Best way?

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LarryFine said:
Try this:

You: "This complete job (blah, blah, blah) will be $3,475."

Customer: "That's too much, more than I expected, etc. How about $3,000?"

You: "After looking over the numbers again, I can offer it to you for $3,750."
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I used that teqnique once when I was having a garage sale. I was selling something for $50 that was a steal at that price:

Lady: I'll give you $35
Me: Sorry it's $50
Lady: $40
Me: $50
Lady: $42
Me: $60
Lady: Wait you went up.
Me: Yep and now I think we're probably going to be able to work something out because I'd be willing to come down to say...$50.
 
cowboyjwc said:
I used that teqnique once when I was having a garage sale. I was selling something for $50 that was a steal at that price:

Lady: I'll give you $35
Me: Sorry it's $50
Lady: $40
Me: $50
Lady: $42
Me: $60
Lady: Wait you went up.
Me: Yep and now I think we're probably going to be able to work something out because I'd be willing to come down to say...$50.
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The question is how much unsold junk did you have to pack back into the garage at the end of the day haggeling makes garage sales fun.
 
Rewire said:
The question is how much unsold junk did you have to pack back into the garage at the end of the day haggeling makes garage sales fun.
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And some guys like to run their business like a garage sale, the garage sale is the one time you can operate like a third world country, street market, and get in practice for out future markets!
 
I disagree whole-heartedly with most of what I have read here. Noegotiation is a part of business, and it always will be. Why not ask for a discount? What's the worst that can happen....they say "No"? That wouldn't scare me. There is a huge difference you all are missing. At Wal-Mart the cashier that rings you up has no authority, it's not her money that is involved on the transaction. Where as with the electrical job, this guy has control over the price, and it's hismoney that is involved. He has the power to say "Yes" or "No". You can't fault someone for asking.
 
HyVOLtage said:
There is a huge difference you all are missing. At Wal-Mart the cashier that rings you up has no authority, it's not her money that is involved on the transaction.
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Nobody missed it...it was simply ignored.
The Wal-Mart example is one of a retailer having a sale...apples to oranges for this thread.
 
I would like to make a million dollars on a single job but so far that has not happened doesn't mean it could never happen just means it hasn't happened yet in the mean time I still have bills to pay so if I have to adjust a little for the market as it presents itself at that moment which is what negotiation is I will . I like Sams idea ,make a dollar on each one but sell a million.Getting the job does not always mean profit but not getting the job always means no profit.If someone put a dollar on the table and told you to pick it up would cost you a quarter would you walk away?
 
Rewire said:
If someone put a dollar on the table and told you to pick it up would cost you a quarter would you walk away?
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Electrical contractors would bid on picking up that dollar until someone was willing to pay $2 to pick it up and he would get the dollar. :)

Some really want that dollar bad and will pay anything to get it.
After all they may find $5 in change under the table after they get that dollar. :)
 
aline said:
Electrical contractors would bid on picking up that dollar until someone was willing to pay $2 to pick it up and he would get the dollar. :)

Some really want that dollar bad and will pay anything to get it.
After all they may find $5 in change under the table after they get that dollar. :)
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and most of them live here, OOB electric
 
Rewire said:
The question is how much unsold junk did you have to pack back into the garage at the end of the day haggeling makes garage sales fun.
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Nothing, it was one of those "you buy or goodbye" sales.:grin:

I gave away a whole bag of stuffed animals that didn't get sold to a childrens crisis center. My point was, the item might have been a $100 item, I had already done all the haggaling I was going to by marking it down to $50.

When guys really want the work they will sharpen their pencils and give the best price they can. Haggaling is over.

Many of you on here say that you need to make $90 p/hr to run your business. If that's what you need to make, then that's what you need to make and why start fudging? If they want it for $70 p/hr then have them call the guy that can do it for $70 p/hr, but settle that before hand not after they get handed the bill.

I once relayed on this forum how many breakers I had reset for free and guys jumped all over me that the was a justified $100+ billable call. So my point is if you are going to charge $100+ for a two minute call why would you give a break on an all day job?
 
We are not a Commodity

We are not a Commodity

The problem is the public has been taught to treat the trades as a commodity.

We do not sell a complete finished piece of equipment you can unload, plug in and turn on like with a new freezer.

