I Lowballed A Confession

 
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Old 04-07-2007, 10:50 AM   #1
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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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Old 04-07-2007, 01:34 PM   #2
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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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Old 04-07-2007, 01:40 PM   #3
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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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Old 04-07-2007, 01:52 PM   #4
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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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Old 04-07-2007, 02:04 PM   #5
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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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Old 04-07-2007, 02:20 PM   #6
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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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Old 04-07-2007, 06:58 PM   #7
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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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Old 04-07-2007, 07:05 PM   #8
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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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