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Do you price haggle?

10K views 25 replies 21 participants last post by  DownSouthAce  
#1 ·
I never haggle on my pricing UNLESS someone beats my bid.
Customers will say something like "xyz company beat your price by this much but we would really like to use you guys". In these cases I try to point out the differences between my bid and their bid and if needed I meet them in the middle.

What I've noticed though is that most people are expecting to haggle with me when I give them a quote. I can't stand the thought of giving people an inflated price just so I can come down and make them feel good.

Bottom line is I will never change my business model to include haggling, but I wonder how many of you guys haggle. Also, why do you haggle?
 
#2 · (Edited)
Do I price haggle? I have a reputation for it. I argue with my jewish friends who is worse... Jewish or American?

This is only when I buy something. When I am selling something I avoid haggling like the plague. You couldn;t believe how easy it is NOT to haggle by shutting down the customer on the first try.

If someone asks me to match a price I *might* consider it. I ask them to see the proposal. The main rason I am asking is so I can tear it apart. I know very very very few, if any, proposals will be as details as mine; so I know I can find some detail missing. "Oh look no wonder their price is cheaper! They forgot X"

What you said about not giving an inflated price is what you should tell them. "Mr. Customer I know of some companies who inflate their price because they know customers are trained to ask for discounts on reflex. You ask for a discount they mark down the job, you are happy and they got the job.. but what they really did was lie to you. I don't play those games."

I said above I would consider haggling. If they show me the competitor's quote and everything is the same, and it's from a reputable company, then I have to ask myself how badly I want the job. Do I stick to my guns? More than likley I wills till stick to my guns. If it is a highly profitable job, and I am sure my measurements are accurate, and the job is in my main service area I might give them something.

I've walked from quite a few jobs when told by the customer I can have the job if I lower my price. Quite a few have hired me anyways. Some have not...b ut ya can't win em all.
 
#3 ·
Hi Nathan,

I know all to well about the price haggle that goes on. I have learned that the more money they have, the more of a discount they demand, so if you mark up your pricing to compensate, then your competition gets you, or you undercut and you're out of business in 2 years.
Tell people you don't haggle, you are giving them the best price with a fair overhead and profit.
I hate bids that the minute I question them, they come down, leaving me to wonder why they did not give me the lowest price in the first place. Every time I have gone ahead and used them we run into problems down the road because of the loss of trust factor.
The MAIN thing you are selling is yourself. Humor, honesty and good references have gotten me alot farther than being a smarmy b***s***r. Not "rich", mind you, but busy and content.

KC
 
#6 ·
We don't haggle. We just give them the option of changing the scope of the project.


"I have learned that the more money they have, the more of a discount they demand"

That is the truth! Of course, that is how they got more money in the first place....


Tim
 
#7 ·
Haggle is not the term I would use, barter would be something I would go for. But it has to have value, services, property etc...




TimWieneke said:
We don't haggle. We just give them the option of changing the scope of the project.


"I have learned that the more money they have, the more of a discount they demand"

That is the truth! Of course, that is how they got more money in the first place....


Tim
 
#8 ·
Bartering is when you exchange goods or services for other goods or services instead of in exchange for money. I am not quite sure the term barter applies to someone asking me to reduce my price, unless they are telling me:

"What if I give you $X dollars, which I am aware is less than your asking price; but then I give you this sack of potatoes valued at $Z to make up the difference?"

Honestly I would consider a barter. I know a guy who does full remodels. He was remodeling some rich guy's kitchen and the guy ended up giving him a down town condo in exchange for the work. The rich guy no longer used the condo and decided it was time to get rid of it.
 
#9 ·
"Haggling" can be somewhat of a relative term. When I say that I mean, if I am quoting a job where for example the person initially asks for a straight deck only (no skirting, railing, benches etc.) and upon discussing the extras they say they might be interested in additional features, what I will do is offer them extras at a "reduced" price. Something along the lines of $1 less per foot for an upgraded railing, $1 less per sq. foot of skirting etc. I do all of this during the negotiation phase of providing the quote. I point out the higher quality of my work and my 5 year workmanship warranty as reasons for my pricing. Once my quote is delivered I do not go back on my price. Most people like to think they are getting a "deal" - don't we all? It would have to be an extreme circumstance for me to haggle after the point of the quote being given. If they're going to nickel and dime you from the beginning just wait until you start doing the work...
 
#11 ·
Interesting fact. I just hired a new sub for windows. He is $25 per window cheaper than my previous sub. Today I sold a BUNCH of window jobs by calling unsold bids and telling them I am running a one day sale and they can save $20 per window.

I'm gonna make $5 profit more per window than I would have previously and I sold a BUNCH of jobs. My new salesman is loving me today.
 
#12 ·
I rarely haggle, maybe 6 times in the last 11 yrs. Probable 4 in the first 5 yrs. When I meet the client for the first time I let them know that I will more than likly not be the lowest bid but insist that they get at least 3 bids and I am normaly in the middle. Like Grumpy my estimates are very detailed with labor and materials brake downs. 9 x's out of ten even if I don't get the job they usually are very impressed with my estimate. But I think planting the seed that you dont plan on being the lowest bid keeps them from haggling.
 
#13 ·
I can always negotiate what I will, when I will do it, and how I will do it. But I can never negotiate on my price, cause it truly is the lowest possible price figureing in my overhead and profit.

