The Customer Wants A Breakdown

Norrrrrrrrrrrrm

I would be careful how much info you let them have. About 15 yrs ago or more a neighbor asked my father to draw up some plans for a two story garage with two bays. It was a beauty. They guy had money. After two days of drawings and cost estimations he gave him a price and they went over the plans. AFTER they went over the plans he deciced he was too expensive(B.S.). A few weeks later he starts building the damn thing with his brother. My father is still hot today!
Again, be careful how much info you give!!

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DavidC

Good point here. When the bank (or ins. co.) asks the HO to get a breakdown you pretty much have to comply to stand a chance. I will change from a one number bottom line proposal to two numbers, materials = $***.xx, labor = $***.xx. Both figures would include the markup method we normally use. If that isn't enough try asking the banker for a breakdown on the cost of the loan, including commisions and profits.

Good Luck
Dave

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bwalley

I gave a client a bid for a door, he said he was going to try and get his Homeowners insuarnce to cover it, I told him they won't but it was up to him.

He agreed to the price, I ordered the door and the State farm adjuster denied the claim, but told the HO my price was too high, (I didn't take a deposit, and already pre paid for the door) I told the HO to ask the adjuster who would do the door cheaper, the adjuster said he couldn't recommend a contractor but my price was too high.

I told the HO, we could cancel the contract even though I already paid for the door and I would eat it or use it elsewhere and he could get another contractor to do it, HO said he didn't know who ellse to call to do it, I suggested he call the adjuster and have him do it.

Homeowner later calls me and asks me if I am still interested in doing the door as my price wasn't that bad after all, I think he went to Home depot and got a price from them, funny thing is at that time HD didn't have a proper qualifire and they used licensed subs but they were illegaly acting as an unlicensed contractor.

Did the job, client was happy, I then raised my prices and started taking deposits.

If a client doesn't like my price that is fine, don't hire me.

Leo G

Just break it down in section. Foundation, framing, siding, roofing. Or something similar. Don't break it down into labor and materials. They will always think you are making to much. Or as everyone else says, don't break it down, it leads to trouble.

I've only broken down one job, and it helped me get it. It was a new client and he balked at the price. I explained to him that the material for this Mahogany cabinet was pricey. I showed him what I paid and explained I will be marking it up. It is the WalMart mentality. They see these things at WalMart for ungodly low prices and think that you are ripping them off. As soon as he realized that the materials were that expensive I got the job.

I don't like to do it. It takes time and usually leads to nothing good. If they want the breakdown, charge them for it. At least double time.

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dubz

I just likely wasted 20-25 hours (including my subs time), $55 dollars in prints, and a half tank of fuel meeting several times with a guy who insisted on a detailed cost breakdown for a building. He had a set of arch. plans, septic plan and had been through zoning so I figured he was at least mostly serious about doing the job.

The last meeting with him, he has a spreadsheet of me and 5 other guys bids with mine being the lowest and he tells me he is still getting another one. Then he goes through, line by line asking if I could come down further and asks me to do some additional pricing adding back some of the things I took out to try and meet his number. I told him at this point I have too much invested in this for no return and he needs to choose a contractor and then work out these details.

I stuck it out a lot longer than in the past but I need the work.

Greg Di

One word phrase you can always use to avoid the breakdown question:

"We offer comprehensive TURNKEY contracting services to our clients. Just as you can't buy a part of a car you want, you can't buy part of a project, so providing you with a breakdown is useless to you and us."

Wait.

Wait.

Wait.

If they don't say "OK" and insist on it, that's when you leave politely and let them know that they can reach you if need be.

If they don't call back. They did you a favor.

If they do call back, you will book the job and they'll probably be very good people to work with.

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Mr. Mike

You: May I ask why you need the price broke down and how you would like me to break it down for you?

Prospect: They probably will say on there hit back exactly how they want it broke down and not mention why they need it broke down.

You: So then I say no problem we can do that for you May I ask you why you want to know the exact cost of material and labor are you planning on having the materials here for us when we arrive?


Then move on to telling them your not bidding or overcome not giving them a break down like most of the others stated on here.

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outlaw

Don't do it! I have only had problems with this prospect.

Stone Mountain

I am in line for a major backyard job, totaling nearly $40,000.
I gave a breakdown as such:
-demolition of fence: $***

-deolition of 1800 sq ft interlock patio: $***

-removal off site: $2000 allowance for bins

-new wood fence per specifications: $***

-new interlock patio, including
-stone (style such and such, colour yyy)
-base
-drain pipes
-river rock accents $***

-repairs to existing retaining wall, per specifications
$***

-steps to upper gate $***


That's a breakdown which is fair, and I am happy to do. This is the sort of thing many (most) customers expect.
If they want a material breakdown, I just tell them it's half and half. I will not give a breakdown by actual material list.

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skyhook

Give him the breakdown and be prompt about it. Just don't be too specific.

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dakzaag

A detailed list is not a problem, since the project is involved. I would still give a lump sum and not price each item. The prices should change if the customer said ok you do the demo and I want dakzaag to do the rebuild.
I am working on the biggest estimate I have ever done, I keep checking this post to add good ideas to my ever increasingly detailed estimate.
thanks for lots of good suggestions.

