|
|
Thread Tools | Search this Thread | Display Modes |
|
|
#1 | |
|
Bah Humbug!
|
XYZ Is Cheaper And Doing The Same Thing As You
So I'm doing my call backs wednesday while it rains... basically calling everyone on my list who hasn't told me yes or no. One specific gentleman calls me back a few hours after I left a message on his machine. His message was similiar to "XYZ Remodeling company said is doing the same thing but they are doing it for $8,000 even." My price was $9,312. That was kind of shocking, while I usually expect to be a bit higher than everyone, not $1,300 higher.
So anyways I gave him my usual response. Scope of work and quality of materials will dictate price. He insisted they were doing the same. I asked him to email me their proposal so I could review it so that he could make an apples to apples comparison. Anyways take a guess at what I found? I found a full page long list of differences between their system and my own. Check it out: Quote:
Last edited by Grumpy; 09-15-2006 at 02:09 PM. |
|
|
|
|
|
|
#2 |
|
Pro
Trade: Custom deck builder
Join Date: Aug 2005
Location: Colorado Springs, Colorado
Posts: 4,325
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
How he could think that your bid was exactly the same is amazing to me. Just let the ignorant homeowner get a crappy roof job. Next time he will call you. Or tell his neighbors about you instead of the guy he used.
__________________
Robert Shaw Colorado Springs Custom Decks Colorado Custom Decks Custom Composite Decks |
|
|
|
|
|
#3 |
|
Pro
Trade: Outdoor contracting: fences and decks
Join Date: Jan 2006
Location: Toronto, Ontario, Canada
Posts: 1,437
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
Grumpy, I wish I could do that. Most customers would never give me someone else's quote.
Your rebuttal is clear, concise, and I presume factual (I'm not a roofer). If it was me, I wouldn't hesitate to call you back and offer to "split the difference" (LOL) I've seen quotes written on the back of a business card "300 sq ft deck: $5000". I have to compete against that sort of thing. I do like you: a plan, a detailed list of specifications, a schedule of payments, a list of references, and such. Still, I sometimes lose by $50 bucks! What I REALLY hate is when they say" Steve, we would really rather deal with a professional company like you. You really seem to know what you are doing, and we love your design. So, if you can match the price, we'll give you the job!" Of course, that price is 20% less than mine. What do you do?!! Last edited by Stone Mountain; 09-15-2006 at 02:51 PM. |
|
|
|
|
|
#4 | |
|
Plays Well With Numbers
Trade: Bookkeeper for GC, Residential Const, HVAC & Plumber
Join Date: Jul 2006
Location: CT
Posts: 629
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
Grumpy -
Excellent letter. It is clear and concise. I am not sure if you sent it yet - but I just wanted to show ya a typo I underlined. Also, I don't care for your closing line. I would put something along the lines of I hope this information has clarified your concerns between the two proposals. We at Grumpy Co. pride ourselves in our professional and curteous workmanship, our attention to detail, and our excellent history of customer satisfaction. We look forward to the opportunity to be your roofing company. Quote:
|
|
|
|
|
|
|
#5 | |
|
Pro
Trade: General Contractor
Join Date: Sep 2006
Location: MA
Posts: 108
|
Re: XYZ Is Cheaper And Doing The Same Thing As YouQuote:
Just wanted to show you a typo too.
__________________
Peladu's responses are refreshing after a long day at work. If votes count, I vote to give him a little space to practice his art. This space can be in a dark basement so long as he has access to the internet. - Dougchips |
|
|
|
|
|
|
#6 | |
|
...jammin
Trade: Rock Disciple
Join Date: Jun 2005
Location: Cape Cod, Massachusetts
Posts: 5,235
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
I think that was an excellent response and attempt at educating the consumer
I hope they appreciate it I personally enjoy being able to break down others bids like that for potential customers Often they become actual customers
__________________
Signature Quote Quote:
|
|
|
|
|
|
|
#7 |
|
Plays Well With Numbers
Trade: Bookkeeper for GC, Residential Const, HVAC & Plumber
Join Date: Jul 2006
Location: CT
Posts: 629
|
Re: XYZ Is Cheaper And Doing The Same Thing As You |
|
|
|
|
|
#8 |
|
Pro
Trade: General Contractor
Join Date: Sep 2006
Location: MA
Posts: 108
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
It's Lifebouy! Yuck!! I'll shut up now.
__________________
Peladu's responses are refreshing after a long day at work. If votes count, I vote to give him a little space to practice his art. This space can be in a dark basement so long as he has access to the internet. - Dougchips |
|
|
|
|
|
#9 |
|
Plays Well With Numbers
Trade: Bookkeeper for GC, Residential Const, HVAC & Plumber
Join Date: Jul 2006
Location: CT
Posts: 629
|
Re: XYZ Is Cheaper And Doing The Same Thing As You |
|
|
|
|
|
#10 |
|
Pro
Trade: General Contractor
Join Date: Sep 2006
Location: MA
Posts: 108
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
I'm a bad boy!! TGIF!!
