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Telling A Customer You Under Charged

 
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Old 01-27-2015, 10:45 AM   #41
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Re: Telling A Customer You Under Charged


if i screw up a bid and dont price it high enough i take the hit.. on the contractry though i have done a few jobs where i price it high allowing for some predicted glitches but things go super smooth so i make a huge profit.. in those cases i do give a rebate,

my gc wont give a rebate per say but he will notify the client that things are coming in under budget and that money can be allotted towards upgraded finishes
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Old 01-31-2015, 09:51 AM   #42
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Re: Telling A Customer You Under Charged


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Originally Posted by rselectric1 View Post
I almost always notice a few things that they need and offer to do them free of charge and feel great to do it for them.
it's amazing what tightening up a door knob or putting a 3" screw into the door jamb does for a client (for free), but do believe it leaves a sweet taste in their mouth.

Curious, if you're running jobs w/ subs, are they much, much less likely to do some of these little things?
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Old 02-02-2015, 04:57 PM   #43
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Re: Telling A Customer You Under Charged


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Originally Posted by Alan M View Post
hi there.

I have been reading loads of threads on here .
this got me wondering

TOTALLY HYPATHETICAL

if you do a job and come in under what you thought it would cost you can give a reduction (if you want )

if you miss something in the estimate and it costs you more you screwed up , its your fault, you soak up the cost

do you tell the customer
if you do they might think your asking for the money or they might think you are honest for not jacking up the price

what do you think
Usually, clients have ideas on the market price. So, as long as you are within a market range, that is fair. Just be realistic.
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Old 02-02-2015, 06:01 PM   #44
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Re: Telling A Customer You Under Charged


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Originally Posted by 72chevy4x4 View Post
it's amazing what tightening up a door knob or putting a 3" screw into the door jamb does for a client (for free), but do believe it leaves a sweet taste in their mouth.

Curious, if you're running jobs w/ subs, are they much, much less likely to do some of these little things?
Usually it's something that I notice, that they've lived with for so long they don't even think about anymore.

Examples of very small things: Loose locksets or allen set screw tighten, replacing a switch that needs to be pushed up really hard to stay on, cabinet door adjustment, oiling a ridiculously squeaky hinge, adjusting a door so it closes, etc.

Other small things include buying a $5 toilet flapper and spending 2 minutes putting it in, replacing a doorbell button that hasn't worked for years, and the like.

Depending on the scale of the project, and if they are not hinting that I should "throw it in while I'm there for free" and are great to work with, I have voluntarily done things in excess of 2-3 hundred dollars.

It all depends on the customer.
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Old 02-02-2015, 06:28 PM   #45
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Re: Telling A Customer You Under Charged


As far as this 'charging more' concept....

is there a statute of limitations on this?

'cause I would like go back quite a few years, like say 25-30. I am sure I left some money on the table and wonder if it would be out of the question to try and get some of it?
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Old 02-03-2015, 06:17 PM   #46
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Re: Telling A Customer You Under Charged


Most of our clients have been and hopefully will continue to be repeat customers.

If I put extra money in the budget for something I thought would be required and it wasn't, I'll give the Owner a partial refund on that item. If I look the time to find a way to so something faster, better and cheaper and it saved money, it's mine.

If I miss something, that's on my dime. However i think I have a good relationship with our clients and think I could ask for more money for something I missed as long as I had a good reason to explain other than I'm an idiot.

It really depends on the relationship but if it was with a homeowner where I missed something, I think I would tell them but I would wait until the job was complete and paid for.
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Old 02-05-2015, 02:22 AM   #47
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Re: Telling A Customer You Under Charged


I might get shot down on here for this, but I do sometimes ask for more.

Also if I under bid and then there are extras I try hike the extras up as best I can to cover for the low bid.

I admit it's not great, but that's what I've done over the years.

Myself I just find it a pain in the azz part of contracting is giving a fixed price in a competitive bidding environment for something so random as renovating.

I know lots of landscapers that don't give a fixed price, mechanics and other trades that work by the hour, sort of vexes me that I have to give a fixed price at times.
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Old 02-05-2015, 08:32 AM   #48
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Re: Telling A Customer You Under Charged


I will live and die by the motto, my word is my bond. In the end I really have no better way to define my chatacter but by the strength of my word.

With that said all change orders are bid fair and accordingly. I don't try and cover my backend by bloating a change order. It is hard competing in the renovation world but it's the one I chose. If I under bid and then rely on COs to make it up I am a low balling turd who continues to perpetuate the stereotypical contractor who jacks the price up after I have the customer over a barrel.

And let's face it 99% of the time I'm not losing money in the job just not making the profit I wanted due to my error in bidding. Someone should never have to pay for my mistake.
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Old 02-05-2015, 09:32 AM   #49
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Re: Telling A Customer You Under Charged


I think that substantially bloating a CO is a really good way to get known as a scam artist. The three biggest fears that my customers usually have when hiring a contractor are:
-Will they finish the job
-Will they finish the job on time
-Will they find ways to charge more than the bid
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Old 02-06-2015, 11:45 PM   #50
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Re: Telling A Customer You Under Charged


Live or die by it?
You take work too seriously.
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Old 02-07-2015, 02:41 AM   #51
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Re: Telling A Customer You Under Charged


I absolutely take work very seriously, I have a lot of people relying on me. It's important I get it right.
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Old 02-07-2015, 08:39 AM   #52
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Re: Telling A Customer You Under Charged


If you're giving fair prices on a fixed contract, half the time you're going to come in under and half the time you're going to come in over. The HO is willing to pay the agreed amount for the results, you're willing to do what it takes to get it done. Get it done and take your pay.

