# What the H*LL is "Standardized Pricing"



## JFMURFY (Sep 16, 2012)

I hope the learned ones can shed some light on purpose of "Standarized Pricing" in the P&P market. 

What is the purpose of going thru the motions of providing a bid if the end result is a forgone conclusion? 

To me the traditonal relationship of Contractor/Client is being diminished and is fast approaching that of Employee/Boss when a client informs you what they will pay for a particular service a Contractor provides.


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## PropPresPro (Apr 12, 2012)

JFMURFY said:


> I hope the learned ones can shed some light on purpose of "Standarized Pricing" in the P&P market.
> 
> What is the purpose of going thru the motions of providing a bid if the end result is a forgone conclusion?
> 
> To me the traditonal relationship of Contractor/Client is being diminished and is fast approaching that of Employee/Boss when a client informs you what they will pay for a particular service a Contractor provides.


Let me guess; FAS rehab contractor?


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## SwiftRes (Apr 12, 2012)

JFMURFY said:


> I hope the learned ones can shed some light on purpose of "Standarized Pricing" in the P&P market.
> 
> What is the purpose of going thru the motions of providing a bid if the end result is a forgone conclusion?
> 
> To me the traditonal relationship of Contractor/Client is being diminished and is fast approaching that of Employee/Boss when a client informs you what they will pay for a particular service a Contractor provides.


Is a Realtor no longer an independent contractor because they agree to a set %? 

Is an inspector not an independent contractor because they do inspections for a set, say, $50 price?

If an independent contractor sets their prices, say, $20 for an oil change at a lube shop, $100 per wheel for brakes, etc. does that eliminate the independent contractor status?

While I agree that going through the motions of providing a bid is pointless when there is standard pricing, I disagree that set pricing diminishes the independent contractor.


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## JFMURFY (Sep 16, 2012)

PropPresPro said:


> Let me guess; FAS rehab contractor?


No guessing about it... Right on the button.


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## JFMURFY (Sep 16, 2012)

SwiftRes said:


> Is a Realtor no longer an independent contractor because they agree to a set %?
> 
> Is an inspector not an independent contractor because they do inspections for a set, say, $50 price?
> 
> ...


Can't see the comparison your trying to make above? Each of the above, the person offering the service is setting their fee's... not the Client. 

I send you an bid request saying I got a damaged house, an I want a bid from you to make repairs. But I'm only gonna pay you $150 to repair 60" the cabinets replacing 4 doors and refisnish and staining, $ 500 to replace the refrigerator with an 18/cf GE brand, and replace 5 interior prehung 80x30 doors $120/ea. I think you'd politely tell me yur not interested.


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## STARBABY (Apr 12, 2012)

JFMURFY said:


> Can't see the comparison your trying to make above? Each of the above, the person offering the service is setting their fee's... not the Client.
> 
> I send you an bid request saying I got a damaged house, an I want a bid from you to make repairs. But I'm only gonna pay you $150 to repair 60" the cabinets replacing 4 doors and refisnish and staining, $ 500 to replace the refrigerator with an 18/cf GE brand, and replace 5 interior prehung 80x30 doors $120/ea. I think you'd politely tell me yur not interested.


 
right on! There must be people doing it at there pricing. I did rehad for them years ago and wouldn`t do now with them kind of prices


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## JFMURFY (Sep 16, 2012)

STARBABY said:


> right on! There must be people doing it at there pricing. I did rehad for them years ago and wouldn`t do now with them kind of prices


I still do work with them... but you got get quite "inventive" in culling out the bad work...


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## GTX63 (Apr 12, 2012)

They don't have experienced pros looking at your bid with the same knowlege you have. With so many bids to review, they are using young men and women who's only experience in the field came from two 90 minute training sessions in the meeting room down the hall from their cubicle, which was given by Human Resources when they were hired. It removes much of the risk from their end. They print out some binders and lay them out on everyones desk, so that they can match your bid to what they have declared is the correct pricing for the work in your area. Welcome to the McDonald's dollar menu.


