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

 
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Old 09-08-2017, 10:21 PM   #21
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I have a $350 minimum (this site has ruined me), and everything else is bid by the hundred.
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Old 09-09-2017, 03:56 PM   #22
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I round up to the nearest odd dollar. A few studies I've read indicate that an odd number "appears" less made up than an even number.
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Old 12-15-2017, 10:29 PM   #23
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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.
What is it?
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Old 12-15-2017, 10:34 PM   #24
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


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What is it?
$6.66
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Old 12-16-2017, 09:05 AM   #25
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I have tried different things and it seems that when I don't have a round number, nearest $100, the homeowner seems to want to bargain with the price. Say it's $1,750, the homeowner asks if I do it for $1,700. So I have come to my conclusion that I will round to the nearest $100.

Also, I used to give quote one price for the work I do. I have lately started breaking it out. Say the unit is $2,200 and then I show an install price. Before I just quoted the total. Waiting to see how that works.
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Old 12-16-2017, 09:51 AM   #26
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I round up to the next 100. ..don't care what HO's think about the number. In fact as of late I like using a flat 1000 estimate. i.e, $10k, $12k. I dislike playing around with numbers in general so I keep it simple.

IMO I'd like to see coins go extinct. they ain't worth chit these days and nuttin' but a pain in rear.
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Old 12-24-2017, 01:53 PM   #27
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Quote:
Originally Posted by gastek View Post
I have tried different things and it seems that when I don't have a round number, nearest $100, the homeowner seems to want to bargain with the price. Say it's $1,750, the homeowner asks if I do it for $1,700. So I have come to my conclusion that I will round to the nearest $100.

Also, I used to give quote one price for the work I do. I have lately started breaking it out. Say the unit is $2,200 and then I show an install price. Before I just quoted the total. Waiting to see how that works.
Actually this is a model that many people use when they know the business is a negotiating one. For example, say you want to sell something for $1,700 to $1,750 as you mentioned above, then price it at $1,785 just so you can take a little off in order to have the HO feel they negotiated with you. It they say $1,700 then you can just go to $1,750 and work from there.

Of course there are many permutations of this, and definitely changes as the jobs are less expensive.

And keep in mind to ensure to negotiate something back as the price goes down. Perhaps it is a customer review in writing as your first request, and then up it to a video review if you lower it a second time? My point is, try to find value in exchange for lowering the price as opposed to just lowering it to lower it. Good luck.
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Old 01-05-2018, 02:01 PM   #28
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


Quote:
Originally Posted by gastek View Post

Also, I used to give quote one price for the work I do. I have lately started breaking it out. Say the unit is $2,200 and then I show an install price. Before I just quoted the total. Waiting to see how that works.
I've been doing similar, lately. I will not itemize it all in writing, but when meeting with the customer, I'll (sometimes) mention the price of the material. I'll mention the number of days work, plus my day rate for me and helpers. Sometimes.

The number seems a lot less made up, customer feels like I am showing my cards. Which I am, so trust is built.

At the same time, I usually do round off to nearest 1,000
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Old 01-06-2018, 03:55 PM   #29
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I don't think it matters.
Guessing that the estimator worries about this a whole lot more than the buyer does.
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Old 01-06-2018, 04:15 PM   #30
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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
I don't think it matters.

Guessing that the estimator worries about this a whole lot more than the buyer does.


Actually it's the little details like this that do matter. They all add up.
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Old 01-07-2018, 02:33 AM   #31
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I apply my markup and use that number. I have found that referrals pay less attention to the price than those simply shopping around. I like to give an exact number, as I have found that it discourages negotiating.
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Old 01-09-2018, 07:06 AM   #32
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


I have to be precise to the last penny in my business but I think that everyone should too, regardless of the job they do. I think you can go to the nearest dollar to make it easier.
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Old 01-09-2018, 11:09 AM   #33
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Re: Pricing: Do You Round Your Price Or Give Exact Price To The Penny?


The exact dollar?

I don't get it. See, I go to look at a job and even though I specialize, am deeply ensconced within a tight little niche and I know this stuff inside and out...it's still all approximate.

Patio that size? Could take 7 days. We finish in 5, I'll be rich. If it takes 9 days, I'll still make money. More than 10 days would be a failure, financially.

My material costs are likewise hard to pin down. Natural stone--each supplier will price this material differently. So I'll figure out what I think that mat will cost, round up on the quantity needed, round up on what the price per unit is expected to be, then add a bit extra on top of that,

If I gave exact prices, I'd be giving out made up numbers. Rounding off to the nearest 500 or 1,000 sort of feels more honest, for me and the type of work I do.

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