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How To Handle "It Cost Too Much"

 
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Old 03-11-2012, 01:27 PM   #21
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Re: How To Handle "It Cost Too Much"


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Originally Posted by BamBamm5144 View Post
I like the ones that I bolded but the one I underlined sounds like more of an insult.

The insult is the clueless homeowner telling you it costs too much. I usually ask them, "how much should it cost?"
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Old 03-11-2012, 01:33 PM   #22
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Re: How To Handle "It Cost Too Much"


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All kidding aside, I usually resort to something like..."maybe we should be looking at some less expensive options. Hardware, molding, etc, etc all come in less expensive options".
That's always allowed me to retain my price stance and put the pressure on them to lessen their needs. They usually want to stick with the higher grade "whatever".

The last customer who told me that "it's too high" is a doctor. He said that he could get it done for half because he's been to Home Depot and knows what things cost. This was a total gut job on a 1500 sq ft apartment. Let him try to get HD to do it. This was last week and he needs it done by May 15th 2012.
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Old 03-11-2012, 01:48 PM   #23
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Re: How To Handle "It Cost Too Much"


Just saying, anybody who claims their quality is above the rest, is raising a red flag. Most people are aware that just because something cost more money, it does not insure that the quality of the product is better.

Bottom line give a fair price that you feel comfortable with, be on top of your costs. If they still think it's too much, move on. Don't want to take on a job in which you think the customer is a chore.
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Old 03-11-2012, 01:50 PM   #24
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Re: How To Handle "It Cost Too Much"


There are always going to be customers who, to quote my wife, are "playing house". It's just the nature of the business
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Old 03-11-2012, 05:23 PM   #25
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Re: How To Handle "It Cost Too Much"


"It costs too much" I hear that from people trying to compare my prices to that of which they found on the internet. Of course the internet price usually doesn't include shipping, removal of the old unit, lugging the new one into the backyard, hooking it up to gas, plumbing, and electrical. Then hauling the old one away.

I had a guy buy a pool heater off the internet once and when he called me to install it and I went to look at the job, the heater he bought just fit in the space available with no room to spare. He never measured it to see how it would fit. So included in my price is my knowledge about the products that will work for them.
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Old 03-11-2012, 05:30 PM   #26
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Re: How To Handle "It Cost Too Much"


I must not be a very good salesman.

When I hear "It costs too much!", my reply is usually, "Thanks for your time. Have a nice day"

Once you have established your level of expertise, hearing that is an insult and should be treated as such.
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Old 03-11-2012, 05:38 PM   #27
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Re: How To Handle "It Cost Too Much"


Oh and I don't back off my price either when I hear that. My price is my price. Just like HD and Lowes, they have their prices and that is that. So why do people think just because you are not HD or Lowes that they can negotiate a price. Oh yeah that's right, because of the hacks out there that don't run a honest business and they low ball for beer and crack money.

My wife says I need to be flexible. I told her "I'll ask the mortgage, cable, and electric companies if they can be flexible the next time I go to pay the bill."
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Old 03-11-2012, 06:19 PM   #28
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Re: How To Handle "It Cost Too Much"


Everything is negotiable, before the contract is signed, or the deal is made. The goal is to try to come up with an agreement in which both parties win. Too many posts in which there seems to be an adversarial environment between the prospect and the entrapeneur (no spell check).

If the prospect thinks the cost is too much, at least make an effort to figure out what can be done to make a deal. Sometimes, it isn't possible, but those who refuse to budge are likely to go hungry. Truth of the matter is supply far exceeds the demand for our work.
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Old 03-11-2012, 06:42 PM   #29
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Re: How To Handle "It Cost Too Much"


Customers usually think if you cut $250 - $300 off it's a good deal for them. I really can't cut my prices like that.

How can you negotiate with say a HD or a Lowes? Unless the box is damaged or it's missing something you can't. If you can, someone please inform me so I can start getting better prices when I shop there.
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Old 03-11-2012, 07:21 PM   #30
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by flashheatingand View Post
Just saying, anybody who claims their quality is above the rest, is raising a red flag. Most people are aware that just because something cost more money, it does not insure that the quality of the product is better.

Bottom line give a fair price that you feel comfortable with, be on top of your costs. If they still think it's too much, move on. Don't want to take on a job in which you think the customer is a chore.
I think I'm missing what your saying. Are you saying everyone should be the same price? Or that you shouldn't justify your cost, if its higher than others?
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Old 03-11-2012, 07:23 PM   #31
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Re: How To Handle "It Cost Too Much"


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Originally Posted by jawtrs

I think I'm missing what your saying. Are you saying everyone should be the same price? Or that you shouldn't justify your cost, if its higher than others?
I think he's saying that just because you're more expensive, it doesn't mean you're better than the guy who is cheaper.
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Old 03-11-2012, 07:32 PM   #32
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Re: How To Handle "It Cost Too Much"


Contractor #1 has new $60,000 truck with $600 a month payment, plus insurance etc. Ads this extra overhead into his markup.

Contractor #2 has old $1,500 truck with no payments. Nothing extra to ad into overhead, thus has a lower markup.

Installs same item, once the contractor leaves, do you think the client cares more about what truck you were driving or what you did when you were in their home. Point is, if the client says your price is too high, maybe your truck is too nice...
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Old 03-11-2012, 07:33 PM   #33
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Re: How To Handle "It Cost Too Much"


If I give an estimate and someone finds it too high, that's fine-they can go somewhere else.

If someone expects me to lower my price, I can work with them to lower material costs somewhat- hollow core doors instead of solid, PT instead of cedar, etc.