I use an hourly base rate to figure my jobs, that rate includes overhead and profit, to cut the price would be to cut the profit. And I dont have a huge profit margin.

My qoutes are very detailed, right down to the brand of paint. I also keep a sheet in the truck detaling how I feel about low bids, and why mine probably will not be the lowest.
 
#14 ·
Arizona said:
Tell people you don't haggle, you are giving them the best price with a fair overhead and profit.
I hate bids that the minute I question them, they come down, leaving me to wonder why they did not give me the lowest price in the first place. Every time I have gone ahead and used them we run into problems down the road because of the loss of trust factor.
Priceless. I've never thought of it that way. As you can see I've haggled :rolleyes:
 
#15 ·
Haggle Why

I Do Not Negotiate On My Craftmanship,so Why Should I Negotiate On Cost. You The Customer Are Paying For My Skill,experiance,and My Passion Of The Work That I Do.therefore If You If You Do Not Believe That My Prices Contain Everthing About What And Who I Am. Then Please Go To A Monkey Who Does Not Mind Getting Paid Peanuts.i Believe That I Am Worth Whatever I Say It Is Going To Cost For The Final Product.to The Builder/craftsman If You Haggle This States To The Customer That You/do Not Believe In Your Work,you Are Not Worth That Amount,
 
#16 ·
toddy said:
I Do Not Negotiate On My Craftmanship,so Why Should I Negotiate On Cost. You The Customer Are Paying For My Skill,experiance,and My Passion Of The Work That I Do.therefore If You If You Do Not Believe That My Prices Contain Everthing About What And Who I Am. Then Please Go To A Monkey Who Does Not Mind Getting Paid Peanuts.i Believe That I Am Worth Whatever I Say It Is Going To Cost For The Final Product.to The Builder/craftsman If You Haggle This States To The Customer That You/do Not Believe In Your Work,you Are Not Worth That Amount,
I Remember Another Poster Doing This, And For The Life Of Me I Cant Understand Why, Seems Awfully Time Consuming.
 
#18 ·
toddy said:
I Do Not Negotiate On My Craftmanship,so Why Should I Negotiate On Cost. You The Customer Are Paying For My Skill,experiance,and My Passion Of The Work That I Do.therefore If You If You Do Not Believe That My Prices Contain Everthing About What And Who I Am. Then Please Go To A Monkey Who Does Not Mind Getting Paid Peanuts.i Believe That I Am Worth Whatever I Say It Is Going To Cost For The Final Product.to The Builder/craftsman If You Haggle This States To The Customer That You/do Not Believe In Your Work,you Are Not Worth That Amount,
My thoughts exactly!
-will,
 
#19 ·
I never haggle on my pricing UNLESS someone beats my bid.
Customers will say something like "xyz company beat your price by this much but we would really like to use you guys". In these cases I try to point out the differences between my bid and their bid and if needed I meet them in the middle.

What I've noticed though is that most people are expecting to haggle with me when I give them a quote. I can't stand the thought of giving people an inflated price just so I can come down and make them feel good.

Bottom line is I will never change my business model to include haggling, but I wonder how many of you guys haggle. Also, why do you haggle?
No way. I act as though the financial side of the business is beyond my control, which it really is. I'm just passing on costs.

As I've mentioned in other posts, I just crunch the numbers. Something in the scope would have to change.
 
#21 ·
Only in certain situations. If I have nothing scheduled and the job is worth some decent money.

For example had a guy needed a ceiling patch and stipple done and afew small ceiling stains kilz. Very small area. Told him it would be a little under 400 to get done he told me he had somebody else to do it for cheaper...told him we price match and turned out we where only off by a few 20 dollar bills. Landed the job and did it in a couple hours and made several hundreds dollars .

You have to swallow your pride sometimes and understand everybody is not going to pay the premium price for every service. Understand if you dont get the money someone else will. That doesnt mean take every ****head or **** job that comes your way. But if you go into EVERY business venture with the attitude "my price is my price" you end up losing relatively easy money on the table.
 
#22 ·
And when you “price match” your letting the client control you. You need to learn this hurts us all. A “few $20. bills add up when you leave a few here/there. A ceiling patch, texture & paint. What about masking, prep, clean-up hopper & sprayer-brushes. Under $400. You made gas money & maybe a sack of tacos

Mike
 
#24 ·
Get off your high horse. Your not letting the client "control you". They don't have a joystick in your back. It's your CHOICE to haggle. Why would you walk away from a job when the difference of is such a small margin. Thats completely idiotic sir. 90% of the time I don't haggle.

Now if the job was for 5k and the difference in price was $2500 then no don't take the job.


When you have guys sitting at home because you choice to walk away from the job for a few hundred bucks I don't want to hear it tbh.
But the whole letting the client control you is a completely retarded viewpoint to have. That job was some of the easiest money I have made and the client was absolutely a pleasure to work for and wants to get more work done, not that I should have to explain that, Contractors like you who seem to have to have every job your way are a problem
 
#25 ·
Exactly what I do when some Bozo says, "Give me your best price." I respond with, "$15,000." Then they go into cardiac arrest.

I tell 'em, "Hey, $10,000 is a good price. $12,000 is better, and $15,000 is best. You never qualified 'best' as 'best for who'."