Delivering Bad News

the hague

Hey everybody,
I'm not new to the trades but somewhat new at running my business. How do you all deliver the "bad news" to clients. Show them the grand total right up front? Break down everything first? Here is another thought, does anyone have a link to a good article which explains why good construction is so expensive? I'd like to give something like that to clients at our first meeting. I'm never comfortable with watching the jaw-drop when I deliver a bid. Here in the Bay Area/California, I'm charging $75/hr for labor which doesn't seem unreasonable with all things considered but it adds up fast.

dougchips

If you believe that it is bad news it will come across as bad news.
If you believe that you are offering them the best products and service on the market at a very fair price then it will come across that way. You are protecting their largest investment (home) from cheap hacks using cheap labor and materials.

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Celtic

Part of the job is selling the "product".
If you do not believe your product merits the price you seek, this will be reflected to your customer.

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KillerToiletSpider

I bill labor at $175.00 an hour on the rare occasion that I send out a T&M bill.

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a2zhandi

Or you could wait a week to turn it in. And let your competition turn theirs in first. Then you'll get to see them smile
But this method doesn't work well for me cuz I'm the competion;((

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Michaeljp86

I agree, why do infomercials alwayse use the same people? Because they have the attitude and voice to make you want it, they make it sound like a good deal. Act positive, like theres only one way to do it which is your way, the best of the best.

L. B. Condulet

Before I deliver my price, while the customer is still conscious, I explain in great detail all the wonderful things I plan to do and all the craftsmanship that will go into their job. Then I say "I can do all this for" and I tell them my amazing price.

the hague

Thanks everyone who has chimed in so far. I don't know why I feel so guilty about charging what my work is worth. I'm often tempted to lower my rates when I see people who are nice and have nasty damage to their homes. I guess it's just something i'll have to get used to. From what i'm hearing, I just need to believe that the work is worth what i'm charging and that will convey itself. Thanks again.

Bone Saw

not meaning to sound condescending or like a smart ass, but the day you get out of the mindset that you are hocking your wares out on the street, and get into the mindset that these people are contacting you, soliciting to you their need for your services will be the day that it all falls into place and makes sense to you. Their budget or lack thereof should be of no concern to you unless you are in the buisness of budget consulting.

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thom

No matter what price you give it will be high. That's the way people are.

If you tell them $30,000 they will think $20,000 is fair, but if you start by telling them $20,000 for that same job they will think $12,000. No one will ever tell you "Gee, I thought it would be more".

Check the price of the maid services in your area then decide if your professional expertise is overpriced or not. Around here (Albuquerque) maid services go for $50/hour. In comparison, a competent tradesman, with a truck and $25,000 (or more, probably a lot more) worth of tools, years of trade school and study, and licensing, at $100 doesn't sound so bad.

vinylguy

heck a gallon of milk and a loaf of bread cost to much today ! everything cost to much it not your fault or thiers thats just the way things are. as long as your giving them the best service product and craftsmanship out there then your under bidding. i always price condition tell them a story about the last thing you bought and only had a twenty for it but it ended up costing you $50 make them think its going to be $50,000 then give them your price for $40,000 and they will be pleasently surprised

Guardcom.net

When I first started my business in the 1970's I asked a master electrician how much I should bill for a job. He gave me a short, one line answer that I never forgot:

"Do a good job. Bill accordingly."