However the labour cost is what it is, I don't "negotiate" or give different prices to people based on their wealth or the neighbourhood they live in. On a couple occaisons where people attempt to bargain, I politely explain that the price I give is my estimated labour cost to do the job...change the job and I can change my price.

Either people accept this and trust me and I get the job, or they choose to shop around for someone cheaper. That's fine, I really don't give it a second thought, and move onto the next person who is willing to do business.

I think it's important to establish whether this persons budget/expectations are realistic for what your costs are, before spending a lot of time and effort going over things and preparing quotes.
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Old 03-11-2012, 07:39 PM   #34
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by rollerroman
Contractor #1 has new $60,000 truck with $600 a month payment, plus insurance etc. Ads this extra overhead into his markup.

Contractor #2 has old $1,500 truck with no payments. Nothing extra to ad into overhead, thus has a lower markup.

Installs same item, once the contractor leaves, do you think the client cares more about what truck you were driving or what you did when you were in their home. Point is, if the client says your price is too high, maybe your truck is too nice...
So we should all drive pos trucks and lower our price..give me a break.
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Old 03-11-2012, 07:43 PM   #35
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by rollerroman View Post
Contractor #1 has new $60,000 truck with $600 a month payment, plus insurance etc. Ads this extra overhead into his markup.

Contractor #2 has old $1,500 truck with no payments. Nothing extra to ad into overhead, thus has a lower markup.

Installs same item, once the contractor leaves, do you think the client cares more about what truck you were driving or what you did when you were in their home. Point is, if the client says your price is too high, maybe your truck is too nice...
I think a more accurate version of this is that the materials are more likely to be close in cost, and its the cost of business between the two and how each values their labor (one may be happy making $35K, another wants $70K - automatically makes it more expensive).

The reverse of this is also true... just because it is cheaper doesn't necessarily make it a good deal either... all things being equal, one more likely places more value in their expertise than the other...
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Old 03-11-2012, 07:54 PM   #36
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by rollerroman
Point is, if the client says your price is too high, maybe your truck is too nice...
I have a very nice truck, that I have worked hard to pay for. And if I am more in my quote I don't care. I am in this to make money not to do favors for people I am not friends with...

If they want it cheaper go to walmart. Lol

ps: I have all my guys wear uniforms and will not hire a guy that looks bad also will not have a sub on site that looks like a bum. I have a image to keep. And my customers love it.
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Old 03-11-2012, 08:00 PM   #37
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Re: How To Handle "It Cost Too Much"


I don't think the price of a vehicle matters. I see guys with all different types of vehicles working everyday. The difference is how well the vehicle is maintained. My van cost 2k. It is in great shape and professionally lettered. No one would know different. My truck was 18k. It is very well maintained and professionally lettered. Now, if my 18k truck was beat to crap, I could see people being turned off by that.

Anyway, as I have recently found out prices are all over the place. Now, I know I am cheaper than a lot of my actual competitors. That is because my competitors have large fleets, large showrooms with large overhead, etc.

The other day I was driving with my salesman while he got a call. He was in a bit of an irritated mood that day. The guy on the other end called to let him know he went with another contractor because the price difference was a "substantial savings" (I could hear because of how loud the volume was). My sales guy instantly responded with "Just because the other company is cheaper, it doesn't mean you saved. Thank you for letting us bid your project." That was all he said and hung up.

I told him that was a little unnecessary but it got me thinking about how I view guys cheaper than me so how do guys who are more expensive view me?
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Old 03-11-2012, 11:28 PM   #38
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by jawtrs View Post
I think I'm missing what your saying. Are you saying everyone should be the same price? Or that you shouldn't justify your cost, if its higher than others?
Of course we shouldn't all work for the same amount we should be able to charge whatever we see fit. Yes, you should justify you cost if you are higher. It adds credibility. If you are using "better" materials, fine. If you are explaining how you are licensed & insured, great. But the quality workmanship card is a poor play.
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Old 03-11-2012, 11:53 PM   #39
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Re: How To Handle "It Cost Too Much"


Quote:
Originally Posted by flashheatingand
But the quality workmanship card is a poor play.
Why???? quality takes time. I can install trim fast and save the customers money but it looks like crap. I had one guy want me to install a door and trim both sides in 10min. Thats how long he said it took him. So i did all the doors in a 10min. each time frame... Lol showed him. Then he said they looked bad. They worked and where trimmed out.. That's what he wanted.. Ps I made him do one. It took him two hours and he installed it three times and i still had to fix it. Lol also the painter was pissed off. It took him extra time and cost.

This is just my opinion but! I have seen lots of "carpenters" come to bids with unwashed sweats and old tshirts and crap trucks. I have also seen there work. I say if you think its ok to look like that what do you think there work on my customers home will be like. I think the man shows his work in how he looks. That being said I have had some guy look the part but there work was crap..

Customers need more education thats the bottom line... We need to show them. I had one lady not want to pay. So i sat down with her and showed her my expenses for the day ie insurance overhead etc... She was sorry when she seen the costs, and was then asking why i did not charge more. I said i could redo the bill. Lol she said its ok..lol
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Old 03-12-2012, 12:50 AM   #40
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Re: How To Handle "It Cost Too Much"


I think the different in quality is DEFINITELY a good reason for charging more. Quality as well as an assurance that you are a professional who knows how to do a proper job, and will stand behind your work.

Everytime i've seen some botched job where someone had absolutely no idea what they were doing, it has always been a case of the home owner price shopping for a best deal.

People who want good value, and just want a good job done on their property, are willing to pay what it's worth.

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