I've seen guys try to do all kinds of things with COs. One guy tried to CO to go from an edge banded birch plywood closet system to a wire shelf 6' Closet Maid closet system and charge more, presenting it as an upsell. HO wouldn't bite on that.

I've done some work over the years with no COs - same way I'd do a complicated flip. I figure out what the budget would be to cover anything and everything found, and that's what it costs. I don't relax my standards on one of those just because there is stuff I couldn't see when I agreed to a price and I'm getting hosed.
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Old 02-07-2015, 08:52 AM   #53
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Re: Telling A Customer You Under Charged


Quote:
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Live or die by it?
You take work too seriously.
You don't take your word serious enough.
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Old 02-07-2015, 12:24 PM   #54
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Re: Telling A Customer You Under Charged


You have to think that to some people we are solving problems or fixing up something in their largest purchase they will ever make. You have to take that serious. People rely on you and your work to not cause them larger problems down the road.

That said I haven't told a client I undercharged on a fixed bid. If its a T&M thing and I am going over my estimate then there are discussions as to why and what is the reason for going over.

As far as loading up change orders, I think that is a chitty way to make extra money. I charge the same fair rate as always whether its a change or not.
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Old 02-09-2015, 03:32 PM   #55
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Re: Telling A Customer You Under Charged


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Originally Posted by Californiadecks View Post
I absolutely take work very seriously, I have a lot of people relying on me. It's important I get it right.
I take my work seriously, however I try not to live or die by it.
And I accept that I won't be getting any medals for it.

I have a friend that could probably relate to the idea of 'live or die by it' and to be honest, he's a bit of an uptight dude who gets frustrated at all the small things in life.

Come to think of it, I once did a job for a guy that was a bit of a live or die kinda guy, and without a word of a lie, he ended up putting a chip in the bathtub and cried! No ****!

Last edited by needs glasses; 02-09-2015 at 03:39 PM.
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Old 02-09-2015, 04:09 PM   #56
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Re: Telling A Customer You Under Charged


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Originally Posted by needs glasses View Post
I take my work seriously, however I try not to live or die by it.
And I accept that I won't be getting any medals for it.

I have a friend that could probably relate to the idea of 'live or die by it' and to be honest, he's a bit of an uptight dude who gets frustrated at all the small things in life.

Come to think of it, I once did a job for a guy that was a bit of a live or die kinda guy, and without a word of a lie, he ended up putting a chip in the bathtub and cried! No ****!
Why do people get things so screwed up in the there head from their eyes to their brain to comprehension.

What I said was this:

I will live and die by the motto, my word is my bond. In the end I really have no better way to define my character but by the strength of my word.

It says nothing about obsessing over work or sweating the small stuff.

When we are stripped of everything that we think matters we only have what we do and say to define our character. So I chose to be the kind of guy who's word means something. If that's not how you operate, that's fine, just don't bag on my thinking that integrity actually still means something.
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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 02-09-2015, 08:28 PM   #57
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Re: Telling A Customer You Under Charged


If your bid comes in over what you expected, do you tell the customer you over priced the job?
I your bid comes in under what you expected, do you tell the customer you didn't know what you were doing...?

If the customer makes changes, that's a different deal...

It's up to you, as a pro, to cover yourself up front/in the beginning.

Some lessons can be very expensive.

It's your business, so pay great attention when it's needed.
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Old 02-16-2015, 06:11 PM   #58
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Re: Telling A Customer You Under Charged


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Why do people get things so screwed up in the there head from their eyes to their brain to comprehension.

What I said was this:

I will live and die by the motto, my word is my bond. In the end I really have no better way to define my character but by the strength of my word.

It says nothing about obsessing over work or sweating the small stuff.

When we are stripped of everything that we think matters we only have what we do and say to define our character. So I chose to be the kind of guy who's word means something. If that's not how you operate, that's fine, just don't bag on my thinking that integrity actually still means something.
Relax, man, he needs glasses.
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Old 02-17-2015, 12:39 AM   #59
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Re: Telling A Customer You Under Charged


I never told a customer that I undercharged one time in my life. I also never raised my price higher because I underbid a job. Customers always ask if my contract price is firm and I tell them that I will not raise their price even if their house falls on top of me and the reason they called me is because I am supposed to be a professional who has experience and professionals who have experience are supposed to know what we can run into and we take those unexpected things into consideration. I tell customers that changing their price would be admitting that I made the mistake. Why should the customer pay for a mistake that I made. Maybe, if the customer knew the price was going to increase after they started the job they would have scratched the job. I think raising the price lacks integrity and lacks good business ethics.

"Sign a contract for the price you quote, be a man and live with it" Don't ask someone else to make up for your mistakes. Otherwise, you are a charity case!

Wow!!! I'm in a bad mood, today! Maybe, it is because of my age, or maybe I am losing it!
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Old 02-17-2015, 07:41 AM   #60
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Re: Telling A Customer You Under Charged


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