Do You Round Off Your Bids?

Tinstaafl

So you run the numbers on a prospective job, and being properly anal about accounting for every screw, nail and tube of caulk, you come up with $23,376.39.

How do you bid it? Exact amount, or round up or down? And round by how much?

And do you think it really makes a significant psychological difference to the client?

480sparky

I round off, and I round up when I do so.

Customers aren't that dumb. They know perfectly well it won't be the end of the world if I bid $23,376.39 or $23,400.

Makes keeping track of bids in my noodle a whole lot easier, too. Draws are easier to calculate as well.

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dakzaag

I think that a number down to the penny shows you have tried to account for everything. Rounding the number off suggests you are either guessing or padding the estimate to get an even amount. Either way I think the customer prefers an actual number accounting for everything.

My verbal estimates are in dollars, If I take time to do a full estimate, the amount will be down to the penny.

It is interesting to note that the wealthier the customer, the more likely they want an exact number. I think it is because they are used to counting every dime and expect you to do the same.

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loneframer

$23,400 even. Look at the two numbers next to each other.
$23,376.39 Too many numbers looks more expensive to me.

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WisePainter

I round by the 5's.


Only in dollar amounts, not change.

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Gus Dering

I round up and down with no apparent reason for one or the other except a feeling as to what will close the deal.
I try hard to trust my intuition as much as I can without sacrificing what I know will pay the bills.

Boogga

Having an exact figure such as $35,877.00 shows the future client that you actually worked out a price and not guess it so to speak. If you had $36,000.00 then I think people just believe you are stabbing in the dark.

Also if the price ends in seven like the figure above, it suppose to be more attractive. Any proof of this is what I'd like to see, if anyone has any.

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wolffhomerepair

I usually roung up to the nearest 10 dollars. $33,440 not $33,432. Looks cleaner to me. And as said above 34,000 looks like a guesstimate instead of an estimate.

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DavidC

I just drop the change.

The idea of ending in 7 has me curious if there is anything behind it.

Good Luck
Dave

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greg24k

$956 0r $1,950 or $12,890 and so forth. I never use change in bids and if customer bargains I will reduce to next lower number $900 or $1,900 or $12,800 and there is a reason as to why I structure my numbers this way

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Tinstaafl

These both ring right to me. I almost always chop the pennies off, exception being if I read the client as an extremely detail-oriented precision seeker.

And that reason, por favor? Just IMO, six-eight bucks seems like too trivial a gimme to tip the scales.

BuiltByMAC

To the penny makes no sense...just because you arrive at a more 'whole' number doesn't mean you're guesstimating, it means you understand that there will be waste, there will be materials that you have to buy in bulk but not completely use, there will be variances.

Unless the project is a service call based on T&M, it would be impossible to arrive at an exact number for a remodeling project. People know this and don't have a problem w/ whole numbers.

Like Gus, I use a bit of intuition and past experience when arriving at the final number. And that, my friends, is why the noobs that wander in here asking 'how much per sq. ft.' get torn apart. There's a lot more to bidding successfully than getting a one size fits all sq. ft. price.

Greg, I don't understand your line, "if customer bargains I will reduce to next lower number"
Is that standard practice for you - bargaining w/ customers? I only ask because I've never done it and don't know if it's a regional thing. I've never had a client attempt to dicker price w/ me. They get the price, that's the price I will do the project at.

Mac

greg24k

Bargain is the wrong choice of word...Can you do a little better. Bargain if the price is $1500 and HO tells you do it for $1000 or beat this and you get a job... I don't bargain, period. On jobs under $1000 I consider public relation jobs and most involve minor repairs or rehab work. If it involves painting, or patch work, which I don't like doing, I give all that work to a handyman who I been working with for many years. He gives me things he cannot handle and I give him things I don't want to do. Sometimes my customers recommend me to friends or neighbors, and most of the time I don't even charge them if it's something minor and I can fix it right there and then, if it's something more involved and jobs comes out to be $560 or $730 etc, and they ask me if I can do a little better I will round it off to the lowest number nothing less. I found this to be a very productive practice, and 90% of such jobs I get over $300 in hour and I manage to always leave a smile on HO face.

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DavidC

I did have a client once explain to me that he never paid retail for anything and insisted on negotiating. I explain that we do what we do and it cost what it cost and no negotiations.

Come on, he says, how about a dollar off.

I thought for a moment and countered, .50 and you got a deal.

Great he said and signed the contract. That one did end in 50 cents.

Good Luck
Dave

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BuiltByMAC

That's too funny, David! Guy wasn't gonna be happy until he talked you down in price...good job on your end finding a happy medium - $0.50!

Mac

Leo G

Whatever my bid comes up, that's what I show. If it has odd pennies in there - so be it.

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PA woodbutcher

Most of the time to the penny. I leave the change until final payment on draws.

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ruskent

I never end up with pennies since I round up all my job cost as I go item by item.

silvertree

I always add a 6, so if its $25,432 I make it $25,436.
$579 would become $586, always. Never done pennies.

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DavidC

That's interesting. Any reason for adding the 6?

Good Luck
Dave

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