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## Craigslist Hack (Jun 14, 2012)

Corelogic, LPS, and AMS are all the same with this standardized pricing. Corelogic and LPS make you include your cost estimation software bids to justify your price. The cost estimation software is expensive and takes more time. 

It appears they are trying to prevent guys from pricing bad work really high. They get themselves in a bind where they have to rely on a certain contractor and don't have other options so this is their way of beating down his pricing. 

This practice to me is the most infuriating of them all.


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## thanohano44 (Aug 5, 2012)

Doberman Properties said:


> Corelogic, LPS, and AMS are all the same with this standardized pricing. Corelogic and LPS make you include your cost estimation software bids to justify your price. The cost estimation software is expensive and takes more time.
> 
> It appears they are trying to prevent guys from pricing bad work really high. They get themselves in a bind where they have to rely on a certain contractor and don't have other options so this is their way of beating down his pricing.
> 
> This practice to me is the most infuriating of them all.


If you become xactimate cert you can find a great paying job with benefits in restoration/commercial construction. In AZ starting at $100k per annum


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## Craigslist Hack (Jun 14, 2012)

thanohano44 said:


> If you become xactimate cert you can find a great paying job with benefits in restoration/commercial construction. In AZ starting at $100k per annum


Really? Around Gilbert, Chandler, or Flagstaff? I would move tomorrow!:thumbup:


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## Wannabe (Oct 1, 2012)

Theres tons of jobs for persons willing to really "learn" xactimate!

My son took a job at $75,000 with full benefits, car provided, cell phone provided, laptop provided AND 3 weeks vacation. 

THAT was after giving up a $60,000 job estimating for another company 

Not bad for 26 in this days economy... IMO


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## Craigslist Hack (Jun 14, 2012)

Wannabe said:


> Theres tons of jobs for persons willing to really "learn" xactimate!
> 
> My son took a job at $75,000 with full benefits, car provided, cell phone provided, laptop provided AND 3 weeks vacation.
> 
> ...


That is pretty good!

I would probably take a pay cut if I could make my living without contractors and other crews.


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## Splinterpicker (Apr 18, 2012)

JFMURFY said:


> I hope the learned ones can shed some light on purpose of "Standarized Pricing" in the P&P market.
> 
> What is the purpose of going thru the motions of providing a bid if the end result is a forgone conclusion?
> 
> To me the traditonal relationship of Contractor/Client is being diminished and is fast approaching that of Employee/Boss when a client informs you what they will pay for a particular service a Contractor provides.


When labor and industries looks at that type of document ( standardized pricing ) and the fact that you have to get it done in X amount of days, They ( nationals) are blending the line between independent contractor and employee to the point of invisability.


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## Splinterpicker (Apr 18, 2012)

GTX63 said:


> They don't have experienced pros looking at your bid with the same knowlege you have. With so many bids to review, they are using young men and women who's only experience in the field came from two 90 minute training sessions in the meeting room down the hall from their cubicle, which was given by Human Resources when they were hired. It removes much of the risk from their end. They print out some binders and lay them out on everyones desk, so that they can match your bid to what they have declared is the correct pricing for the work in your area. Welcome to the McDonald's dollar menu.


BId it out and when they want to beat it down just hold fast. ASk the FOHS ( fresh out of Highschool ) person what a bid is and have themselfs gore themselfs on their own sword.

*bidpast participle, past tense of bid *

Verb:

Offer (a certain price) for something, esp. at an auction: "dealers bid a world record price for a snuff box".
Utter (a greeting or farewell) to: "a chance to bid farewell to their president".
Noun:An offer of a price, esp. at an auction.Synonyms:_verb_. order - command - invite - ask - offer
_noun_. offer - tender - attempt


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## JFMURFY (Sep 16, 2012)

Splinterpicker said:


> BId it out and when they want to beat it down just hold fast. ASk the FOHS ( fresh out of Highschool ) person what a bid is and have themselfs gore themselfs on their own sword.
> 
> *bidpast participle, past tense of bid *
> 
> ...


 
Lay-off the pipe man... it's affecting your writing ability.


