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Job Was Easier Than Expected. Customer Asking For A Reduction In Price?

 
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Old 11-04-2014, 06:14 PM   #81
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


This a big PR opportunity for you. You want people that think you walk on water because they will tell EVERYONE about you. This is your chance. Tell them that when you run over you absorb the cost. Let them know that normal business would be to bill since it was a fixed cost bid. Then let them know that the customer is the most important thing in your life and that you do everything to provide the best service at the best price you can. Give them the discount and make sure they are ecstatic about it. You will get back what you lost many times over. In fact, you could even ask them to promote you to friends in exchange for the discount...if done right.

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Old 11-04-2014, 06:21 PM   #82
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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Originally Posted by mastersroofing View Post
This a big PR opportunity for you. You want people that think you walk on water because they will tell EVERYONE about you. This is your chance. Tell them that when you run over you absorb the cost. Let them know that normal business would be to bill since it was a fixed cost bid. Then let them know that the customer is the most important thing in your life and that you do everything to provide the best service at the best price you can. Give them the discount and make sure they are ecstatic about it. You will get back what you lost many times over. In fact, you could even ask them to promote you to friends in exchange for the discount...if done right.

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And then they tell all their friends that you will cut your price at the drop of a hat.

No discounts for referrals.If you do great work no need to offer an incentive.
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Old 11-04-2014, 07:37 PM   #83
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


[QUOTE=TNTSERVICES;2124483]And then they tell all their friends that you will cut your price at the drop of a hat.
/QUOTE]

Disagree. Done right they will tell everyone how honest and competent you are, not have stupid you are. Anyone back me up on this?
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Old 11-05-2014, 01:05 AM   #84
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


No they'll tell everyone how much of a push over you are.

Look, they came to him asking for money back. If he gives it to them, they aren't going to think he's honest, just guilty. Then they'll tell there friends whatever they want. Probably something along the lines of how this contractor thought he was going to get away with overcharging then and that the only reason they got their money back was because they put him in his place.

Good WOM is going to come from giving them value, not a few hundred bucks after they asked for it. Sell a solid repair for a fair price and you will never go hungry.
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Old 11-05-2014, 09:22 PM   #85
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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Ethically? Are you kidding? It's called win some lose some. Why do contractors feel guilty winning one?
It's one thing for a job to take less time than estimated. It's totally Unethical to charge for work that you don't perform. That's how I interpreted the OP.
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Old 11-05-2014, 10:11 PM   #86
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


I have not read this whole thread....

No discount, What do you do if the client says "well go ahead and replace all the floor you described in the SOW then"...
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Old 11-05-2014, 10:26 PM   #87
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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It's one thing for a job to take less time than estimated. It's totally Unethical to charge for work that you don't perform. That's how I interpreted the OP.
Right, but there is no distinction between ethically and legally. You are describing both at the same time as something different.

If my contract says replace floor, and I did so, there is no legal or ethical violation if I did it for less than I expected.

If I said I would replace 12 sheets, and did not do so, there is both an ethical and legal violation.

You said Ethically give them back their money and then said legally it depends on what the contract says. In what situation would you be ethically liable but not legally?
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Old 11-05-2014, 10:52 PM   #88
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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Originally Posted by TNTSERVICES
Right, but there is no distinction between ethically and legally. You are describing both at the same time as something different. If my contract says replace floor, and I did so, there is no legal or ethical violation if I did it for less than I expected. If I said I would replace 12 sheets, and did not do so, there is both an ethical and legal violation. You said Ethically give them back their money and then said legally it depends on what the contract says. In what situation would you be ethically liable but not legally?
In the situation that started this thread. It seems the OP gave his customer too much information. They know that he doesn't need to buy the materials or do the work to replace as much as he initially thought. I believe they agreed to pay a price to complete the job but now that the project is underway they are unfortunately (for the contractor) aware of the fact that this initial quoted number, if paid in full, will compensate the contractor for work he didn't perform.
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Old 11-06-2014, 12:01 AM   #89
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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In the situation that started this thread. It seems the OP gave his customer too much information. They know that he doesn't need to buy the materials or do the work to replace as much as he initially thought. I believe they agreed to pay a price to complete the job but now that the project is underway they are unfortunately (for the contractor) aware of the fact that this initial quoted number, if paid in full, will compensate the contractor for work he didn't perform.
So how is that ethical and or legally a violation?


So you are saying they paid him to do a job, he did it. They know the details and expected more under the scope of work, work that he didn't complete?

