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#1 |
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Pro
Trade: Swimming Pool Contractor
Join Date: Oct 2006
Posts: 2,165
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I Lowballed A Confession
I confess I lowballed on thursday......
I sold 4 resurfacing jobs on 1 street thursday. I could have sold them for 800-1000 more. here's my reasoning... I have open & closed these pools for years.. they are as identical as pools can get... if something ever goes wrong in a pool they call me. I am subbing these jobs to guys I've worked with for years.... my combined profit on these jobs is 6k. I will continue to open & close, they use my line of chemicals... one afternoon I sold them all. I'm sure I could have put the $crew$ to these jobs.. an open & close pool is worth $750 a season for about 3hrs labor. plus chems sales... time spent writing & selling these jobs about 4 hrs, including face time.. ray
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......Less with the jaw & More with the paw..... |
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#2 |
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Pro
Trade: kitchen cabinet maker and installer
Join Date: Oct 2005
Location: near Swindon in England
Posts: 842
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Re: I Lowballed A Confession
Seems OK to me. Sometimes you can ask more money for a job but it just isn't right to do so for one reason or another
John
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#3 |
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Electrical Contractor
Trade: Electrical Contractor
Join Date: Mar 2004
Location: Newnan GA
Posts: 744
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Re: I Lowballed A Confession
I don't look at is as lowballing, more like a volume discount!
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#4 |
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Insert title
Trade: Doors-Windows-Decks
Join Date: Apr 2006
Location: MA&RI
Posts: 4,677
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Re: I Lowballed A Confession
So is "low-balling";
1- Pricing lower than "the going rate" 2- Pricing lower than the guy before you 3- Pricing lower than you normally price becuse you feel that your regular price is to high. Or a mix of the above?
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#5 |
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Pro
Trade: Swimming Pool Contractor
Join Date: Oct 2006
Posts: 2,165
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Re: I Lowballed A Confession
great ?s doug..
in this case #3 I'm looking at it as a good afternoon... I still have them as service accounts, and no I don't think I am buying the work.... plenty of money in price to cover top notch materials & crews. if there is an unforeseen variable I will be paid additionally & profit more
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......Less with the jaw & More with the paw..... |
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#6 |
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Insert title
Trade: Doors-Windows-Decks
Join Date: Apr 2006
Location: MA&RI
Posts: 4,677
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Re: I Lowballed A Confession
Poolman, my only problem with #3 is that I try to have the same price for everyone. Volume rates are cool so long as you honor them when the clients aunt calls and wants a neighborhood deal. Actually volume rates that produce more volume is a really good problem!
I have tried volume deals in condo's without any great success.
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To get the best replacement windows, or sun rooms contact the replacement windows experts at FHI Vinyl Window Company. |
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#7 | |
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Commercial Contractor
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Re: I Lowballed A Confession
90% of my business is "volume" so to speak. I work with the same group of builders/contractors/developers exclusivley. I get anywhere from 5-50 tenant fit outs at a time in commercial. And if one of my residential builders is doing a sub division I usually get them all.
However I do not give any "discounts'..my rates are all the same and get figured into my bid. However I do not do any type of home improvement or anything, so maybe it is different...however I have never or would never do it. Not saying what you did is wrong, like I said..in home improvement work, maybe it is a great thing to give discounts if your landing whole nieghborhoods.
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#8 |
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Pro
Trade: Swimming Pool Contractor
Join Date: Oct 2006
Posts: 2,165
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Re: I Lowballed A Confession
well it wasnt a neighbors discount....
i hate the word volume discount to me it means giving volumes of my money away.. i know am high & im still getting a going rate for the work,,,, and hit all for full wack on mechanical upgrades on seperate work order.. if stranger came in they would get what i sold for or less...
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