This confuses me, and I see it happening over and over again. Why do companies do this to themselves, just to generate activity?
I guess dealing with the construction industry, layoffs at the end of a project are just a fact of life. If we don't have another job ahead of us, we lay off the personnel and go home until the next one comes along. It allows the contractor to keep income in pocket for the startup costs on the next one rather than bleeding it off in unproductive payroll.
Yes, the industry has become leaner and decidedly meaner in the past four years. I don't think we will ever see the degree of development again, at least here on the Gulf Coast, until the next paradigm shift in the way we do business.
Last week I received a phone call from another surveyor who called me a lowballer.
He explained to me that he provided a bid on a mortgage survey and the client called him back and informed him that I could do it for 1/2 the cost that he quoted.
I just told the other surveyor that I was not a lowballer, that just maybe he was gouging the market and his clients.
Back in the day (4-5 years ago) we did a lot of subdivisions (short, not long..that is, 4 or less lots) and had several other surveyors sending people our way simply because they didn't want to get involved with the hassle of doing them. And they are a hassle. So we became pretty proficient at pricing them. A couple, three years ago we were asked to supply a quote for a parcel near by and it came in at about $10,600. A few weeks later I got a call from another firm asking what we had bid and they said they had been within literally $100 of us.
He said he was just checking because the owner of the property told him he had received a bid for #3,200.00
I was flabbergasted! Either the owner got shafted of the surveyor is working for about $0.25/hr.
I get a call about once a month from someone that has found another surveyor that will do some work for about 1/2 to 1/3 of what I cost it out at and we just tell them they had better go for it as we cannot touch it, but to be careful what they are contracting for.
Reminds me of a joke I once heard, at least I think it was a joke....
The governor in Illinois wants a fence put up around the mansion. Three contractors show up to offer bids. The first guy says it'll be $3000 for materials and labor. The second guy says it'll be $4000 for materials plus labor. The third guy (from Chicago) says it'll be $10000.
The governor asks why $10000 and what does that include. The third guy leans in and says, "For $10000 I'll sub to the first guy and we can split the extra $7000."
Alta is not a ski area in Utah
Good one Perry.
The last time an attorney asked me if I would sign a paper stating I had done an alta survey on the acre, I said, "Nope." He said, "Well, that's settles that." I said "Yup."
The companies Low Balling are cheating their employees of benefits, good pay, and other benefits. As well as cutting corners. Other side is they loose their butts on contracts. The way to beat them is to offer their good employees a better job. Let them keep loosing money on jobs. Report them to the board when the cut corners and screw up a survey. Another one will take their place, but we can hope honor and professionalism wins out. I've worked for low ballers, and no one stays with them long. They get no loyalty when the screw their employees and their fellow Surveyors.