Have any of you ever confronted a fellow Surveyor about their pricing strategy?
?ÿI??m struggling with that.?ÿ
Local well respected company pricing topographic surveys at ridiculously low amounts.
I??m busy enough now to not miss the jobs we ar co-bidding on but it is setting a sad precedent for our area.
Yep, and it never ends well.
I am of the opinion that street walking whores make more per hour than many surveyors. At least they get paid market rates for when they are getting !@#$ed.
We are in a tough state for prices because so many do not and sometimes outright refuse to charge what the job is worth.
Good luck to you.
If they can provide a good product at that price, you have no grounds to complain, and will have to wait for them to starve.?ÿ But if they deliver a substandard product, which seems likely at rock bottom prices, go get 'em - your board should take an interest.?ÿ
In a recording state, you can check their filed plats to see how well they follow good practices.?ÿ If you aren't in a recording state, get to work lobbying to fix that. Aside from some places charging exorbitant checking and filing fees, recording is very beneficial to the public and the profession.
My $0.00
Don't even mention their pricing. Talk about the quality of the product. If they can produce a quality product for next to no money then they deserve the business. That's the American way. We all know that they can't, of course. Talk about quality and the level of effort/cost is implied.?ÿ
If they can provide a good product at that price, you have no grounds to complain, and will have to wait for them to starve.?ÿ But if they deliver a substandard product, which seems likely at rock bottom prices, go get 'em - your board should take an interest.?ÿ
In a recording state, you can check their filed plats to see how well they follow good practices.?ÿ If you aren't in a recording state, get to work lobbying to fix that. Aside from some places charging exorbitant checking and filing fees, recording is very beneficial to the public and the profession.
My $0.00
Topos don??t get recorded here.?ÿ
I think they might be providing a decent product and are working under the umbrella of an engineering firm.?ÿ
I??ve thought about saying something, but I honestly don??t know if they know how underpriced they are. ?ÿThey could double their prices and still be the low bidder.?ÿ
I don??t want to help in their ignorance?ÿ
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Don't even mention their pricing. Talk about the quality of the product. If they can produce a quality product for next to no money then they deserve the business. That's the American way. We all know that they can't, of course. Talk about quality and the level of effort/cost is implied.?ÿ
I wish it was that simple.?ÿ
Have been informed by the requester of the bid that they were getting what they needed.
Literally less than we were bidding per acre 15 years ago.
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Could it be their Client??ÿ You mentioned they're working under the umbrella of an engineering firm.?ÿ If that engineering firm is feeding them all the work they're doing they may have negotiated some lower rate with them because they don't have to go out and find other work to feed the machine.?ÿ?ÿA good consistent repeat Client that keeps you busy and eliminates the need to spend time and money on marketing and business development can entice a lot of people into lower than average market rates.?ÿ
Could it be their Client??ÿ You mentioned they're working under the umbrella of an engineering firm.?ÿ If that engineering firm is feeding them all the work they're doing they may have negotiated some lower rate with them because they don't have to go out and find other work to feed the machine.?ÿ?ÿA good consistent repeat Client that keeps you busy and eliminates the need to spend time and money on marketing and business development can entice a lot of people into lower than average market rates.?ÿ
Possibly. The client though is a competing engineering firm. I could almost understand if the the topo work was being discounted to obtain the engineering work but this is not the case.
Another scenario: Bid low, win job, foot in door, foot through door, door closes to others, additional work scope arises, get variation, charge royal rates.
Another scenario: Bid low, win job, foot in door, foot through door, door closes to others, additional work scope arises, get variation, charge royal rates.
You are probably right. I can??t understand it under the current climate but who knows?
Why discount the value of a survey in a boom economy?
Don't even mention their pricing. Talk about the quality of the product. If they can produce a quality product for next to no money then they deserve the business. That's the American way. We all know that they can't, of course. Talk about quality and the level of effort/cost is implied.?ÿ
I wish it was that simple.?ÿ
Have been informed by the requester of the bid that they were getting what they needed.
