Thoughts on pricing. - Contractor Talk - Professional Construction and Remodeling Forum

Betterblast · 10-01-2009, 09:33 PM

Does this sound familiar? Customer calls and desribes a project and asks what you will charge strait away. You fumble in your head for a bit give a price of some kind . They may say somthing like "ok sounds good I'll get back to you "or, I've heard a couple tmes "Well I have to get it apart yet so I won't be ready for a few weeks". And you never hear from them again.

When I have thought about "how to price" I have focused mostly on how much money to charge. I now believe that is an incorect approach to the problem of scoring a job. Let's face it., any price you give them is highr than they wanted to hear. The trouble is they are embarrised to just tell you and negociate a little so they come up with delay excuses and they vanish.

Here then is what I think is a better approach. We need to take over control of the call. After they explain what it is that they need blasted and invariably ask for the price right off the top of your head, stop. Take a breath. Ask them this instead. So tell me, where are you at with your project right now? And before they answer... If we can agree on a cost can I schedual you in this week? This will disarm there ability to use a delay tactic. Get them to focus on the work not the cost. After all they knew it would cost somthing when they called you and you know if they will talk to you with honesty there is no reason you can't come up with the right price. If the answer is not yes, even with the presumption put in to place that you WILL agree to a price they will be ok with ,then they are truley just a tire kicker and waisting your time. I say do not offer any price at all untill they say " ok we can do it this Friday" or whenever. You now actually have the job instead of just a fake promis to get back in touch with you. Then of course it's up to you to know what a reasonable starting cost is and throw it at them as what you usually like to get for "this kind of job" How does that sound to you? What sort of cost were you hoping for when you called?

It isn't fool proof but it may serve to put us in more control of the situation. I welcome other points of view and tacticts, but please, try not to ramble on and on.

painter213 · 10-02-2009, 04:19 AM

Never price a job over the phone. You set yourself up to be taken. When I was in Buisness, I always looked at the job first or I received a set of prints to do a take off on footage. Pricing over the phone is just not good Buisness practice.

KramerInd · 10-02-2009, 07:42 AM

Pre-qualification at every step in the process is the key. I attended a seminar a few years back called High Probability Selling. A lot (but not all) of the stuff this guy talks about in his book is good selling technique. We have incorporated elements into our sales process. I think his technique is most applicable to a boiler room, cold calling sales approach.
highprobsell.com -- Use at your own risk!

wesschaff · 10-02-2009, 08:34 PM

I got a call yesterday "I have 3 radiators how much to blast them and paint silver"I answer how big "1 small 2 larger"I say $425 bring them by"OK"They appear and I blast and paint them in 70 minutes Oyeah the paint cost $17 bucks and the grit was off the floor.Another day as a small time operator.You guys can do it too.

Betterblast · 10-02-2009, 09:24 PM

That was a cool day for you Wess and we all have them from time to time. Not all customers are quite that eay to deal with and you have to prepare for both.

rlaird · 10-03-2009, 06:09 PM

I think its a coin toss,I'll price piece work like car rims, bbq grills, stuff like that over the phone, there is always a chance they are gonna shop you. Big jobs I am trying to think a few days on it before pricing, I like the term "ballpark" when cornered for a price.

Betterblast · 10-03-2009, 08:09 PM

I just told a guy 10 bucks each plus media at cost for rims. He still asked if there could be a discount if he gave me five. Dude, I said 10 bucks. What the heck kind of discount could there be? How about I blast them free and just give you ten bucks for the privilage.

rlaird · 10-03-2009, 09:11 PM

I cant stand people who want you to work for free.
I have told people that I'm not having a contest to see if I can be the cheapest, I usually hit wheels for 25.00 each.
We pay too many taxes and insurance to give anything away, not to mention I work my guts out.

Dyer · 10-04-2009, 06:13 AM

I get emails and calls like this, "I have a 27' boat, how much to blast the bottom?"

I always have to ask is it what the type of boat is, sail boat, power boat ect....

We beat around the bush for a while...

They always say, “Oh the paint is falling off in places... bla bla bla”

At the end of the phone call I tell them that I can’t give a price over the phone without seeing the boat first, if they really insist I tell them a generic price that I know that's to high (and I tell them that too!)

Then I tell them that it's not a fixed price till I can look at the boat and give them a more sound price.

If they don't croak from the generic price, then they will have you look at it.

Had one guy hang up on me when I told him a generic price, win some / loose some!

blastserv · 10-04-2009, 08:08 AM

i definately beat around the bush about pricing over the phone and really try and dig out a mental picture over the phone but always tell them i can see there project through the phone just like i wouldnt call them and ask them how much to mow my yard over the phone...

kell490 · 10-04-2009, 10:58 AM

I like to come out and see the job then I can talk to them for awhile get to know them build a relationship that way they are not so quick to find someone else and we can talk about price more.

blastserv · 10-04-2009, 05:39 PM

Quote:

Originally Posted by kell490

I like to come out and see the job then I can talk to them for awhile get to know them build a relationship that way they are not so quick to find someone else and we can talk about price more.

i agree this is best but it depends on the size of the job...usually the himmer and hawers are pricin g dumb projects around $50-300 dollar jobs...most if not all of the jobs that cant be brought to me i go look at just because it is most likely gonna be over $500 if i am going to a mobile job.

Osito · 10-04-2009, 07:38 PM

If I don't see I don't price it. Too many loop holes. If they are for real than they will understand. All to often phone pricing is to low for the work that needs to be proformed. People like that always think it is not a big deal. If they understood how to do it they would do it themselves.