I'm The Only Bidder, How Much To Ask For?

john elliott

I did a kitchen for some pleasant people last year, now they want me back to fit out a small room next to the kitchen where they keep the laundry equipment etc (in the UK this is called a utility room)

The kitchen worked out very well, but I didn't charge enough and I encountered several unforeseen problems (live and learn, eh). Anyway, the problem is that they are going to expect my price to be in proportion to what I charged for the kitchen, whereas I know I need to charge quite a bit more. This is not an attempt to recoup my losses on the kitchen, just a reflection of what I need to charge to run a profitable business

As they want the new stuff to match the existing stuff they can hardly as anyone else to bid, and they are going to have to pay whatever I ask for

I'd like to find a way of prefacing my bid with an explanation of why it might be quite a bit more than they were expecting, but haven't found a suitable form of words yet. Maybe I should just ask them how much they were expecting to pay? Or could that lead to an embarrassing loss of face on their part if their price is just too low and I have to ask for more?

Awaiting your suggestions

John

mdshunk

I run into that same situation from time to time. I generally just write it up, without undue explanation or fanfare. If they question you, curtly state, "Yes, prices have gone up some.", and try to leave it at that.

Gordo

John,

Just give them a 'betweener' price. This is a ballpark figure with a low end if all goes well........and a high end when things take longer.

Try to eliminate all the explanations pertaining to the prior kitchen remodel.

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Looks like some pros were here.

mahlere

john, simply price it for what you now know you need to price it for. What sense does it make to cut your price to meet their preconceived notions, in order for you to lose money on it?

All that will happen is that you will do the job at a loss, miss more money on other jobs, become frustrated (because this time you knew it going in) become resentful of your customers and probably really ruin a good relationship.

If they don't like your price, it's better than doing the work and being resentful.

Good luck.

painterjim

Sir, Madam,
Im sorry but I misbid on the last work that I did for you, this price is a fair price to both of us and will allow me to do the quality work I know youve come to expect.

slickshift

Yeah it happens
I strongly agree with mdshunk
Except I wouldn't say "curtly", but rather "with confidence"

You will ether get the job or not
But if you do, at least this time it might be profitable

Also do not assume they expect a lower price than you give them

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Mike Finley

A lot of good answers here. But, Slickshift brings up one really excellent point which shouldn't be ignored:

9 times out of 10 what we think is an issue isn't even on a customers radar. Why stir up a hornets nest if you don't have to?

RobertCDF

They know they got a good price last time... They would like to have the same good price again BUT. They also know that if they dont get the same low price they know they will get the great quality. And they will still come out "ahead" on all the projects. Price the same way you would anyone and if you choose to give a small discount for repeat business feel free too. But dont make it lower just because you did before.

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rino1494

I agree 100%

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dirt diggler

I don't think you're the only one they can get bids from

And they aren't the only ones you can get work from.

Keep it real, dawg

Tom R

I completely agree with with dirt here, - - I've matched up jobs (in the same room, for that matter) by a company who has been on the covers of Fine Homebuilding, - - and judging by their price, - - they probably thought the same thing.

As far as the price, - - charge what you need to make and never look back.

Never charge less for any reason.

Remember, - - you can't lose money on a job you don't do.

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Thewoodman

Remember, - - you can't lose money on a job you don't do.

I Agree with Tom, Why take a job if you will not make money. It's a business not a charity.

wackman

A contractor I know misbid a job and then had the luck of not being called to the mat. A year later the customers called and said they wanted to do it after all. He called me, kicking rocks about what to do, and I told him to tell them "prices have gone up and he'd have to rebid it" and then make the price right.

Well he really misbid the first time because the price over doubled ($1300 to $2800) and the customers had a fit. He called me again and said he had to lower his price that the cost of materials hadn't gone up that much and so on. I said "tell them that all your costs had gone up and don't lower it one bit".

He did lower his price, lost money, was pissed off and I don't think a good taste was left with the customer either.

If he'd stuck to his guns, maybe admitted he'd made a mistake bidding the first time, he'd either have done the job profitably or they could have gone looking elsewhere and seen his new price wasn't that high after all and probably come back to him.

I agree with the rest, never get bullied into lowering your price. Spend that time looking for more work if you are considering lowering your price because you NEED the work. (not what I'm implying in this case, just the only reason I can see to think about lowering your price to get a job).

Wack

rws

I think the best thing to do is to tell them what you told us in your post.

Scott Young

i can't add to the wisdom given here. only to reinforce, ask for what you need. shortcutting yourself will never pay in the long run. (pun intended) when i cut my price, i begrudge doing it unless it is charitable, and then i am glad to do it. i have found that when i begrudge something i am not as careful and i am more likely to not produce as quality work as i know i should.