They think they are just traveling from Best Buy to Circuit City to Home Depot with a circular in their hands when shopping with us to see who has the lowest price. They need to realize they are purchasing our knowledge and talent we will utilize to ?engineer? ?build? ?install? ?fabricate? and any other disciplines required to produce what we provide.

What the public is looking for is no different than when they shop for a Doctor who will treat them when they are conducting business with us. When was the last time you negotiated with your doctor over his charges, or did you just pay the bill knowing you have received ?value? for your money and the best you could find for your money even though insurance pays for it.

This needs to be explained to customers for them to realize what we actually bring to the table and get them out of the commodity mindset because not all contractors are alike and not all will give them the same finished product.

It takes knowledge, talent and skill to install that toilet correctly, the A/C correctly or a new service panel correctly, and that is what they are buying, not a new house already built they can just walk into and sit down.

Sell the "value" and you can get whatever price you ask for. Don't sell the value, and you are just competing on price alone.
 
satcom said:
I think your missing the point, of cost of doing business, with the direct cost, sure you can go to another phone company for your service, but the unit rates will remain the same with that company, and the same goes with your vendors, you can change a vendor, but every price he quotes you will pass on to your customer.

You have a phone company now, what are you going to do move to another company every time you deal with a customer?

Or change your yellow page Ad. after it is published and get a better Ad rate?

The State makes the laws that controll the Worker comp insurance rates, you can run to a hundred brokers, but the rate will remain the same.
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Actually, no. I don't usually jump from one company/contractor to another over just price, for many of the reasons that have been listed in this thread.

The only time I changed phone companies was when I have moved and the current phone company didn't offer service where I was moving to. Workers comp rates are set, but liability and coverage on your truck/vans are not.

One thing is certain, if you never ask for a discount, it is less likely you will get one. Similarly, not all people who ask for a discount expect to receive it. I don't think less of a vendor/contractor who sticks by their prices. I don't think less of a client who asks for it to be less. Both are a part of doing business.
 
HyVOLtage said:
I disagree whole-heartedly with most of what I have read here. Negotiation is a part of business, ....
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Then you're essentially agreeing, then. Yes, negotiation is part of business. It is therefore incumbent on the person selling the services to realize this and have the closing skills to not budge on price.
 
mdshunk said:
Then you're essentially agreeing, then. Yes, negotiation is part of business. It is therefore incumbent on the person selling the services to realize this and have the closing skills to not budge on price.
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Being rigid in business is a mistake you have to remain flexible.Getting my price is always the goal but I have found you never start at the goal.I seldom have the need to negotiate my price but when the need arises I am not going in with the "I won't budge" attitude or I will never get my price and if giving a little gets me the work then I see that as good for me as a little profit trumps no profit any day of the week.
 
electricguy61 said:
I try to read the customer as I'm looking over the job. If I feel the need, I can always find some room for negotiation.
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my thoughts exactly.

if it is a small job, we never negotiate (unless there is a bunch of other work associated with it).

if its a one-shot deal, forget it.

if its a sizable job, we will always take a second look at our bid - provided that the client is worth it. There are a lot of mitigating circumstances, and lots of reasons to tell them to take a hike, and lots of reasons (future work, past work, networking leads, etc.) to negotiate. I don't think one answer fits all circumstances.

(i agree with whoever said zig ziegler rules)
 
Marc, I like your approach. When running your own business, you must wear many hats. That sales hat is vitally important!
Always be prepared when "selling" the job.
I know there are times when I am simply relieved that I finally completed a quote and sent it out to a customer.
Getting the quote completed is one thing, but "selling it" is crucial. Let the customer know what value you are bringing to this job that your competition isn't.
I have had many customer say, gee we really like you but...Ugly Harry can do it for this price....
I will offer portions of the job to be removed or scaled back somehow to reduce the price.
 
Cheap Price Cheap Job

Cheap Price Cheap Job

Yes , then when you agree to do the job for less and you forget and leave something out or make a mistake.
One of my customers said well what about such and such.
I said well since you wanted a cheaper price I had to figure how to cut cost. So you got a cheaper job, too. He was'nt real happy about that. But I got some gratification for saying that.
 
Reduce the job scope AND update contract!

Reduce the job scope AND update contract!

Yes, cheaper job is possible, take this and this and this out...
OK, here is your Rev2 quote and updated contract, sign the dotted line!:)
 
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