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## JFMURFY (Sep 16, 2012)

thanohano44 said:


> If you become xactimate cert you can find a great paying job with benefits in restoration/commercial construction. In AZ starting at $100k per annum


 
What does Xactimate offer that an experienced estimator can't put together in this market with an Excel spreadsheet... is it organizaiton, the take-off, or what?


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## Wannabe (Oct 1, 2012)

JFMURFY said:


> What does Xactimate offer that an experienced estimator can't put together in this market with an Excel spreadsheet... is it organizaiton, the take-off, or what?


All of the above. Basically 99% of Insurance Companies "require" XM8 (Xactimate) and most commercial projects are requiring (because of performance bond underwriting is through Insurance Companies). 

I love/hate XM8.....I can whip through 90% of estimates quickly but those darn roof sketches HATE me. If it wasn't for everything in the estimate being based off the sketch then I would absolutely love the program EXCEPT for the cost.


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## JFMURFY (Sep 16, 2012)

Wannabe said:


> All of the above. Basically 99% of Insurance Companies "require" XM8 (Xactimate) and most commercial projects are requiring (because of performance bond underwriting is through Insurance Companies).
> 
> I love/hate XM8.....I can whip through 90% of estimates quickly but those darn roof sketches HATE me. If it wasn't for everything in the estimate being based off the sketch then I would absolutely love the program EXCEPT for the cost.


I've always done'em on Exce or in my Professional days Timberline... Just looked at the Xactimate website viewed their on demand P&P presentation on the P&P module... but it sounded like you would need to add the Repair module for Insurance claim work. What I'm trying to find out is...do you load your own local costs of sub quotes, and of course what's the cost of the program?


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## Splinterpicker (Apr 18, 2012)

JFMURFY said:


> Lay-off the pipe man... it's affecting your writing ability.


 
What are you talking about?? the definition of a BID was taken off the web


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## JFMURFY (Sep 16, 2012)

Splinterpicker said:


> What are you talking about?? the definition of a BID was taken off the web


My mistake...LOL... if it's taken off the web...it's gotta be gosbel then


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## Wannabe (Oct 1, 2012)

JFMURFY said:


> I've always done'em on Exce or in my Professional days Timberline... Just looked at the Xactimate website viewed their on demand P&P presentation on the P&P module... but it sounded like you would need to add the Repair module for Insurance claim work. What I'm trying to find out is...do you load your own local costs of sub quotes, and of course what's the cost of the program?


Exactimate has that P&P module but I never used. When it first came out I had full access for 1 month and "of course" the price amounts were lower than the daily repair rates so I refused to purchase module. 

Every line item in Xactimate can be changed to a manually input price or you can use a line item that states "bid item" and you input the description/price. 

It is pricey IMO. $1500 a year if paid annually or $300/month +/-. We always pay annually since its half the price BUT the monthly may have dropped a little since a lot of contractors complained..or so I heard.


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## JFMURFY (Sep 16, 2012)

It is pricey IMO. $1500 a year if paid annually or $300/month +/-. We always pay annually since its half the price BUT the monthly may have dropped a little since a lot of contractors complained..or so I heard.[/QUOTE]

Dam that's expensive... Not seeing cost/benefit yet. So it sounds like its not a Program per say... more of a Service Program or what?


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## thanohano44 (Aug 5, 2012)

JFMURFY said:


> It is pricey IMO. $1500 a year if paid annually or $300/month +/-. We always pay annually since its half the price BUT the monthly may have dropped a little since a lot of contractors complained..or so I heard.


Dam that's expensive... Not seeing cost/benefit yet. So it sounds like its not a Program per say... more of a Service Program or what?[/QUOTE]

I would suggest getting it if you do more than PP work.


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## thanohano44 (Aug 5, 2012)

Doberman Properties said:


> Really? Around Gilbert, Chandler, or Flagstaff? I would move tomorrow!:thumbup:


East Valley. Gilbert, Mesa, Tempe, Phoenix, Chandler. Not sure about the slim Flagstaff market.


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