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Old 14-05-2014, 07:59   #1
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MASSIVE price difference!!!

What gives? I priced out a very specific exhaust job that I need to have done. I went straight to the source for both quotes. Neither is a boatyard. The two companies gave me MONUMENTALLY different pricing. Is this typical?
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Old 14-05-2014, 08:01   #2
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Re: MASSIVE price difference!!!

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What gives? I priced out a very specific exhaust job that I need to have done. I went straight to the source for both quotes. Neither is a boatyard. The two companies gave me MONUMENTALLY different pricing. Is this typical?
Yes indeed! Especially if a shop is busy or doesn't like to do the work you will get a price that makes it lucrative for them.
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Old 14-05-2014, 08:23   #3
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Re: MASSIVE price difference!!!

I find the least attractive aspect of boat/yacht ownership is that many/most service providers think you are fair game. Part of the reason I am in the process of selling my boat is that I am tired of being ripped off for every thing I need done, even though I try to do most things myself. It also pisses me off that despite high prices (like $85/hour for unskilled basic labor for bottom paint, cleaning and the like), there is no concept of customer service in the industry. You need to beg for help, then wait and wait. So in a nut shell I am sick of being ripped off for third rate service. I plan to charter and let somebody else deal with the yards and the maintenance problems. Get used to it GG, this is what you are buying into!!
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Old 14-05-2014, 10:46   #4
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Re: MASSIVE price difference!!!

gg

I've found that the low bidder is often times under bidding a job knowing that they are going to have to either cut corners, or end up needing more money to finish the job.

I'm sure you see this all the time in your real estate life with contractors.

I personally would rather pay a little or even allot more for a job and have it done right than have to deal with the "issues" left over from the low bidders work.

I would also rather pay by the hour than by the job. I know there is a risk of abuse in this method, but I feel that there are always things uncovered during teardown and would rather have the job done right than done poorly because I'm holding someone to a fixed bid price.
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Old 14-05-2014, 10:59   #5
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Re: MASSIVE price difference!!!

I know some contractors purposely bid low as they know they will make it up in change orders.

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Old 14-05-2014, 10:59   #6
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Re: MASSIVE price difference!!!

You’re a newbie wantabe so you have a Big $ sign on your forehead. We sub contact about 40% of our work, 5 millions dollars, and the prices vary quite a bit, depending on the shop, their work load and what it is. So a lot depends on what the exhaust change is and if it really needs to be done at a given time? We usually try to work with their schedule if we can. I modified the Eagle exhaust, changed from dry to wet, but I used our shop and a local auto exhaust place over a 3 month window as the Eagle exhaust is above the water line.

So go back and share with the higher bidder and ask for the reason why. So you know you are comparing apples to apples. My feeling even if they stay with the price you might learn gain some knowledge as to what grade/kind of metal they are using. There are many grades and thickness of metals and the hard the metal the hard it is to handle and weld. So there might be significant reason why the difference.
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Old 14-05-2014, 11:22   #7
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Re: MASSIVE price difference!!!

Take your time, the low bid may not end up being the cheapest, or best deal. I would take a hard look at the quality of the workmanship. Time can also be a big factor in the price. If you want it yesterday, it is always more expensive.
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Old 14-05-2014, 11:28   #8
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Re: MASSIVE price difference!!!

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you have a Big $ sign on your forehead.



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Old 14-05-2014, 11:38   #9
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Re: MASSIVE price difference!!!

You are wise to go outside the marine industry for quotes on the work needed, GG. I replaced the exhaust headers on my CAT 330D's by going to a couple of guys who worked on commercial boats. They worked off the clock from their regular job, got a great discount on the parts needed through a fisherman supply outlet in Seattle and the work they did was about 60% below what a yard or the CAT dealership quoted me.
Don't forget to get references on the folks you hire to do the work, shop around for price on parts and watch what they do... the fact that you care enough to oversee the work usually means you will get value for your investment as well as learning something. Don't hesitate to ak the mechanics questions. Good luck,GG... Phil
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Old 14-05-2014, 17:43   #10
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Re: MASSIVE price difference!!!

