{"id":5138,"date":"2017-11-25T08:00:00","date_gmt":"2017-11-24T23:00:00","guid":{"rendered":"https:\/\/norimen.net\/wordpress\/?p=5138"},"modified":"2026-05-15T20:19:46","modified_gmt":"2026-05-15T11:19:46","slug":"estimate-middle-point-construction","status":"publish","type":"post","link":"https:\/\/norimen.net\/en\/estimate-middle-point-construction\/","title":{"rendered":"The Midpoint of a Quote | Pros and Cons of High and Low Unit Prices"},"content":{"rendered":"

Hello, everyone.<\/p>\n

This is Enta.<\/p>\n

On my way back from Nagano, a question came to mind.<\/p>\n

It's about money, though, lol<\/p>\n

Is a low unit price bad, or is a high unit price bad?<\/span><\/strong><\/span><\/p>\n

Well, I suppose how people perceive it depends on their perspective.<\/p>\n

So, I took it upon myself to weigh the pros and cons.<\/p>\n

\"\"<\/p>\n

Advantages and Disadvantages of Low Unit Prices<\/h3>\n

Prime Contractor<\/h4>\n

1. Profitable<\/p>\n

2. The salaries of employees at the general contractor may increase.<\/p>\n

3. Improving Technical Skills (Study, Certifications, etc.)<\/p>\n

4. Employee Retention (Comprehensive Salaries and Benefits)<\/p>\n

5. Investment in Machinery<\/p>\n

6. Subsidies for Other Loss-Making Operations<\/p>\n

7. Bonus<\/p>\n

Subcontractor<\/h4>\n

1. Decline in quality (due to rushing)<\/p>\n

2. Reduced Safety (Due to Rushing)<\/p>\n

3. Decline in employee salaries (the company isn't making a profit)<\/p>\n

4. Poor maintenance of equipment (unable to replace consumables)<\/p>\n

5. Declining employee motivation (low wages)<\/p>\n

6. Departures from the Industry<\/p>\n

7. Delays in the construction schedule due to a shortage of personnel<\/p>\n

Advantages and Disadvantages of High Unit Prices<\/h3>\n

Prime Contractor<\/h4>\n

1. It's not profitable<\/p>\n

2. My salary will go down<\/p>\n

3. The company will post a loss, which will lower its financial review score (making it harder to win bids).<\/p>\n

4. Decline in Technical Skills<\/p>\n

5. Employee Turnover<\/p>\n

6. Aging of Machinery<\/p>\n

7. Deterioration of Employee Benefits<\/p>\n

8. No bonus<\/p>\n

Subcontractor<\/h4>\n

1. Profitable<\/p>\n

2. Improved Quality (A Trend Toward Greater Care)<\/p>\n

3. The accident rate decreases because employees aren't rushed.<\/p>\n

4. Enhancing Machine Maintenance<\/p>\n

5. We are able to provide adequate training for new employees<\/p>\n

6. My salary will go up<\/p>\n

7. A bonus is paid out<\/p>\n

\u2014\u2014 \u25c7 \u2014\u2014 \u25c7 \u2014\u2014 \u25c7 \u2014\u2014 \u25c7 \u2014\u2014 \u25c7 \u2014\u2014 \u25c7 \u2014\u2014\u25c7 \u2014\u2014 \u25c7 \u2014\u2014 \u25c7 \u2014\u2014<\/p>\n

I'm sure there are other things as well, but is this roughly the gist of it?<\/p>\n

I suppose a well-balanced estimate is the best one, isn't it?<\/p>\n

I want to make even a little profit. I want to avoid losses as much as possible.<\/span><\/strong><\/span><\/p>\n

However, we can't cause any trouble for the general contractor.<\/strong><\/span>I want the general contractor to make a profit.<\/strong><\/span><\/p>\n

I hope that by doing a good job and earning a high score, it will help us even a little bit in the next bid.<\/strong><\/span><\/p>\n

That's what I'm thinking.<\/p>\n

But things don't always go that smoothly in this world, do they?<\/p>\n

With work already scarce and the prime contractor desperate, low bids and price wars are the norm.<\/p>\n

It's the same with subcontractors\u2014if one side cuts prices, the other side follows suit.<\/p>\n

Price competition is really tough...<\/p>\n

With so many specialists in our field, I guess the challenge going forward will be figuring out where our company fits in.<\/p>\n

Maybe trying to figure out the right balance for the estimate while thinking that is one approach...<\/p>\n

Giving estimates is tough. It\u2019s a skill in itself. I wonder if it\u2019s also a kind of psychological battle?<\/p>\n

\"\"<\/p>\n

Will a single quote land me the job\u2014or leave me with nothing to do?<\/p>\n

A while back, a senior salesperson once told me that there are times when you have no choice but to take a deal, even if it means lowering the unit price.<\/p>\n

That reminded me of it.<\/p>\n

How about we set out on a journey to find a middle ground with a well-balanced quote? lol<\/p>\n

 <\/p>\n

See you later.<\/p>","protected":false},"excerpt":{"rendered":"

Hello, everyone. It\u2019s Enta here. On my way back from Nagano, a question popped into my head. It\u2019s about money, actually (lol). Is it worse to have a low unit price, or a high one? Well, I guess it depends on your perspective. So, I took it upon myself to weigh the pros and cons. Unit\u2026<\/p>","protected":false},"author":2,"featured_media":5145,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[124,751,908,909,910,911],"class_list":["post-5138","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-124","tag-751","tag-908","tag-909","tag-910","tag-911"],"acf":[],"yoast_head":"\n\u898b\u7a4d\u306e\u4e2d\u9593\u70b9\uff5c\u5358\u4fa1\u9ad8\u4f4e\u306e\u30e1\u30ea\u30c3\u30c8\u30fb\u30c7\u30e1\u30ea\u30c3\u30c8 - \u65b0\u30a8\u30f3\u30bf\u306e\u6cd5\u9762\u7ba1\u7406\u587e<\/title>\n<meta name=\"description\" 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