Literally less than we were bidding per acre 15 years ago.
?ÿ
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Just saying - if you go to them and talk price they will laugh in your face - and accuse you of overcharging and attempting to price fix. Talk about quality and make them squirm.?ÿ
Yes this is a never ending problem.?ÿ
I've talked to a number of surveyors about cost. I don't discuss what we charge for a job or what they charge for a job but I do discuss all of the costs that go into operating the business and how important it is to compensate staff well - I remind them that we are competing for employees who have the smarts to work as engineers, computer programmers, accountants, etc. We aren't just competing against each other.
I discuss the cost of C3D, Robotic guns, scanners, insurance packages, IT costs - hardware and software - just list all the software it takes to deliver a good product, vehicles, training, benefits, marketing, support staff, and surveyor compensation.?ÿ
Pay matters. Good pay won't make a mediocre surveyor competent but it will help the young person considering careers keep surveying as a viable option.?ÿ
I discuss how little the cost of the survey influences the viability of the survey. Surveys are NEVER discretionary spending. You either need a survey or you don't and the cost won't make it happen or not happen. I want to encourage this to be a race to the top - not the bottom.?ÿ
I try to make the conversation turn into one about getting enough income to pay more than any engineer makes - attract the best employees and make your life as easy as possible - competent staff allows you to focus your energy on client relationships and business development.?ÿ
I remind them how much others make and how much a house costs, I remind them that we aren't really competitors - we're just in the same market, I pay for their lunch, and I offer to keep the conversation going.?ÿ
Maybe it'll change things and maybe it won't but it'll get them thinking (assuming they have that capacity).?ÿ
The first thought to my mind is to know your own value for what you provide and stick with it. You won??t be the cheapest, and you may not be the most expensive, but you will have work that is worth your time.
PM sent.
Some people do some services as an opening to do all a clients surveying needs and their buddies too.
Others have skills to turn things better than others or have discovered methods.
Some areas it is as the fix is in and that is how they do business.
When they show up fighting battles for absent surveyors, you have a complaint.
Don't even mention their pricing. Talk about the quality of the product. If they can produce a quality product for next to no money then they deserve the business. That's the American way. We all know that they can't, of course. Talk about quality and the level of effort/cost is implied.?ÿ
I wish it was that simple.?ÿ
Have been informed by the requester of the bid that they were getting what they needed.
Literally less than we were bidding per acre 15 years ago.
?ÿ
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Perhaps they are using different methods to acquire the data? I would suspect they are using a drone for the topo data? I can fly 40 acres in about 10-15 mins. Processing only take an hour or so??ÿ
We've been facing that issue for years, and the lowballers still haven't starved. There is a firm in this state that provides very high quality products for about 1/7th of our fee. That's about half our usual profit on a project.?ÿ Their crew chief sleeps in his truck, receives no benefits, and is as happy as can be. I understand that he is paid a fixed fee per project. I guess as long as there are folks willing to do this there will continue to be lowballers. The owner lives in a very nice house, drives a very nice car, and owns a helicopter. Apparently their clients aren't concerned that they have no E&O insurance.?ÿ We try not to compete for the same work as they do, as we obviously can't.
Do the topo cheap.?ÿ
Make money at the engineering end.
Cuts out the surveyor.
Keeps it all "in house".
Strategy.
Surveyors don't have time to sit around, and come up with pricing strategies. We are a "one horse show".
Engineers, on the other hand can sacrifice one cow, and make money with the whole herd.?ÿ
If you get into price war, with engineer, they also make money, client gets it cheap, engineer still gets premium for his stamp...?ÿ
Think this through.
N
Never ever discount your topo cost or any cost for that matter.?ÿ Charge a substantial professional fee and live with it.?ÿ There's not enough time in the day to worry about low-ballers.?ÿ There is plenty of work to go around.
I can't spend my day worrying about somebody down the road, until that somebody competes unfairly. If they are undercutting by doing poor work talk to them. If they are doing good work and making money listen to them...?ÿ
