As many of you know I am a contractor as well, specializing in decks and fences. A couple of weeks ago, I had a potential client who wanted a custom built gazebo/shed. He showed me pictures of what he wanted and we discussed all the details.
I did a plan,put together a price and sent him a two page proposal(I like to get all the details right so there is no argument later). My price was $22,000.00. Plus HST. Out of that, my material was over $9000.00. Labour, overhead, wsib, insurance, and profit made up the rest.
HE comes back to me with a price of $16,000.00, all cash, no tax. "It's a reputable company" he says, but won't tell me who, although he send me the quote with the price and name blacked out. This quote is 5 lines long. Who ever it is, assuming the structure is similar, is doing the labour, prep, and profit, for less than I am paying my men alone!.
How can you compete when they are willing to work off book and for peanuts?