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RidgeWalker

From my experience I'd have to say that when a home owner askes for my breakdown it's really code for something else. I don't usualy find they are so intersted in what I'm making. They are unsure about what scope of work is included in the estimate. They just don't know how to word the question for the information they are looking for.

Thier preceptions is. Ok he's asking for X dollars to build an addition. How do I know he's going to do everything he says he's doing? How do I know he's actually using the materials he's verbally said he's using? I'll ask for a breakdown.

That's just my experiance. Take it for what its worth.

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TBFGhost

Agree....most of the time...so I put in writing what I plan on doing with what materials and then the lump sum price at the bottom....yes, this opens the door for them to take it someplace and get the material prices themselfs so they can figure everything out anyway, but like said above, most times, around me, that is usally not their intent. If I get a vibe someone is going to be a PITA...I won't bid the job...Sometimes they feel the need to go get material themselfs, trying to save money. Thats okay, less trips to get things and less I cover under warrenty...I will then take out the my cost for that material, but the orginal mark-up stays b/c the break down does not give the cost of the material.

JTMcC

There are some excellent answers in this thread.
I side with the stance that: I'm selling a finished product and feel free to compare my total price with any others you get. And at the most a vague breakdown into totals on labor, material, etc but I'd never give details of how I determine my price.
I don't deal with homeowners anymore but the large contractors we deal with always want a breakdown (for justification) on change orders, I just simply lay out the differences in total labor and materials to make the change.
Personally I'd be seeing large red flags and alarms would be sounding in my head in your circumstances.
I'd never go to a sub or vender of mine and ask for that info, I either trust them, and like their prices/service or I don't.


JTMcC.

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Snobnd

My breakdown is as fallows.
1 payment due now to set you up on the calendar.
2nd is when I have completed the framing $ sheathing.
3rd is when it is sheet rocked and taped.
4th is when I'm done!
That is the only way I will break it down for the customer.

Tiger

Itemization is common with T&M work, but not in contracting.

Think of all your good customers...did they ever ask for a breakdown? IMO it's a code for...I'm not going to be one of your good customers. It would be different if they wanted to cut 20% off a project & are trying to figure out what to cut out of the project. The breakdown is usually for negotiations to talk you out of 20% while leaving the project the same.

If you're operating at 5-10% net profit like most contractors, that turns the project into a 10-15% loss. You may as well stay home & write them a check for the privilege of looking at their project. At least you'll save wear & tear on your knees & back.

Worse yet, what if a good customer calls & you can't take care of them because you're tied up with the loss job.

bwalley

That reminds me of a handicap conversion I did in a house several years ago, a potential client was looking at houses to buy and needed to know how much it would cost to do a renovation, houses back then were selling very quickly and she needed a price quick.

I ballparked it and then she bought the house, either I mispoke or she misheard, not sure, but there was a big difference, so she asked me for a breakdown.

I used a spreadsheet and gave her a line by line price on everything she wanted.

She took a highlighter and highlighted what she wanted done, I totaled it up, told how much of a deposit I would need, she handed me a check and I started working.

A couple of weeks into the job I met her husband, and found out he was an Attorney, I started getting nervous because I had a job go south with a goofy patent attorney and swore I would never work for another Attorney again, well whenever I asked her for a payment she made it.

On thelast one I gave her a bill and for some reason it didn't show the credit for the down payment, a couple of days go by and I asked her if she had the payment, she said she somehow screwed up and didn't have all of it, but could get me 8 or 9,000 of it, I said Emily, 8 or 9,000 is the balance due, she said your bill shows x amount, and since I paid x already, I still owe 17,000, I said Emily, you gave me $8,000 down, and at first she didn't beleive me and questioned me on it, then she went and looked at some of her check books and then she realized she had written it out of a different account.

She said great I can pay the balance then, she said she was trying to figure out how she blew her budget by $8,000 and tahnked me for being honest, I told her that there is no way I would steal money from a client.

I ended up doing quite a bit of work for them, unfortunately they ended up mving down south and haven't seen them in awhile, they were some of the nicest people I had ever worked for.

One call I got from them was when their A/C broke in a house they were renting while I was doing their job, she called me since she didn't know anyone in the area, and I am not sure if she wanted me to come out that night, but when I told her I would come out and fix it, she was very happy, her son Mike who had MS volunteered to rename the dog after me for fixing their A/C.

Michael her husband was an Attorney from Tennesse and he knew Fred Thompson and said fred was a great guy and in real life he was just like he was on the TV show.

One thing I do like and I forget about is, in my line of work, I get to meet some really nice people, some are jerks but the ratio of good to bad is 98% good to maybe 2% that I would rather not work for again.

GregS

Isn't this usually where Finley comes in and says something about charging for estimates?

If they want a breakdown, charge for it. Tell them if they go with you, you will put that estimate fee towards the job.

RidgeWalker

Most excellant!

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Jason Whipple

Sometimes that's all it takes

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