Only two more work days left in the week.
__________________
Peladu's responses are refreshing after a long day at work. If votes count, I vote to give him a little space to practice his art. This space can be in a dark basement so long as he has access to the internet. - Dougchips |
|
|
|
|
|
#11 |
|
DGR,IABD
Trade: Electrical; Commercial and Residential Service
Join Date: Mar 2005
Location: Central PA
Posts: 9,680
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
I can see how a customer would have thought it was the "same thing" before you sent your letter/email. He wanted a roof and two skylights. You said you'd install a roof and two skylights, and so did the other guy. To him, it's the same thing. Construction sales is more education and less sales. Good job Grumpy!
|
|
|
|
|
|
#12 |
|
Back from the dead...
Trade: Paperhanger/Painter
Join Date: Oct 2003
Location: St. Louis, MO
Posts: 6,544
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
Yeah, excellent follow up.
But let me jump on tha bandwagon with: |
|
|
|
|
|
#13 |
|
Contractor
Trade: Excavation, Foundation, Concrete
Join Date: Feb 2006
Location: Maryland
Posts: 3,278
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
Nice follow up letter, very informative.
Did you get the job? |
|
|
|
|
|
#14 |
|
Bah Humbug!
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
So far no news. I have a cold, caught from my daughter, but I intend to call him today and ask if he fully understands my last email.
MD, I'm still confused how he could think it was the same thing because all he had to do was read our proposals and see it's not. We both gave clear scopes of work. I understand what youa re saying though. In his mind either way he is getting a roof with skylights. Thanks for all the typo info. Obviously somehow some of it slipped through Outlook's spellc heck. I live by spell check, as everyone who has read any of my posts can understand why. |
|
|
|
|
|
#15 | |
|
...jammin
Trade: Rock Disciple
Join Date: Jun 2005
Location: Cape Cod, Massachusetts
Posts: 5,235
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
Yeah the technical aspects may be blurred in his mind
He's reading "blah blah blah skylights, blah blah blah roof" ...or it's possible he was just trying to get you to come down in price But usually those don't give up the other proposals so easily
__________________
Signature Quote Quote:
|
|
|
|
|
|
|
#16 | |
|
Bah Humbug!
|
Re: XYZ Is Cheaper And Doing The Same Thing As YouQuote:
Realistically I could knock off 16% and still make my desired profit margin, 11% is what I pay my salesmen, and 5% is marked up for negotiation. However I'm playing hard ball, and he's going to have to work for that 5%. There's no way I am waiving my commission though! |
|
|
|
|
|
|
#17 |
|
Class A Contractor "BLD"
Trade: Remodeling and home improvements
Join Date: Feb 2006
Location: Virginia Beach, Va.
Posts: 1,286
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
Grumpy,
These types of potential clients have two options with my company. They get the work done by us at our price (no negotiations except for change in scope of work) or they can take their chances with another company. Your rebuttal to the other companies estimate was excellent. Now what you need to do is let them come to you so you do not look desperate. When they call back your intial price is firm.
__________________
Looks like some pros were here. |
|
|
|
|
|
#18 |
|
DGR,IABD
Trade: Electrical; Commercial and Residential Service
Join Date: Mar 2005
Location: Central PA
Posts: 9,680
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
Why do you say this? Sounds like an ego thing. If I needed work, I don't care if they thought I was desperate or not. I'd scrap for every spec of work if I had to.
|
|
|
|
|
|
#19 |
|
tile mason
Trade: tile design & installation
Join Date: Apr 2006
Location: Lowell, MA
Posts: 1,818
|
Re: XYZ Is Cheaper And Doing The Same Thing As You
there's really not much you can do but cus the homeowner out while in your truck.
When it comes to that I let them know, there's plenty of goofs that'll play beat my price, so keep my card next to your lowest bidders contract. I do repairwork also. You'll get the business when the lowballers screw up. Then you can double the price.
__________________
Matt with Cupan Custom Tile & Paint of Lowell, Massachusetts Design and installation of ceramic tile and natural stone for floor, wall, and countertops (978) 601-8774 | cupantile@gmail.com | view tile pictures and more |
|
|
|
|
|
#20 | |
|
Class A Contractor "BLD"
Trade: Remodeling and home improvements
Join Date: Feb 2006
Location: Virginia Beach, Va.
Posts: 1,286
|
Re: XYZ Is Cheaper And Doing The Same Thing As YouQuote:
Not an ego thing, just an experience thing. In Grumpys senario (which I have been in many times), he has already rebutted the price challenge/question raised by HO. No need to do anymore follow up cuz it will probably lead to the senario Stone Mountain eluded to earlier in this post, "We like you better but can you do it for the other companies lower price?" Hope this helps.
__________________
Looks like some pros were here. |
|
|
|
|
![]() |
| Thread Tools | Search this Thread |
| Display Modes | Rate This Thread |
|
|
| Go to Page... |