Thanks guys for all the good advice. Although I know from my real estate world that prices can vary greatly, this situation is intriguing me. I did figure out, after reviewing my quotes, that part of the price discrepancy is that the high guy is charging me quite a bit in installation labor, whereas the lower guy told me that he would do the installation free of charge. I don't think many customers order direct from him. I kind of got the impression that he fabricates for yards and ships the parts to them for install. He definitely got a kick out of me being a female and calling him, that helped. His price to fabricate was also less than the other guy, and also less than what a 3rd company had quoted.
The high guy also came from a recommendation so who knows if there is a kickback built in.
I also found it interesting that the high guy took 2 days to write up an estimate and needed all my info, but the low guy gave me a price after 5 minutes, a few questions and a quick review of my photos. But I did feel like he was very experienced with the wet tail system and described it exactly as I have been told.
Phil, your right about the grade of metal, I'm going to double check that. The first guy said they are busy right now. The second guy told me that he has the parts in stock and could start right away, so maybe that helped too.
I know for sure to always price around
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Old 14-05-2014, 18:38   #11
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Re: MASSIVE price difference!!!

I would ask each of them why the other guy's quote is so different (maybe without identifying them). The answers will tell you a lot.
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Old 14-05-2014, 18:54   #12
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Re: MASSIVE price difference!!!

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I also found it interesting that the high guy took 2 days to write up an estimate and needed all my info, but the low guy gave me a price after 5 minutes, a few questions and a quick review of my photos. But I did feel like he was very experienced with the wet tail system and described it exactly as I have been told.
Phil, your right about the grade of metal, I'm going to double check that. The first guy said they are busy right now. The second guy told me that he has the parts in stock and could start right away, so maybe that helped too.
I know for sure to always price around
And maybe the second guy has no other work and the high guy has plenty of other jobs lined up.
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Old 14-05-2014, 20:01   #13
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Re: MASSIVE price difference!!!

Well, of course the person with the expensive estimate will subcontract the job to the inexpensive one
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Old 14-05-2014, 20:43   #14
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Re: MASSIVE price difference!!!

Well here's one in the same theme. My wife decided to replace our windscreen which was 10 mm perspex. I doubted it would bend to the curvature required without moulding, even though the guy at the plastics place assured her it would - which it didn't - but that's another story. Anyway, after a week of trying to find someone to mould it she gave up and went back to the supplier of the 10 mm and negotiated a price for the perspex alone in 6 mm with no cutting charge as compensation. Went to pick it up yesterday and sales girl was going to charge more for the same job in 6 mm than last week's 10 mm and was very adamant that that was the charge and it was correct. This all got resolved in the end but no doubt both prices differed by time sheet differences.

Back on topic, I've spent most of my working life surrounded by professional estimators and I think you will find that vastly different quotes occur between bidders for many reasons. Some that come to mind for outrageous pricing are:
  • The job is a PITA and they don't really want it
  • It's something outside the usual line of work and they aren't setup to do it.
  • Someone goofed on the quote (both too expensive or too cheap)
  • You came across as either desperate or a sucker
  • They have too much work at this time and don't need your business
  • The company really, really needs your business for some reason (too cheap)
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Old 14-05-2014, 20:45   #15
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Re: MASSIVE price difference!!!

If the guy who you believe fabricates parts for yards is who you have the best feeling about, ask him to give you the material specs as well as which yards he has provided fabricated parts for then call them, ask to speak to the yard super or whoever does the ordering for fabbed parts and ask what is good about this particular guy, how long have they been doing business with him and what negatives do they have. Check with the engine manufacturer to make certain the material specs for the exhaust parts are what they would recommend. That should give you enough info to sleep at night. Do you have a comptent local where the boat is lying who can also check the completed work for integrity? Failing that, can you get the field mechanic of the engine manufacturer to check the work after it has been completed? May cost a couple of bucks for the inspection but well worth it if you don't have experience in welding and bending large diameter piping. Just some random thoughts, GG... cheers, Phil
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