Reply #2 on: January 13, 2009, 08:14:47 pm »
TBH ive reduced mine in local housing esates, im on already - just because of my new pole and brush, im that much quicker, i can get more done, so reducing my prices hopefully give me more custom.

However, i wouldnt be so low as to directly undercut another operator knowingly. If it happened without me knowing then i cant help that..

If i go canvassing i do ask if they require or already have a WC.

Least you are still in the area en mass, and will give you a chance to increase ever so slightly should they wish to come back. (Sorry ive already replaced you with someone else- pay a bit more, i'll drop someone to include you again :P )

Yes your prices wer shockingly low and been doing it 10 years.. wheres the loyalty there?? I mean if you had only been doing them a few months or something fair enough but 10 years and then drop you, that must hurt!

peter holley

Re: Undercutting is starting
« Reply #3 on: January 13, 2009, 08:30:33 pm »
if you take them back, yhey will mess you around again in the future...so you have to get what you can from them ..as they will have no loyalties.

paulscotney

Re: Undercutting is starting
« Reply #4 on: January 13, 2009, 09:23:36 pm »
if you take them back, yhey will mess you around again in the future...so you have to get what you can from them ..as they will have no loyalties.

Very true

dai

  • Posts: 3503
Re: Undercutting is starting
« Reply #5 on: January 13, 2009, 09:44:28 pm »
Is the undercutter trad? I lost some I was doing for £5.50 to some new trad guy. It was only that I did a lot close together that the job paid.
Some guys are happy [for now] working for £10 an hour.

SherwoodCleaningSe

  • Posts: 2368
Re: Undercutting is starting
« Reply #6 on: January 13, 2009, 09:52:43 pm »
Looks like the guy is trad, probably just made redundant and thinking £10/hr is good.  Wait till he wants a holiday.

SherwoodCleaningSe

  • Posts: 2368
Re: Undercutting is starting
« Reply #7 on: January 13, 2009, 10:09:42 pm »
Looks like the guy is trad, probably just made redundant and thinking £10/hr is good.  Wait till he wants a holiday.
hell have more chance of a holiday on £10 a hour than if he was on the dole,anyway £6 a hour in a factory =£240 a week =£12500 a year, £10 a hour for 30 hours cleaning windows =£300 a week x 48 weeks =£14400 so with 4 weeks holiday and working 10 hours a week less hes £2000 better off


Assuming he can work for 30hrs a week 48 weeks of the year.  On a contract of employment it's a given when your self employed you need the customers, the circumstances to work, and the gumption to work.

Simon.

Re: Undercutting is starting
« Reply #8 on: January 13, 2009, 10:23:26 pm »
this is the time to start finding out if others are legit. is he signing on? has he registered his business (if he gets to the  3 month point)?
you have look after you and yours

s.hughes

Re: Undercutting is starting
« Reply #9 on: January 14, 2009, 07:55:21 am »
I find that you have to be really regular. Some years ago I lost a whole road to a w/c, not that he undercut but because he went round saying that your w/c has packed up. I was a few weeks late so they really thought I had and took him on.
They did take me back when they found out and told him where to go.

Re: Undercutting is starting
« Reply #10 on: January 14, 2009, 08:22:12 am »
undercutting happens all the time, I would just add new customers (something I am doing a lot more of now after near on 6 weeks off. some clown is saying I have given up yet all my windows were cleaned when I was off work (benifit of staff) get out there and get new ones, I find people that price shop are not really the customers you want anyway.

SherwoodCleaningSe

  • Posts: 2368
Re: Undercutting is starting
« Reply #11 on: January 14, 2009, 05:39:57 pm »
These customers are cleaned every 4 weeks without fail.  If anything I think the problem would be being too regular.  I've had it happen to me in the past though someone else going around saying I've packed in.  I know undercutting does happen but I think it's stepped up a gear or two recently.

Simon.

AuRavelling79

  • Posts: 26912
Re: Undercutting is starting
« Reply #12 on: January 14, 2009, 05:46:28 pm »
I would also ask my ex-custy if he has public liability insurance and I would have no compunction about reporting him if I thought he was a dole/incapacity benefit cheat.
It's a game of three halves!

craig b

Re: Undercutting is starting
« Reply #13 on: January 14, 2009, 07:06:07 pm »
so true star man....

s.hughes

Re: Undercutting is starting
« Reply #14 on: January 14, 2009, 07:10:36 pm »
These customers are cleaned every 4 weeks without fail. If anything I think the problem would be being too regular. I've had it happen to me in the past though someone else going around saying I've packed in. I know undercutting does happen but I think it's stepped up a gear or two recently.

Simon.
Yes I would say its best to do every 5 or 6 weeks

MSTAV

  • Posts: 366
Re: Undercutting is starting
« Reply #15 on: January 14, 2009, 08:10:22 pm »
10 pound per hour is quite good money to be on. Most of my jobs have been under 10 pound an hour in the past.  I reguly look in the papers to see the job market etc  and there are few jobs paying over 10 pound per hour especialy for unskilled people, most are min wage or under 8 quid. most of my mates earn under 10 per hour and do fine for thereselfs.

Nathanael Jones

  • Posts: 5596
Re: Undercutting is starting
« Reply #16 on: January 14, 2009, 08:14:21 pm »
£10 an hour isn't actually £10 in your pocket though is it,.. take out Tax, VAT, equipment, workwear, vehicle costs etc etc and that's 50% of your money gone before you get home!

I don't believe any (Honest) self employed man with a family can survive on £10 an hour.

MSTAV

  • Posts: 366
Re: Undercutting is starting
« Reply #17 on: January 14, 2009, 08:22:28 pm »
10 an hour on paye isnt in your pocket either. still have to pay tax on it. I was just saying that its quite good money as long as your doing  min 40 hour weeks. if you chuck a saturday in aswell its just short of 500 a week so not bad at all.

craig b

Re: Undercutting is starting
« Reply #18 on: January 14, 2009, 08:45:31 pm »
doing 40 hours a week in this game is hard...
yous will have to worry about the people who need to put food on the table...until they get ther head above water..and know what thats life get used to it...let them under cut... alot people have had it cosy for to long
in this world you have to do what you have to do....

groundhog

  • Posts: 1806
Re: Undercutting is starting
« Reply #19 on: January 14, 2009, 09:10:33 pm »
if you chuck a saturday in aswell its just short of 500 a week so not bad at all.

Please tell me your joking!!!! Under £500 for a 6day week is good money? My mate who is a plumber does that in a day, and I'm not joking!!