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#1 |
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Capra aegagrus
Trade: Remodeler
Join Date: Jan 2008
Location: Central Pennsylvania
Posts: 9,758
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Do You Round Off Your Bids?
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? |
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#2 |
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And I do electrical, too!
Trade: DEFENDER OF FREEDOM! ADVOCATE OF LIBERTY!
Join Date: Jan 2009
Location: Iowa
Posts: 5,397
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Re: Do You Round Off Your Bids?
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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Site : the area or exact plot of ground on which anything is, has been, or is to be located. Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision. Cite : To mention in support, proof, or confirmation; refer to as an example. |
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#3 |
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Chief outhouse engineer
Trade: mason
Join Date: Jan 2009
Location: NW Indiana
Posts: 985
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Re: Do You Round Off Your Bids?
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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D K & Sons The maintenance schedule for brick 1. Stand back and say "man that looks nice!" 2. Repeat as often as needed. |
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#4 | |
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KemoSabe
Trade: residential framing/siding/general carpentry
Join Date: Feb 2009
Location: Vineland, New Jersey
Posts: 12,828
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Re: Do You Round Off Your Bids?Quote:
$23,376.39 Too many numbers looks more expensive to me.
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__________________________________ "Walking the fine line between production and perfection" __________________________________ |
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#5 |
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A bit abrasive.
Trade: Painting
Join Date: Sep 2008
Location: KC KS/MO
Posts: 1,529
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Re: Do You Round Off Your Bids?
I round by the 5's.
Only in dollar amounts, not change.
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My advice: Hire a real painter to do it. |
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#6 |
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Maker of fine kindling
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Re: Do You Round Off Your Bids?
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. |
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| The Following 3 Users Say Thank You to Gus Dering For This Useful Post: |
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#7 |
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LC Australia
Trade: Building
Join Date: Dec 2006
Location: Canberra
Posts: 439
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Re: Do You Round Off Your Bids?
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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"It's better to die on your feet than to live on your knees" |
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#8 |
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Pro
Trade: General Remodeling
Join Date: Jan 2006
Location: North Tonawanda, NY
Posts: 269
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Re: Do You Round Off Your Bids?
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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http://www.wolffhomerepair.com " Of course I don't look busy, I did it right the first time " |
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#9 |
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DavidC
Trade: Remodeler
Join Date: Feb 2008
Location: NNY
Posts: 1,917
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Re: Do You Round Off Your Bids?
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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www.CookContractingLLC.com |
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| The Following User Says Thank You to DavidC For This Useful Post: | Floorwizard (03-25-2009) |
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#10 |
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General Contractor
Trade: New Home Construction-Additions-Remodeling
Join Date: May 2007
Location: NJ
Posts: 2,790
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Re: Do You Round Off Your Bids?
$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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I never lost a cent on the jobs I didn't get!
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#11 | |
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Capra aegagrus
Trade: Remodeler
Join Date: Jan 2008
Location: Central Pennsylvania
Posts: 9,758
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Re: Do You Round Off Your Bids?Quote:
And that reason, por favor? Just IMO, six-eight bucks seems like too trivial a gimme to tip the scales. |
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#12 |
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Pro
Trade: Construction
Join Date: Mar 2006
Location: Eugene, OR
Posts: 3,019
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Re: Do You Round Off Your Bids?
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 |
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#13 | |
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General Contractor
Trade: New Home Construction-Additions-Remodeling
Join Date: May 2007
Location: NJ
Posts: 2,790
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Re: Do You Round Off Your Bids?Quote:
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I never lost a cent on the jobs I didn't get!
Last edited by greg24k; 03-25-2009 at 02:19 PM. |
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#14 |
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DavidC
Trade: Remodeler
Join Date: Feb 2008
Location: NNY
Posts: 1,917
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Re: Do You Round Off Your Bids?
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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#15 |
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Pro
Trade: Construction
Join Date: Mar 2006
Location: Eugene, OR
Posts: 3,019
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Re: Do You Round Off Your Bids?
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 |
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#16 |
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LRG WoodCrafting
Trade: Master Sawdust Producer
Join Date: May 2005
Location: Windsor Locks, Connecticut
Posts: 13,211
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Re: Do You Round Off Your Bids?
Whatever my bid comes up, that's what I show. If it has odd pennies in there - so be it.
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Sawdust Follows Me Everywhere http://lrgwood.com Custom Cabinets in Hartford County Connecticut |
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#17 |
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Pro
Trade: Remodeling
Join Date: Mar 2007
Location: Northeast, Pa
Posts: 1,906
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Re: Do You Round Off Your Bids?
Most of the time to the penny. I leave the change until final payment on draws.
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'The trouble with our liberal friends is not that they're ignorant; it's just that they know so much that isn't so.' - Ronald Reagan |
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#18 |
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Pro
Trade: Outdoor D/B
Join Date: Jun 2005
Posts: 1,884
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Re: Do You Round Off Your Bids?
I never end up with pennies since I round up all my job cost as I go item by item.
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#19 |
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Certified Remodeler
Trade: Kitchen bath remodeler
Join Date: Jul 2007
Location: North Oaks,MN
Posts: 3,207
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Re: Do You Round Off Your Bids?
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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#20 |
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DavidC
Trade: Remodeler
Join Date: Feb 2008
Location: NNY
Posts: 1,917
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Re: Do You Round Off Your Bids?
That's interesting. Any reason for adding the 6?
Good Luck Dave
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