Do You Price Haggle?

Nathan

I never haggle on my pricing UNLESS someone beats my bid.
Customers will say something like "xyz company beat your price by this much but we would really like to use you guys". In these cases I try to point out the differences between my bid and their bid and if needed I meet them in the middle.

What I've noticed though is that most people are expecting to haggle with me when I give them a quote. I can't stand the thought of giving people an inflated price just so I can come down and make them feel good.

Bottom line is I will never change my business model to include haggling, but I wonder how many of you guys haggle. Also, why do you haggle?

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Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

Grumpy

Do I price haggle? I have a reputation for it. I argue with my jewish friends who is worse... Jewish or American?

This is only when I buy something. When I am selling something I avoid haggling like the plague. You couldn;t believe how easy it is NOT to haggle by shutting down the customer on the first try.

If someone asks me to match a price I *might* consider it. I ask them to see the proposal. The main rason I am asking is so I can tear it apart. I know very very very few, if any, proposals will be as details as mine; so I know I can find some detail missing. "Oh look no wonder their price is cheaper! They forgot X"

What you said about not giving an inflated price is what you should tell them. "Mr. Customer I know of some companies who inflate their price because they know customers are trained to ask for discounts on reflex. You ask for a discount they mark down the job, you are happy and they got the job.. but what they really did was lie to you. I don't play those games."

I said above I would consider haggling. If they show me the competitor's quote and everything is the same, and it's from a reputable company, then I have to ask myself how badly I want the job. Do I stick to my guns? More than likley I wills till stick to my guns. If it is a highly profitable job, and I am sure my measurements are accurate, and the job is in my main service area I might give them something.

I've walked from quite a few jobs when told by the customer I can have the job if I lower my price. Quite a few have hired me anyways. Some have not...b ut ya can't win em all.

Arizona

Hi Nathan,

I know all to well about the price haggle that goes on. I have learned that the more money they have, the more of a discount they demand, so if you mark up your pricing to compensate, then your competition gets you, or you undercut and you're out of business in 2 years.
Tell people you don't haggle, you are giving them the best price with a fair overhead and profit.
I hate bids that the minute I question them, they come down, leaving me to wonder why they did not give me the lowest price in the first place. Every time I have gone ahead and used them we run into problems down the road because of the loss of trust factor.
The MAIN thing you are selling is yourself. Humor, honesty and good references have gotten me alot farther than being a smarmy b***s***r. Not "rich", mind you, but busy and content.

KC

Don Benham

no, never.

Don

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Benham Flooring
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Look, I know the voices in my head aren't real, it's just that lately they've had some really good points.

Floorwizard

Barely ever.
Maybe on material only sales, sometimes. but I rarely get em.

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"in 20 years you will regret more what you did not do than what you did"

TimWieneke

We don't haggle. We just give them the option of changing the scope of the project.


"I have learned that the more money they have, the more of a discount they demand"

That is the truth! Of course, that is how they got more money in the first place....


Tim

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As Steve the Foreman would say, "Forgive him Lord, for he doesn't know what he's doing."

GPI

Haggle is not the term I would use, barter would be something I would go for. But it has to have value, services, property etc...

Grumpy

Bartering is when you exchange goods or services for other goods or services instead of in exchange for money. I am not quite sure the term barter applies to someone asking me to reduce my price, unless they are telling me:

"What if I give you $X dollars, which I am aware is less than your asking price; but then I give you this sack of potatoes valued at $Z to make up the difference?"

Honestly I would consider a barter. I know a guy who does full remodels. He was remodeling some rich guy's kitchen and the guy ended up giving him a down town condo in exchange for the work. The rich guy no longer used the condo and decided it was time to get rid of it.

DecksEtc

"Haggling" can be somewhat of a relative term. When I say that I mean, if I am quoting a job where for example the person initially asks for a straight deck only (no skirting, railing, benches etc.) and upon discussing the extras they say they might be interested in additional features, what I will do is offer them extras at a "reduced" price. Something along the lines of $1 less per foot for an upgraded railing, $1 less per sq. foot of skirting etc. I do all of this during the negotiation phase of providing the quote. I point out the higher quality of my work and my 5 year workmanship warranty as reasons for my pricing. Once my quote is delivered I do not go back on my price. Most people like to think they are getting a "deal" - don't we all? It would have to be an extreme circumstance for me to haggle after the point of the quote being given. If they're going to nickel and dime you from the beginning just wait until you start doing the work...

art

no i don't. i no what i need to do the job. i price the job to get it.

Grumpy

Interesting fact. I just hired a new sub for windows. He is $25 per window cheaper than my previous sub. Today I sold a BUNCH of window jobs by calling unsold bids and telling them I am running a one day sale and they can save $20 per window.

I'm gonna make $5 profit more per window than I would have previously and I sold a BUNCH of jobs. My new salesman is loving me today.

magnum

I rarely haggle, maybe 6 times in the last 11 yrs. Probable 4 in the first 5 yrs. When I meet the client for the first time I let them know that I will more than likly not be the lowest bid but insist that they get at least 3 bids and I am normaly in the middle. Like Grumpy my estimates are very detailed with labor and materials brake downs. 9 x's out of ten even if I don't get the job they usually are very impressed with my estimate. But I think planting the seed that you dont plan on being the lowest bid keeps them from haggling.

donb1959

I can always negotiate what I will, when I will do it, and how I will do it. But I can never negotiate on my price, cause it truly is the lowest possible price figureing in my overhead and profit.

I use an hourly base rate to figure my jobs, that rate includes overhead and profit, to cut the price would be to cut the profit. And I dont have a huge profit margin.

My qoutes are very detailed, right down to the brand of paint. I also keep a sheet in the truck detaling how I feel about low bids, and why mine probably will not be the lowest.

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http://www.shimmerz.biz

MasterStrokes

Priceless. I've never thought of it that way. As you can see I've haggled

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If nothing we do matters, then all that matters is what we do.

toddy

I Do Not Negotiate On My Craftmanship,so Why Should I Negotiate On Cost. You The Customer Are Paying For My Skill,experiance,and My Passion Of The Work That I Do.therefore If You If You Do Not Believe That My Prices Contain Everthing About What And Who I Am. Then Please Go To A Monkey Who Does Not Mind Getting Paid Peanuts.i Believe That I Am Worth Whatever I Say It Is Going To Cost For The Final Product.to The Builder/craftsman If You Haggle This States To The Customer That You/do Not Believe In Your Work,you Are Not Worth That Amount,

donb1959

I Remember Another Poster Doing This, And For The Life Of Me I Cant Understand Why, Seems Awfully Time Consuming.

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I fish therefore I am
http://www.shimmerz.biz

George Z

The only thing up for negotiating (not always after signing), is the
scope of work. If someone outside your business wants to tell you
what your numbers should be, walk away. Protect your margins.

George
www.ecopainting.ca

kurf

My thoughts exactly!
-will,