Too many lowballers! What the @#&%

How many other people are running into the same thing? People wanting the jobs done for dirt prices. I am sure that anyone who has ever swung a hammer now are out in the field bidding jobs and not knowing how to and that is the reason for ridiculous bids. Some are in for wake up call when their roof leaks and fly by nite guy is gone.I had a call and went to bid a job and this guy asked me what I paid my guys and how much would I want an hour to do his house. Short of telling the guy off I just left. People using this economy crap for their own gain just pitiful. So what do others think?

If you are educating your customers, overcoming price to a certain point by breaking it down to the ridiculious can overcome a few hundred dollars. Im talking around 500 unless they are dead set on price and when you prequalify them over the phone you find this out. How, asking if they have established a budget for the roof and asking if they had a professional come out and look at the scope of whats needing to be done.

Lowballers have been around since the start of roofing business, someone is always doing the job cheaper than the next guy, its life. Adapt and overcome price. SOmetime you can not get the guy to budge but in most cases you have some wiggle room and you can work something out. If you are 1500 more than the rest then you need to check your pricing points and rework them. Price have gone down this year and either you follow the pack or you WILL be left behind. Im n ot saying i sell cheap because i dont im usually 500 to 800 more than the next guy but i am a salesman, not an estimator.

:twisted:

Thanks just frustrating.

I had a guy stop by the job I was working last week and ask me for a price on his property. I looked at it on friday, about 25 square, 1 story easy walker, but has a low slope portion about 1.5 in 12 on the back 7 square. he wants water and ice and 3 tabs on 4 inch reveal, I told him I don’t like it and I’ll do it but won’t guarantee that portion of the roof. I told him 5600 bucks and for 5900 I’ll do the low slope in SA mod bit he says, “is that your best price? I’m looking for best price”. I said “I’m sure you could find someone to do it cheaper and good luck.” Some people atleast if they had more tact could talk me down some. When they’re rude just walk away. No one likes losing jobs but you have to make a living.

I would have told him that my Best Price was $9,800.00 and would include a whole bunch more of goodies.

Nah…

I wouldn’t have “Told” him anything.

I would have scheduled an appointment with him to review the proposal package and scope of work offered and justified the significant value he was receiving.

Ed

its really insane when all materials and cost have increased a LOT. that these clowns are droping price and creating a confused custumer. we run into this all the time and loose a lot of jobs, but also get a lot as well. Trying to qualify can save time and reduce stress.

7500.00 would be a gift…

Here in the Atlanta, GA we have alot of storm chaser with all different approaches. One comes to mind where he gets customers to sign a contract with all the information regarding materials, price, and time frame are all blank. But in print the customer agrees to let him do the job for whatever the insurance company will approve and him covering $500 of the customers deductable even when the insurance company has subtracted that from the amount before writing the homeowner a check. It is not signed by a sales person or owner of the company, just the customer. Also wants homeowner to sign over ins. check to him. This contract also states that if the homeowner does not use him, they must pay a 20% of approved claim for his time and trouble. Does this sound like any scams you have ever seen?[list=][/list]

No the only scam part I see is the paying 500 of the homeowners deductable. I offer a claims assistance contract all the time. The homeowner has the agreement with the insurance company to pay the deductable and there is nothing I can legally do to change that.

[quote=“ed the roofer”]I wouldn’t have “Told” him anything.
I would have scheduled an appointment with him to review the proposal package and scope of work offered and justified the significant value he was receiving.

Ed[/quote]

Features & Benefits, Ed. Features & Benefits (i.e. good answer).

As to the contract you’re mentioning, I agree. Only the part about paying someone’s deductible seems wrong to me.

As to the ‘pay 20% for cancellation’, how would YOU like it if you jump through hoops of fire to get the maximum value on a claim only to have the customer say “Thanks, but I found someone who will now step in @ the last moment, take your hard won adjustment, & give me the “free floor mats & undercoat spray”… so I’m going to use them instead of you. You should be on a small stick in a candy store, 'cause you sure do look like a sucker.”

The whole idea of this is a penalty to slow them down & to think twice more so than to prevent them from jumping ship.

ya, defanently a non refundable deposit. just like buying a truck, so you or the dealership cant back out. with a roof, once the h.o. signs, the gears start turning @ the roofing co. w/ scheduling & all.sure, the customer can back out anytime if they find a better price & lose the 20 - 50 percent they layed down. each state has different laws on how many days the h.o. has to back out.

Is a blank contract binding, with no scope of work to be done listed? Only signature is that of the customer. Did the salesman screwup this one?

pretty slick talker to get the ins. check right out the customers hands.cracked that pocketbook or wallet open like a walnut.thats why im a roofer & not a salesman,cant stand them guys.out here they get 10 percent of the total job price as soon as the customer signs.

I am new to this forum and have been reading through all the old threads. I found this one and wanted to add something to it.

I am in Illinois and this is part of the Illinois Compiled Statutes dealing with this matter.

815 ILCS 513/15)
Sec. 15. Written contract; costs enumerated requirements; contents. Prior to initiating home repair or remodeling work for over $1,000, a person engaged in the business of home repair or remodeling shall furnish to the customer for signature a written contract or work order that states the total cost, including parts and materials listed with reasonable particularity and any charge for an estimate. In addition, the contract shall state the business name and address of the person engaged in the business of home repair or remodeling. If the person engaged in the business of home repair or remodeling uses a post office box or mail receiving service or agent to receive home repair or remodeling business correspondence, the contract also shall state the residence address of the person engaged in the business of home repair or remodeling.
(Source: P.A. 94‑490, eff. 1‑1‑06.)

