Does anyone have an open book policy with customers? By that I mean show the customer the entire estimate including the details of markup's and labor. Also a page showing the details of why it costs so much per hour to operate.
People that ask those kinds of questions and want things spelled out like that, are the one's you want to, run, Forrest run, away from.
I have had some customers balk at the price. I would like to lay it out in front of them and say here's why we charge what we charge.If someone balks at the price, I tell them we could install junk materials and not provide a warranty but, I would have to sub that out then.
Dont dirty up my good name.
They won't show me their tax info or bank account info so why would you ever show operating costs, markups etc.. only thing they see is one price with breakout sheet for materials everything else is company info and unless they work for me or aremy accountant no one ever will see that info.
I'm sure it comes down to being good at sales...
I don't really care about their bank account as long as they pay what I ask. I just want them to see why it costs so much to operate a business. I don't think most of them know what it takes.
If I go to a customer and take the unknown out of a proposal I think we will be on better terms from the start. Like I said I'm not doing this as a bargaining chip. They may look at it and say "you must be crazy charging that much profit". If that's the case I don't want them as a customer. I have found I can't (or more correctly will not) compete with the less expensive contractors.
I can see if you are cost plus that will work. What happens when you bid one aspect of the project too low or a problem comes up? Do you just explain to the customer that you made a mistake in the estimate?