Don't Back Down

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frizbeedog

frizbeedog

Senior Member
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Oregon
Have any of you ever lowered your bid or estimate after you have already presented it, or after complaints from the customer about the price?

I have been taught not to back down. The price for a job is what I have figured I need to cover expenses and make a profit for the company.

Many times I have second guessed myself after a customer advised me that they have taken a lower price from another contractor.

How about you?
 
I have been asked many times if I can do a job for less money, mostly to try to get the job in budget. I can always take some dollars out by changing the gear or fixtures from what is spec'ed. I love it when they do this since I only take out actual cost, leaving the mark-up and profit.
Never lower your price unless the scope of the work is lessened.
 
Most of the people asking for this find other things more imprtant in their bugeting process - like stone - high priced stone this or that, Cherry cabinetry rather than veneer, hardwood floors instead of pictures of wood, the best paint on level 5 walls - and they are looking for a sucker or suckers to everything they can't see behind the walls that they will hang a new $10k+ TV on, and sit and watch it drinking $50 bottles of wine as they write your punch list...
 
e57 said:
Most of the people asking for this find other things more imprtant in their bugeting process - like stone - high priced stone this or that, Cherry cabinetry rather than veneer, hardwood floors instead of pictures of wood, the best paint on level 5 walls - and they are looking for a sucker or suckers to everything they can't see behind the walls that they will hang a new $10k+ TV on, and sit and watch it drinking $50 bottles of wine as they write your punch list...
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True that man True that! Dont forget granite countertops that is a big one.
 
It happens in the engineering world as well. Every company I have worked for handled this situation in the same way. We go through the scope of work with the prospective client, get agreements on what tasks can be deleted, and only then do we lower the price.
 
No. My price covers my cost of doing business.

If they want a lower price, that would mean I can't pay for something, like my license or insurance.

Many times, the 'price' they have in their head is unrealistically low, usually because their information is far out-dated. Remember $1.50/gallon gas? $200/yr insurance premiums? 14/2 NM at $15/250'? An 75? stick of 1/2" EMT?
 
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e57 said:
Most of the people asking for this find other things more imprtant in their bugeting process - like stone - high priced stone this or that, Cherry cabinetry rather than veneer, hardwood floors instead of pictures of wood, the best paint on level 5 walls - and they are looking for a sucker or suckers to everything they can't see behind the walls that they will hang a new $10k+ TV on, and sit and watch it drinking $50 bottles of wine as they write your punch list...
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...And after 2-3 years in the house still have no furniture.
 
LawnGuyLandSparky said:
...And after 2-3 years in the house still have no furniture.
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Na... The jobs I'm ranting on about usually have paid someone a brain surgeons salary to choose furnature for them and money is no object in that reguard.... I'm sure I am not alone there - get beaten down in price - even fail to pay the remainder - and they just bought a Beemer for the Nanny, and shipped an Itialian and his tile in for for the mantel piece for three times your electrical contract.

An over bugeted blue collar guy with two kids and a working mother - sure.... They might live without this or that...

But a couple who happen to be Lawyers, on their 2nd or 3rd $1.5M or > home - like they will be doing without?!? YOU will be doing without....
 
e57 said:
Most of the people asking for this find other things more imprtant in their bugeting process - like stone - high priced stone this or that, Cherry cabinetry rather than veneer, hardwood floors instead of pictures of wood, the best paint on level 5 walls - and they are looking for a sucker or suckers to everything they can't see behind the walls that they will hang a new $10k+ TV on, and sit and watch it drinking $50 bottles of wine as they write your punch list...
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I was talking of commercial work. Sorry I wasn't clear.
 
chris500 said:
You have to remember, the first step in negotiation is to ask for more than you expect to get. If you get a sucker to bite, then too bad for them(you).
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Not really the way I operate but if it works for you.......
 
We have actually negotiated a lower price with a customer, depending his loyality and past record of payment. We simply reduce our mark-up on items like switchgear and the lighting package. We most always still make money on those jobs, and the customer is content that they got a good deal, and we are able to keep our electricians on the payroll for yet another project. If "Fly by night Electric" has given them a bid and they want us to compete, we just bow out gracefully and tell them good luck.
 
A customer can always ask for a lower price. Does not mean you have to accommodate his request.

In many cases there are things that can be done (or not done), or material substitutions that can be made that can accommodate a reduction in price.

Most of our long term customers understand that for our better customers there is not anywhere near the margin in a project that there is for customers who purchase less from us, so only rarely do we get requests to reduce the price. Usually, it is understood that any significant change in price is only do-able with a change in the job specs. Often times, the changes are not that significant that accommodate "enough" of a price change to suit the customer.

We often get specs that ask for something that a customer does not really want or need, but somehow it got in the spec. Sometimes these things are very pricey.

We have one customer that has a national contract and can get certain instruments at 49% of list price. The same company charges us 80% of list for the same exact instruments. We have them buy the instruments themselves and just ship them to us, and it saves them almost 40% on the cost of the instruments. Its a no-brainer.
 
e57 said:
Most of the people asking for this find other things more imprtant in their bugeting process - like stone - high priced stone this or that, Cherry cabinetry rather than veneer, hardwood floors instead of pictures of wood, the best paint on level 5 walls - and they are looking for a sucker or suckers to everything they can't see behind the walls that they will hang a new $10k+ TV on, and sit and watch it drinking $50 bottles of wine as they write your punch list...
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Your Clients or Lost Clients :rolleyes:

Oh I can't Wait for all the the Things "Business"!
 
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