(815 ILCS 513/20)
Sec. 20. Consumer rights brochure.
(a) For any contract over $1,000, any person engaging in the business of home repair and remodeling shall provide to its customers a copy of the “Home Repair: Know Your Consumer Rights” pamphlet prior to the execution of any home repair and remodeling contract. The consumer shall sign and date an acknowledgment form entitled “Consumer Rights Acknowledgment Form” that states: “I, the homeowner, have received from the contractor a copy of the pamphlet entitled ‘Home Repair: Know Your Consumer Rights.’” The contractor or his or her representative shall also sign and date the acknowledgment form, which includes the name and address of the home repair and remodeling business. The acknowledgment form shall be in duplicate and incorporated into the pamphlet. The original acknowledgment form shall be retained by the contractor and the duplicate copy shall be retained within the pamphlet by the consumer.
(b) For any contract for $1,000 or under, any person engaging in the business of home repair and remodeling shall provide to its customers a copy of the “Home Repair: Know Your Consumer Rights” pamphlet. No written acknowledgment of receipt of the pamphlet is required for a contract of $1,000 or under.
(c) The pamphlet must be a separate document, in at least 12 point type, and in legible ink. The pamphlet shall read as follows:

"HOME REPAIR: KNOW YOUR CONSUMER RIGHTS

As you plan for your home repair/improvement project, it is important to ask the right questions in order to protect your investment. The tips in this fact sheet should allow you to protect yourself and minimize the possibility that a misunderstanding may occur. 

AVOIDING HOME REPAIR FRAUD

Please use extreme caution when confronted with the following warning signs of a potential scam:
(1) Door‑to‑door salespersons with no local connections who offer to do home repair work for substantially less than the market price.
(2) Solicitations for repair work from a company that lists only a telephone number or a post‑office box number to contact, particularly if it is an out‑of‑state company.
(3) Contractors who fail to provide customers references when requested.
(4) Persons offering to inspect your home for free. Do not admit anyone into your home unless he or she can present authentic identification establishing his or her business status. When in doubt, do not hesitate to call the worker’s employer to verify his or her identity.
(5) Contractors demanding cash payment for a job or who ask you to make a check payable to a person other than the owner or company name.
(6) Offers from a contractor to drive you to the bank to withdraw funds to pay for the work.

CONTRACTS

(1) Get all estimates in writing. 
(2) Do not be induced into signing a contract by high‑pressure sales tactics. 
(3) Never sign a contract with blank spaces or one you do not fully understand. If you are taking out a loan to finance the work, do not sign the contract before your lender approves the loan. 
(4) Remember, you have 3 business days from the time you sign your contract to cancel any contract if the sale is made at your home. The contractor cannot deprive you of this right by initiating work, selling your contract to a lender, or any other tactic. 
(5) If the contractor does business under a name other than the contractor's real name, the business must either be incorporated or registered under the Assumed Business Name Act. Check with the Secretary of State to see if the business is incorporated or with the county clerk to see if the business has registered under the Assumed Business Name Act. 
(6) Homeowners should check with local and county units of government to determine if permits or inspections are required. 
(7) Determine whether the contractor will guarantee his or her work and products. 
(8 ) Determine whether the contractor has the proper insurance. 
(9) Do not sign a certificate of completion or make final payment until the work is done to your satisfaction. 
(10) Remember, homeowners should know who provides supplies and labor for any work performed on your home. Suppliers and subcontractors have a right to file a lien against your property if the general contractor fails to pay them. To protect your property, request lien waivers from the general contractor. 

BASIC TERMS TO BE INCLUDED IN A CONTRACT

(1) Contractor's full name, address, and telephone number. Illinois law requires that persons selling home repair and improvement services provide their customers with notice of any change to their business name or address that comes about prior to the agreed dates for beginning or completing the work. 
(2) A description of the work to be performed. 
(3) Starting and estimated completion dates. 
(4) Total cost of work to be performed. 
(5) Schedule and method of payment, including down payment, subsequent payments, and final payment. 
(6) A provision stating the grounds for termination of the contract by either party. However, the homeowner must pay the contractor for work completed. If the contractor fails to commence or complete work within the contracted time period, the homeowner may cancel and may be entitled to a refund of any down payment or other payments made towards the work, upon written demand by certified mail. 
Homeowners should obtain a copy of the signed contract and keep it in a safe place for reference as needed. 

IF YOU THINK YOU HAVE BEEN DEFRAUDED OR YOU HAVE QUESTIONS
If you think you have been defrauded by a contractor or have any questions, please bring it to the attention of your State’s Attorney or the Illinois Attorney General’s Office.
Attorney General Toll‑Free Numbers
Carbondale (800) 243‑0607
Springfield (800) 243‑0618
Chicago (800) 386‑5438".
(Source: P.A. 91‑230, eff. 1‑1‑00.)

This last section of statute is required to be provided to all HO’s before execution of a contract, with the HO signing an acknowledgment that they have received it.