Are you saying their expectations dictate an ethical dilemma and not a legal one. Your last sentence would seem to say that it is also a legal one. "for work he didn't preform".

If he said something to the customer about further details of the scope of work he had added to the contract with details. He is most likely legally obligated to complete the work as described or it would be fraud. So again it is both legal and ethical.
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You ask for your money frequently, and you collect it quickly, else you stop working immediately.
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Old 11-06-2014, 12:42 AM   #90
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


So, would the customer be within his rights to insist on replacing everything?
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Old 11-06-2014, 12:45 AM   #91
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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So, would the customer be within his rights to insist on replacing everything?
Yes, if it was covered in the SOW.
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Old 11-06-2014, 01:01 AM   #92
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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Disagree. Done right they will tell everyone how honest and competent you are, not have stupid you are. Anyone back me up on this?
I wish I could back you up but Rob is right for most people. It's not just scumbags that think like this. It seems like every time someone tells me they "saved money" or got a discount they relay the story like they either wore the other person down through their masterful negotiating or the other person was ripping them off so they "made" them give up a discount. Either way, you don't want to be the other guy in that story.

The other thing I have noticed is that if you give someone a dollar off a cup of coffee they're over the moon but if you give them $200 off a $10k project you just insulted them with such a low discount.
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Old 11-06-2014, 07:01 AM   #93
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


I agree with what Rob and others have said. I don't want to have the word of mouth that goes out after one of my jobs to be focused in any way, shape, or form on giving money back, getting a good deal, or a cheap price. That talk brings them out of the woodwork.

To those who have cited giving discounts as a case for more referral work. I disagree with the idea there also. More than likely those people aren't charging enough and the sense of a long list of referrals from offering discounts is merely a long list of good customers who are more than willing to capitalize on a contractors lack of financial skills. After all, who doesn't want great work done for a great price.
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Old 11-06-2014, 08:09 AM   #94
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


In another thread many people said that in their contracts it lists a very detailed SOW down to the fasteners use in each stage of a project. I guess I just don't understand that if you don't perform all the steps in the scope then how do you charge the full price. I don't understand that.

Now if the scope of work states "fix subfloor" then when the subfloor is fixed then all money is due to you. That's just my opinion on the matter.
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Old 11-06-2014, 09:09 AM   #95
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


Most important is what contract states- if scope details replacing 1/2" and you don't, then some refund is in order.

It's really a simple change order- if you open a wall and discover extra work that you didn't anticipate, you write a change order.

If you pull up a floor and find you don't need to replace something you thought you would, you write a change order- again based on the wording of the contract.
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Old 11-06-2014, 10:18 AM   #96
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


If the Scope of Work needs to be modified then there should be a Change Order. It can be a zero sum, a credit or an additional charge but you can't just change a SOW willy-nilly. I issue credits or additional charges fairly regularly as something is added or omitted. It shouldn't be a big deal. You figure out what the labor and materials cost would be and credit them that amount. Unless it's a big reduction in the scope, I generally won't credit them for O&P as I still have some costs associated with figuring out and preparing for the work.

I just had this come up in a contract submission yesterday. I have three Allowances in the contract and the HO wanted to know if they got a credit if the cost came in under the Allowance. The answer was, of course, "yes".
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Old 11-07-2014, 12:20 AM   #97
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


Things are getting a little fuzzy from the original post. I need to go back and read it again.
If as the customer, you say that you will be replacing 10 sheets of plywood as well as 10 sheets of underlay, and you don't, I want a cost reduction or a really good explanation.
F the win some and lose some idea.
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Old 11-07-2014, 12:27 AM   #98
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


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Things are getting a little fuzzy from the original post. I need to go back and read it again.
If as the customer, you say that you will be replacing 10 sheets of plywood as well as 10 sheets of underlay, and you don't, I want a cost reduction or a really good explanation.
F the win some and lose some idea.
You are mudding the waters. No one ever said win some lose some on a specified scope of work that listed exact quantities of material to be replaced.

I think you should have stopped at needing to go back and read the thread.
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Old 11-07-2014, 12:33 AM   #99
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Re: Job Was Easier Than Expected. Customer Asking For A Reduction In Price?


Pretty tough to say what the person should do, since the contract or even the SOW isn't disclosed by the OP. It's all speculation on how it's written and what's in it.
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Old 11-07-2014, 12:37 AM   #100
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Pretty tough to say what the person should do, since the contract or even the SOW isn't disclosed by the OP. It's all speculation on how it's written and what's in it.
It's more of a conversation starter than anything.

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