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Last week I received an email requesting a free estimate for a basement finish. I went over to the house and evaluated the project and within 48 hours had sent over a bid to the homeowner. A few days later I got an email asking if I could complete the project for $13,000. This is a 900 sq ft basement finish with 10 foot ceilings. I did not respond to this request. The next day I received a phone call from the homeowner asking me if I could do any better on the estimate and to let him know by the end of the day. He told me he was getting estimates from all over the place and would like to see if this was my best price. YES! That is why I took the time to put the bid together. This guy is taking advantage of the amount of people that are out of work right now. I can't help but think that his project, will not turn out well.

www.kcbasementfinishing.com
 

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I own stock in FotoMat!
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The moment you come down on your price, it sends the message, "I was trying to rip you off to begin with".

If someone says they can always find someone cheaper, I always respond with, "I can always find someone more expensive, so can I raise my price then?"

If someone else wants to slave away in order to eat hot dogs and live under a bridge, I'll stay and home watching Judge Judy while they go broke.
 

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The price is the price. He wants you to participate in a reverse auction. NFW
 

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The moment you come down on your price, it sends the message, "I was trying to rip you off to begin with".

I someone says they can always find someone cheaper, I always respond with, "I can always find someone more expensive, so can I raise my price then?"

If someone else wants to slave away in order to eat hot dogs and live under a bridge, I'll stay and home watching Judge Judy while they go broke.



When some one tells me that "so and so" is cheaper, I tell that they had better call "so and so", cuz this is the price.
 

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Tell them "sure you can come in cheaper, if he doesn't mind sacrificing material and astedic qualities...their are a thousand ways you can cut corners"...some people shop Walmart...some shop Tiffany's.
 

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It amazes me the time so people must have. We have been seeing 5 to 7 bidders on some jobs. I just don't have that kind of time.

I've worn out the line "in light of the economy we have already reduced our price points as have our suppliers and subs. That is the discounted price". The price is the price.
 

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Are you saying..?

Last week I received an email requesting a free estimate for a basement finish. I went over to the house and evaluated the project and within 48 hours had sent over a bid to the homeowner. A few days later I got an email asking if I could complete the project for $13,000. This is a 900 sq ft basement finish with 10 foot ceilings. I did not respond to this request. The next day I received a phone call from the homeowner asking me if I could do any better on the estimate and to let him know by the end of the day. He told me he was getting estimates from all over the place and would like to see if this was my best price. YES! That is why I took the time to put the bid together. This guy is taking advantage of the amount of people that are out of work right now. I can't help but think that his project, will not turn out well.
Are you saying you received a request to bid on an exact set of specifications? Or are you saying you went to the site and put together a recommended plan of action and then put a price to it?

Obviously there's a huge difference in the two. How does the owner know all his bids are for the same quality material, craftsmanship, insurance coverage, clean up methods, time frame, etc?

Maybe, just maybe, if you sit down with the guy you can point out some differences in the specs?
 

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They want a better price than 13,000? Tell them you think 14,000 is better.


I've worn out the line "in light of the economy we have already reduced our price points as have our suppliers and subs. That is the discounted price". The price is the price.
Yes, something like this is the best way, tell them you've already given them the best price you can.
 

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Or find out what they are wanting to pay, and then tell them what they can get for that amount of money.
 

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I never just lower my price. If a customer comes back and wants something cheaper, I will offer to lower the allowances on the fixtures and materials to be used. If they want the same stuff for less money - too bad!! I am not in this business to "trade" dollars and make no money!!
 

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Last week I received an email requesting a free estimate for a basement finish. I went over to the house and evaluated the project and within 48 hours had sent over a bid to the homeowner. A few days later I got an email asking if I could complete the project for $13,000. This is a 900 sq ft basement finish with 10 foot ceilings. I did not respond to this request. The next day I received a phone call from the homeowner asking me if I could do any better on the estimate and to let him know by the end of the day. He told me he was getting estimates from all over the place and would like to see if this was my best price. YES! That is why I took the time to put the bid together. This guy is taking advantage of the amount of people that are out of work right now. I can't help but think that his project, will not turn out well.

www.kcbasementfinishing.com

Your point is well taken

Here is the problem. Instead of you making an appointment and going over to resell your job, you just expect your "bid" to do the job.
Seperate yourself and show how your bid is the best one.

