Match or beat competitors bids?

Nope.

Well, perhaps if I'm really desperate.

Is it on a $300 job? Then no. $2,000 job maybe.

Some people like to haggle, so if they make the point to call you and tell you $200 is the deciding factor- I'd consider matching the other bid if I had a good mark up already, or a easy job.

And if your name rhymes with "Quiet" I will take that job every time.

I ain't Wal-Mart Electric. I don't compete on price. I leave that to the hacks and wanna-bes.

If they got someone else to do it for a pair of c-notes less, go right ahead. Call me when you want me to finish the job 'cuz he went belly-up.

I wish them best of luck with the project send carry on with my day.

I had a guy who called me out to bid on some masonry work last summer, all was going well until he pulled out the other price he got, he asked me if I could match it or beat it by "$50-$100" or so,
I looked over the estimate and read the section where it stated they will offer a 10% discount if the homeowner gets a matching or lower estimate.
I handed it back to him and simply walked off, time wasting s.o.b.

480sparky said:

I ain't Wal-Mart Electric. I don't compete on price. I leave that to the hacks and wanna-bes.

If they got someone else to do it for a pair of c-notes less, go right ahead. Call me when you want me to finish the job 'cuz he went belly-up.

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Well Sparky if the guy could go belly up on $200 maybe you oughta raise your prices.

Who cares what the other guys are charging. I used to think there was a going rate. There's no such thing. There's guys who will work for $50 a day and guys who won't get out of bed for less than $500. Keep firm on your price. If they are price shopping they ain't a customer you want anyway. If they are cheap they will have cheap friends and as soon as you give in your working for people who care more about price than quality.

I have had this a few times and they just need to be reasured that they are spending there money wisely. They are calling you back because they want to work with you. Re confirm why you are as good as they think you are and seal the deal. If it makes them feel better and you need the work then take off $50 as a one time courtesy.

I've never lowered prices after being asked. It sets the precedence that you're overcharging to begin with.

gastek said:

So do you match or beat a competitors bid when a customer calls you back and says they got another bid(s) for less? Say $200 less? I know it's all relative but just wondering.

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If you could do it for less why not bid it for less in the first place. My price is my price. You want a $200 discount, what can you live without?

When the economy was better i can see being more stubborn with pricing but nowadays losing a job you could make 7-800 on over 100$ sounds crazy to me. Lost my ego in 2008. Maybe just where i live but work is slow as ever past few years

As a side note, I give me price and that is that. Just curious what others do if faced with a situation like this. If a customer calls me back and says XYZ company can do it for less, $200, I tell them to go for it. I feel I am valued at X and that is why I set that price.

TNT and centerline nailed it for me... I never lower my price but I will gladly reduce the scale of the job in order to me the clients budget.

With that I'll adjust it only once - in the past I've had potential customers quibble back and forth for weeks asking for additional changes. It simply isn't worth the effort.

If someone is really frugal I generally get those vibes during the first meeting....

guess its all relative to the type of business. We are usually in and out in a few hours. If there is a lot of time put in with the estimate, travel time and back and forth on the phone i can see where you guys are coming from

NYGUTTERGUY said:

guess its all relative to the type of business. We are usually in and out in a few hours. If there is a lot of time put in with the estimate, travel time and back and forth on the phone i can see where you guys are coming from

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It doesn't matter what you do. Cost and overhead plus profit equals your price. If you can lose $100 to get a job then you are either robbing yourself or overcharging.

I get this a few times a year....I don't change my prices....most of the time I win the bid anyways

if they are calling you back to match that means ===they really want you, but like the other guys price better....stick to your guns...never lower a price unless you change the specs

ive lowered my prices a couple of times...always on high dollar projects going into winter....every time the customer wanted more and more...they weren't satisfied with 1 reduction...once they know you will lower they will ask for freebees too.....I am not sure if I would lower them ever again in those same situations....

lower your prices to match = your desperate

TNTSERVICES said:

It doesn't matter what you do. Cost and overhead plus profit equals your price. If you can lose $100 to get a job then you are either robbing yourself or overcharging.

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What you call overcharging I might call charging what the market will pay. If the market will pay more than I need to charge, then I'm going to price accordingly. Sometimes that leaves some wiggle room to come down if I really want the job for whatever reason.

Never lower the price without a concession. I've found the best response is to ask the customer how they would like to modify the project to meet their budget.

I always respond just once when I get a buying signal like that. I can remember several good jobs that were negotiated.

There is a difference between negotiating and price shopping. If I get the feeling the prospect is just trying to beat me down on the price, I reply with good luck and then move on.

TNTSERVICES said:

It doesn't matter what you do. Cost and overhead plus profit equals your price. If you can lose $100 to get a job then you are either robbing yourself or overcharging.

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Im a very small business not a ton of overhead. If its a decent size job ill give the guys a hand a do it much quicker. Make own gutters so material cost is pretty small..I prob leave a few bucks on the table occasionally but gutters is a volume business so it all evens out int he end