Drop your price?

[nyerinfl]

Gents,

Thought I would share an e-mail I got today, little background, I submitted a proposal for a small resi one room addition, few hi hats, plugs, plus a sub-panel, nothing major, small job for me in comparison to my typical work. Anyway I give a price of $2,800 and after about 2 1/2 weeks I get this:

Is there any way you can reduce your proposal to $2,650.00 ?.we are ready for permit submittal next week and would like to award you the contract. i know this is small change contract but see what you can do.[FONT='Tahoma','sans-serif']

Typically I just say no to lowering or haggeling, but were talking about dropping $150, which I'm not exactly counting on to pay rent, to get a signed contract. I just got caught off guard that they would even bother to ask me for such a small drop?[/FONT]
[FONT='Tahoma','sans-serif'][/FONT]
[FONT='Tahoma','sans-serif']What would you do? I'll probably agree to just drop my price and take the job, but let this guy (not dealing with HO direct, more of a property management firm/GC agent) that I'm doing him a 'favor'. He's already given me a few referalls (nothing too good) and I haven't done any work for him yet.[/FONT]

 

[mdshunk]

My reply would be something like this, "I would certainly be happy to accomodate your electrical budget of $2650. The easiest way to do that would be to eliminate the two recessed cans in the west hallway area, or the TV Cable outlet in teh room. Please let me know which one you pick.". Something along those lines.

 

[prostock]

Just ask him which part of the job did he want you to not do for the $150

 

[chris kennedy]

Can't you make up $150 in an extra?

 

[brian john]

I understand your need for a reduction and I have carefully calculated my cost the best I can do is split the difference. If you really want/need work.

 

[mdshunk]

Can't you make up $150 in an extra?

Something like, "Oh, I see ma'am. You wanted breakers in that subpanel for your new circuits? That'll be 150 dollars."

 

[nyerinfl]

Can't you make up $150 in an extra?

I'm sure I can, I know he's getting a tankless WH installed later on, and some other things, also whats $150 anyway? I don't care about the $150, and honestly I think the 'what don't you want me to do' approach will and could cost me the job, and a possible contact who has nothing to gain giving me these referalls. Not to say I don't use the 'what don't you want' approach, but it's just usually when people ask for a discount they ask for a REAL discount, not a tank of gas...

 

[mdshunk]

Not sure I'd call 5% anything other than a real discount. $150 bucks ain't much, but 5% sure is. That said, you just now said this was a job gained from a person who gives you lots of referrals. I'd probably give the discount in that case just to not tick off this customer's friend who referred him in the first place. There are times, however, where if the original referrer learns that you can be beat up over price, he'll start to clue in all the people he refers in the future to that fact.

 

[nakulak]

I'm really not sure ?[/font]?[/font]?[/font]
what I would ?[/font] do with that one. I think I would ?[/font]?[/font]?[/font] have to [/font] go with my [/font] gut and/or // /[/font] play it by ear. However [/font], I would be [/font] inclined to call the guy and tell him [/font][/font][/font] "oh, [/font] by the way, I [/font]'d up my bid and I need you to add $150.00 to it"

 

[tonyou812]

try to include something that doesnt really cost you very much like change out some other outlets or replace something else? But I would never lower my price on a small jobber like that. Then the whole time you feel like they got the better of you.

 

[boboelectric]

The customer asks , "Can you do any better? Me, Thats the best I can do."

 

[chris kennedy]

Jets Fan,

Around here we try to avoid jobs of this scale in the first place. Theres only pennies in them. I know your already spread out(Broward and Miami-Dade) so I would have to wonder if its worth it.

 

[480sparky]

I'm really not sure ?[/font]?[/font]?[/font]
what I would ?[/font] do with that one. I think I would ?[/font]?[/font]?[/font] have to [/font] go with my [/font] gut and/or // /[/font] play it by ear. However [/font], I would be [/font] inclined to call the guy and tell him [/font][/font][/font] "oh, [/font] by the way, I [/font]'d up my bid and I need you to add $150.00 to it"

font button stuck? :grin:

PS, love the avatar! :smile:

 

[nyerinfl]

Jets Fan,

Around here we try to avoid jobs of this scale in the first place. Theres only pennies in them. I know your already spread out(Broward and Miami-Dade) so I would have to wonder if its worth it.

These jobs to me are good for mainly generating cash flow inbetween contract job payments. The main concern I have is keeping my contact, as they do get some decent sized jobs through their firm and I would like to be at the top of their EC list.
Not to mention the fact I've already got some time invested in this job (looking at job, and telling the clueless architect how to lay out the receptacles, and feeder size for the sub-panel) and would rather not lose time already spent.

Is $150 worth losing both job and contact?

 

[mdshunk]

Is $150 worth losing both job and contact?

Of course not, but this information was not given in your original post. It changes the picture entirely. Sometimes, given the specific customer, these jobs might even be free. Call it a kickback, if you want.

 

[emahler]

What's your projected profit on the job?

Cause this $150 is coming out of your profit.

 

[bobbyho]

This may be a bit different. What if you say "Ok, can you think of any members of your friends or family that you know can use my services?" It does not make up for $150.00 (which there must be something with that number for him to mention something that small) but it may guilt him into actually producing referrals. Then in the old Tom Hopkins school, keep following up on it. I don't know why I came up with this approach, just thinking on the keyboard.

 

[nyerinfl]

What's your projected profit on the job?

Cause this $150 is coming out of your profit.

I'm ballparking about $1,100-$1,300 my cost labor/material. 2 men one day rough, half day finish. It does affect my bottom line, but it won't put me in the red, or even close to it.

 

[emahler]

I'm ballparking about $1,100-$1,300 my cost labor/material. 2 men one day rough, half day finish. It does affect my bottom line, but it won't put me in the red, or even close to it.

Then run with it. Tell him ok, but only if he pays you COD. No sense cutting your price, to do a cashflow job, then get strung out for this payment.

 

[chris kennedy]

and telling the clueless architect how to lay out the receptacles, and feeder size for the sub-panel?

Welcome to South Florida.

I'm ballparking about $1,100-$1,300 my cost labor/material. 2 men one day rough, half day finish. It does affect my bottom line, but it won't put me in the red, or even close to it.

One little home owner, GC or other subs hickup costs you a day and ....

But you know that.