At this point you are doing nothing other than give a price to get the bid.

How would you expect them to react??
 

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Your point is well taken

Here is the problem. Instead of you making an appointment and going over to resell your job, you just expect your "bid" to do the job.
Seperate yourself and show how your bid is the best one.

At this point you are doing nothing other than give a price to get the bid.

How would you expect them to react??
Total agreement.

Anyone can compare numbers. Hardly anyone at the homeowner level can evaluate specifications and identify the pros and cons, especially when they are blinded by low price.
 

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I feel this almost all the time now. I get in the truck, drive to proposed job site, come back home and get a price together knowing full well that there's no way this guy's going for this price.

There's definitely a sector of the public that knows full well that the construction industry as a whole has been hit hard and they are trying to take advantage of that.
 

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Are you saying you received a request to bid on an exact set of specifications? Or are you saying you went to the site and put together a recommended plan of action and then put a price to it?

Obviously there's a huge difference in the two. How does the owner know all his bids are for the same quality material, craftsmanship, insurance coverage, clean up methods, time frame, etc?

Maybe, just maybe, if you sit down with the guy you can point out some differences in the specs?
That's a great idea to better prepare your estimate with more complete details, but this is a free estimate. When was the last time you got something for free that was worth anything? A detailed estimate with a complete listing of materials etc, isn't something that should be given away for free, in fact it's something that should be charged for.
 

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They want a better price than 13,000? Tell them you think 14,000 is better.




Yes, something like this is the best way, tell them you've already given them the best price you can.

I have actually done that. Someone called asking for 'a good price'. I worked up a number, $1,500. I called and told them, and they asked if that was my best price.

I said, "No, you asked for a 'good' price. My 'good' price is $1,500. A 'better' price is $1,800, and my 'best' price is $2,100."

I felt like Gerrett Morris on the phone with Jane Curtin in How to Beat the High Cost of Living.
 

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I have actually done that. Someone called asking for 'a good price'. I worked up a number, $1,500. I called and told them, and they asked if that was my best price.

I said, "No, you asked for a 'good' price. My 'good' price is $1,500. A 'better' price is $1,800, and my 'best' price is $2,100."

I felt like Gerrett Morris on the phone with Jane Curtin in How to Beat the High Cost of Living.
What was their reaction to that?
 

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I'd review a proposal with some one going over the numbers to insure he knows what he is getting to differentiate myself for the one time only and would only reduce a price if they had something to offer in exchange...like say dumpster fee or something I had a fixed price on.

They play hardball you play salesman.

This is a one time chance to go into an agreement and sell yourself and sell the future job even if you can't make that deal. I have been beaten on pricing, and that is OK. What I aim to do on every job is to win the cutomer as sometimes I just can't work for nothing, but Ii can set a good impression that is worth a future fortune.

Penny pinches are not your best customers.

I did sell a window job on some one who was trying to get cheaper windows from me so I said the only way I could reduce the price was if the added enough windows that I could throw them a %10 discount on quantity. I got the job by actually selling them more. Go figure.

Sometimes it is good to meet the customer halfway with something free or included that they didn't know you were doing that makes you stand out from the competitors. I have learned you can take a consultant approach and tell them you can meet them as an adviser but must see the other contracts to compare.

Tell them you won't even take on the job if you can't beat it by $100 or some figure you can gamble with and you will give them one hour of your time to advise them on their other bids (sort of a free consultation meeting). You will find out the competitors prices, make a judgment if you can beat them or you will find out they have no other bids and are playing you. If handled right you will have at least come across as a proffesional and know what you are talking about and willing to go the extra mile to save them a fixed cost that you govern.

One meeting, one hour and you get to set the table then you walk leaving them with your strengths in place.
 
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