Line In The Sand

Meetre

So, let's just say you have given a prospective customer a price for a job. Details are worked out, they want what you are selling. BUT, they don't want to pay your price. where do you put the line?

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Aggie67

We usually tell them "What we can do is whittle down the scope of work, and give you some less expensive options in the materials."

90% of our clients are repeats, so I always give 2 or 3 alternative scopes (leaving out controls, different material, etc). It builds the basis for conversation, and we find that some people when given more choices than just "go" or "no go", they'll pick anything other than "no go", because they really want the project to happen.

When all else fails, you just have to say "Well, when you decide on what you want to do, give me a call." We'd rather walk away than buckle and come down in price. You do that once, and that's what people will expect.

Grumpyplumber

Look into what your profit is on the current bid, also consider the current market.

Are you currently getting steady business?

If so, consider what happens when you cut your rates, then calls come in for more work while your busy working at those rates.

Meetre

Oh, I know what I'm doing, saying no, over $150 price difference. We already changed materials twice to get this close to his price, and I won't loose money to have work, that includes making what I pay myself and my helper and overhead. I'm mostly wondering what others would do in this spot. Making sure I'm not unreasonable.

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Jason Whipple

Is it $150 difference on a $800 job or is it a $20,000 job?

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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Meetre

I say $1350, he wants it for $1200. I say no.

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Jason Whipple

I don't know how badly you need the work but me, I would say no. They are chiping away at you already. Are these the types of customers you want to work for? I'll bet they promised you all types of projects after this one is over, didn't they.

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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Meetre

Its for a friend of my future brother-in-law. So, I'm already leary of the job. Then, after I price the materials he stated he wanted, sticker shock, wants it cheaper. I change materials, still wants it cheaper. I called to tell him that I can't do it for that price today, had to leave a message, haven't heard back yet. Like I said, I already know I won't be doing the job, his pride won't let him pay more than $1200 cause that's his number. I'm just wanting to get some perspective from my bro's here, to make sure I'm not getting to stuborn.

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Jason Whipple

Don't you just love it when a customer gives you the price! I think I'll try that next time I go out to eat.

"I'd like the porter house steak, medium. Bye the way, I see it's $17.99 on the menu. I really want it but I can't pay you more than $14.99 for it."

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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Cole

They are pulling this stunt over $150? Leave them in the dust!

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Tulsa's Leader in Outdoor Living Construction | Facebook | Tulsa Pergola Builder | Tulsa Outdoor Kitchens

Meetre

well, he is a salesman, I should have expected it from the start. Oh well, better get started on the other project I got this week. thanks for the input guys

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Grumpyplumber

"His number"

Interesting how layman often think they know what costs and overhead are entailed.

"His" number is probably after getting 12 other bids and grabbing a figure thats below the lowest one.

I'd let it go if you have other work, 'specially where it's a "friend of a friend"...this will almost guaranteeably come back to haunt you anyway after the work is done.

Mellison

I am going to buck the current trend here.
I have never seen a problem with a customer asking if my prices are set in stone. It all depends on how busy I am at the time. I ask my self if I am willing to lose a $6,500.00 job over $500.00 or so? The key is not to look at it as loosing money but paying for advertising. If you do not do the job the customer will never see what you are made of as a contractor. That means no more work for him or her in the future and no references down the road.
That being said, it all depends on how the conversation takes place. if someone says this is what I think the job is worth, they can go screw.
If on the other hand the conversation is more like: Will you be willing to negotiate? I may feel a bit generous. As in life, a persons attitude can speak volumes.
Just my 2 cents.

Double-A

Do you really think that you can make up a 7% discount by working in volume? Do you honestly think that a job done for less money that you usually would charge will lead to more jobs from the same person that you can "recoup" your losses on?

Ego... they name is contractor.

What do you care if the customer gets to see "what you are made of as a contractor" when he's laughing all the way to the bank at your expense about what a bad business person you are? I mean, discount 7% just to prove a point?

What's next? Hand driving slot-headed brass screws in a deck just to show how old school you are?

I would never allow my ego to take my families future away from my control. And to me, that means I'm not going to discount a job 7% just on the off chance this person is going to give me more of the same.

Thanks, but no thanks. I'm really hard pressed to see the advantage here.

BTW 7% of gross sales on advertising seems quite low to me, depending on your line of work.

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

DavidC

GrumpyPlumber made a comment in another thread that sums it up pretty good. Something about reaping what you sow, cheaper work brings cheaper referrals.

To answer your question directly, I draw the line at the bottom line of my proposal. If they want less we sell less, but we do not discount the same work for less.

Good Luck
Dave

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www.CookContractingLLC.com

Mellison

It has nothing to do with my ego.
What I meant by Seeing what I am made of simply means that after working with them they will be hard pressed to look for another contractor down the road and will refer me to friends, coworkers etc. Trust that I am speaking from experience here. All of the work I get is in apartment buildings with many owners. I have been known to stay on one block for many months, going from a kitchen remodel to a bath remodel to another job from references alone.
Now as far as the money is concerned. I will be the first to admit that I am by no means inexpensive. Therefore my quotes leave room for for negotiating.
If my original quote for a job that is to take about three to four days is $6,000.00 is it crazy for me to say to myself on Monday, that I will have $5,500.00 more in my corporate account by Thursday if I only negotiate a little? And at the same time make a customer happy that will hopefully use me again and refer me.
Also, Keep in mind that with a crew I can have three to four jobs going at once. One guy taken off one job for a few days in order for me to bank a few thousand dollars is well worth the haggle. Finaly, I will never price a job that 7% is going to make a huge difference. Like I said I have been told I am expensive.

AskForTheSale

Tell him after running the numbers again, you determined you can give it to him for 1050, and you will, here's the key, let him know when you can get to it being you are so busy.

You don't ever get to it.

That is how you play hardball with idiots who do not respect you.

Mike Finley

Oh Boy. Do you know somebody with the initials R.B.? He'd be all over you giving you high fives and thumbs up.

Mike Finley

If that's the case you obviously have 10 weeks of work as a back log right?

If you keep this work backlog there is a limit to how much you can back log, why would you be interested in backlogging work that is 10-15% less profitable? If you simply say no to them, then you have room to backlog another job that is more profitable.

You see where I am going?

rbsremodeling

That is cold!!!!!!!!!!!!! Maybe you can consult him on the right thing to do

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