Pricing: Do You Round Your Price Or Give Exact Price To The Penny?

 
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Old 09-02-2017, 07:37 PM   #1
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Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


You do your calculations, run your numbers, estimate the job, and come up with a price. The dollar amount you came up with, for illustrative purposes, is $7,436.56. What price do you give the customer: $7,436.56, $7,437.00, $7,500.00, etc.? Pricing is an entire psychological process with tons of studies done, but have you tried one way over the other and see greater success?
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Old 09-02-2017, 07:49 PM   #2
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I would probably round up the estimate to $7450. If the estimate is over ten grand then I would probably round up to the next $500.
I wonder about the guys who price jobs in the millions, do they just tack on another hundred thousand.

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Old 09-02-2017, 07:55 PM   #3
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I run my numbers, and round to the nearest hundred

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Old 09-02-2017, 08:14 PM   #4
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Nothing in my numbers has cents.

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Old 09-02-2017, 08:38 PM   #5
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I do both depending on my mood. But normally it would be something like 3,753.00.

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Old 09-02-2017, 08:41 PM   #6
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I've never been a fan of rounded numbers. A price of say 41,473.00 seems more thought out than a price of 42,000.00.

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Old 09-02-2017, 08:52 PM   #7
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


If its for a homeowner i usually round it off. When i sub i just input the footage and bill whatever it comes out to.
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Old 09-02-2017, 09:24 PM   #8
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Quote:
Originally Posted by Californiadecks View Post
I've never been a fan of rounded numbers. A price of say 41,473.00 seems more thought out than a price of 42,000.00.

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Old 09-02-2017, 10:15 PM   #9
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


To the dollar
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Old 09-03-2017, 12:41 AM   #10
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Im with CaliforniaDecks. Never do a round a number. It just seems like it was pulled outta the air.
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Old 09-03-2017, 06:40 AM   #11
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I miss read the original post. I thought it was referring to estimating, which I will round up.
When it comes to billing and the final price then I price it to the cents, no rounding up.
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Old 09-03-2017, 09:42 AM   #12
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Never felt like people were concerned with me rounding to the nearest $100.
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Old 09-03-2017, 09:52 AM   #13
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


The only time I ever include cents is when I do time and material. The material number is to the cent which then transfers to the total they owe me. I do mark up material but still include the cents when generating that number.

I never include cents when bidding. Always to the dollar. I run the numbers and then look at the final number. I sometimes alter it because the number looks dishonest. If the total comes out to $9,9___ and anything I would put it as something like $10,2__ and something on the bid. Even if it wasn't my goal to come in just under a number, I never want it to appear that way so I go above it.
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Old 09-03-2017, 09:19 PM   #14
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


If the number is say 6245, ill say out loud, 6245, on my phone and all right, then ill look at them and say 6200.
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Old 09-04-2017, 12:39 PM   #15
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I round the price to the nearest dollar...but I do the sales tax exact. Often, I will take things down a penny if I end up w/ an odd number for the tax and getting 50% deposit.
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Old 09-04-2017, 12:42 PM   #16
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Quote:
Originally Posted by Ohio painter View Post
I would probably round up the estimate to $7450. If the estimate is over ten grand then I would probably round up to the next $500.
I wonder about the guys who price jobs in the millions, do they just tack on another hundred thousand.


We round everything to the nearest thousand, usually up unless it's less then $50.

And yes, we just had a job ($4.8m) where we tacked on an addition 500k, but when you do that it adds to gl, gc's and bonds so even when you add that much it only increases the budget 400k.


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Old 09-04-2017, 12:46 PM   #17
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I do small jobs, list them as line item, and round up to the nearest $10.

I do the same on bigger jobs- roof at $8840 for example.


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Old 09-06-2017, 11:21 AM   #18
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


To the nearest dollar.
One of my estimators has a lucky number he always finishes with.
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Old 09-06-2017, 11:26 AM   #19
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Quote:
Originally Posted by Fishindude View Post
To the nearest dollar.
One of my estimators has a lucky number he always finishes with.
The generic 9? Walmart's 7? The unknown 2?
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Old 09-08-2017, 07:06 PM   #20
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I round up.

Makes it easy to go ya I can nock a hundred off that price for you

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