For those who have seen my tweets this evening, you’ll know I am writing this post in sheer frustration at this industry and how it operates.
My frustration stems from earlier on in the day, when I went to go deliver a quote to a customer for a composite door and side light. I was quoting the door at £1350 for rosewood both sides, fully glazed side light with obscure glass. About right I thought. When I dropped the quote off, the customer thought we are rather expensive as they had another quote from another company for £900. NINE HUNDRED POUNDS! And this apparently included VAT and fitting!
Just to state right now. My frustration is does not come from losing the job. Business is brisk at the moment and one door isn’t going to make or break our year. My frustration is the sheer stupid pricing of some companies in our industry.
Our margin was less than a fifth on that contract. I kept costs as low as I could because I knew we were up against local competition who are renowned for undercutting. But there was no way we would have been able to match that. By the time you have taken away material cost, fitting, ancillaries, sales commission and VAT, what money is there left to make?
This industry really does make life difficult for itself and is intensely hypocritical. One the one hand we are all complaining about the lack of any decent profit margins on jobs, yet on the other hand there are companies that are STILL clearly pricing without any profit margin whatsoever! You either want to be in business or don’t! Do not play with the careers and jobs of you and your workforce and business in such a reckless and stupid manner.
These are come of the reactions to my tweets earlier on this evening:
@peterdoran01: Can’t be a recognised company. Is the customer getting a IBG ? I would suggest not. It’s a joke
@ChristopRussell: dirty. They just want to get the money in! Companies selling too cheap are the ones in trouble
@NigelGrantUpvc: Door stop int, door ? Far to cheap, ever for me. With low overheads !
So clearly, there is more than just me who thinks £900 for a door and side light with fitting and VAT is too cheap. Come on industry, get your act together! Stop being scared of 4 digit figures, grow a pair and get selling properly!