Service call New Electric dryer How much

[iwire]

There is nothing wrong targeting customers that have money. Of course you want customers that have money. We target these type of customers as well. This was not not my debate.
My debate was, our pricing will not go up or down on our perception of what people have or own.
Our pricing is the same if you own a $80,000.00 home or a $2,000,000.00 home.
Our pricing is considered high to some, but all pay the same.

That is your choice and perfectly acceptable one.

I don't normally see the customers homes, I see the businesses and we adjust accordingly.

 

[jmsbrush]

That is your choice and perfectly acceptable one.

I don't normally see the customers homes, I see the businesses and we adjust accordingly.

Bob with that statement and what I know of your work, you are primarily in the commercial and industrial side of our industry?
Are you running a service department?

When we bid jobs that are commercial or industrial like an Oliver Garden or a Waste Water facility for the county, we are typically turning in a competitive bid.
After labor, material and overhead are accounted for, we typically figure out how much profit we would like to make.
Unfortunately because of the times, we do not make the profit that we would have made four years ago.
Now I'm just asking, how can you base your price on what your perception of how much money the company has and win jobs?
In my example of the Olive Garden and WW facility, I know both companies have money and can pay the bills but in this market its hard to win jobs.

 

[kwired]

There is nothing wrong targeting customers that have money. Of course you want customers that have money. We target these type of customers as well. This was not not my debate.
My debate was, our pricing will not go up or down on our perception of what people have or own.
Our pricing is the same if you own a $80,000.00 home or a $2,000,000.00 home.
Our pricing is considered high to some, but all pay the same.

That is how it should be and it is fair. It is none of my business how much money a customer makes. Their ability to pay is another issue outside of how much it cost to do a particular job.

You don't get charged more or less by other businesses for their products or services (well most of the time anyway) because they know how much you can afford to pay.

 

[nhfire77]

Good for you.

My pricing will vary based on my mood, the customers attitude and where they live.

Agreed, and I would add what they appear to be able to tolerate in the wallet.

I landed a job cleaning up the spec renvoation hackery on a 2.5 million dollar house on a beach. I added 25% to what I would normally charge. The guy didn't blink at my price and paid without so much as a second opinion. No references, just handed over the $. Was it a gamble, yes. Did I win, yep. And I will do it again, and I will not get some of those jobs. But, I won't have to work as hard to make more money in less time. That is priceless

 

[LEO2854]

Agreed, and I would add what they appear to be able to tolerate in the wallet.

I landed a job cleaning up the spec renvoation hackery on a 2.5 million dollar house on a beach. I added 25% to what I would normally charge. The guy didn't blink at my price and paid without so much as a second opinion. No references, just handed over the $. Was it a gamble, yes. Did I win, yep. And I will do it again, and I will not get some of those jobs. But, I won't have to work as hard to make more money in less time. That is priceless

Thats the way it should be:grin: next time go for %50

 

[Dom99]

I asked a few managers of a major convenience store chain why are gasoline
prices this chain substantially different within a 7 mile radius. They all said the same thing, "we price on what the market will bear".

 

[jmsbrush]

I asked a few managers of a major convenience store chain why are gasoline
prices this chain substantially different within a 7 mile radius. They all said the same thing, "we price on what the market will bear".

We do not sale gasoline, we sale service.

 

[wptski]

So, what happens if a elderly person living on social security calls one of you guys about a electrical problem in their modest home, do you accept the job and charge much less or decline the work?

 

[macmikeman]

So, what happens if a elderly person living on social security calls one of you guys about a electrical problem in their modest home, do you accept the job and charge much less or decline the work?

Do you think that is fair of you to even try to put up to answering this question? How about this- does the city where the "elderly person" live give them a break on the property taxes? Or does the nursing home make it cheaper for the elderly customers? Do they get discounts on postage stamps from the US postal service? Is the gas they put in their car cheaper due to their advanced years? How about their electrical bill? Or heating charges? Why must electricians be different than all the ones I just mentioned? Are we known as "A bunch of nice guys" or something? (I can't tell from all the whining I hear when I give "younger" customers the billings....

 

[LEO2854]

So, what happens if a elderly person living on social security calls one of you guys about a electrical problem in their modest home, do you accept the job and charge much less or decline the work?

Give them a break that is what i would do.

 

[LEO2854]

Do you think that is fair of you to even try to put up to answering this question? How about this- does the city where the "elderly person" live give them a break on the property taxes? Or does the nursing home make it cheaper for the elderly customers? Do they get discounts on postage stamps from the US postal service? Is the gas they put in their car cheaper due to their advanced years? How about their electrical bill? Or heating charges? Why must electricians be different than all the ones I just mentioned? Are we known as "A bunch of nice guys" or something? (I can't tell from all the whining I hear when I give "younger" customers the billings....

That is all up to you . I like to give those who could use a break a break.

 

[LEO2854]

The average House around here is $500,000.00,. QUOTE]

Leo, what does this have to do with your pricing?
Are you basing your prices on your perceptions?
If they have money.
Nice cars in the driveway.
A women
By race.

This is a very high cost of living area and those who just bought have the money to pay top dollar..

In this area there blue coller people as well they will get a break in price.

Drive a round a high end area and you will see gas is 10-20 cent's higher.

 

[macmikeman]

That is all up to you . I like to give those who could use a break a break.

Me too, but when those who do not run their own business's come in with that tack I get miffed. Charity comes from within somone's heart, not an expected entitlement that some seem to demand from electrical contractors. How's this- I want to do some discounting for the senior citizens of the county, but I cannot afford it so I will be force taking a chunk out of each of the paychecks of the men in my employ (ok, in my case I gave them up 20 years ago, but thats beside the point...) to fund my great idea. Now how well is that going to go over?? What, suddenly generosity doesn't sound so great after all does it........

 

[LEO2854]

Me too, but when those who do not run their own business's come in with that tack I get miffed. Charity comes from within somone's heart, not an expected entitlement that some seem to demand from electrical contractors. How's this- I want to do some discounting for the senior citizens of the county, but I cannot afford it so I will be force taking a chunk out of each of the paychecks of the men in my employ (ok, in my case I gave them up 20 years ago, but thats beside the point...) to fund my great idea. Now how well is that going to go over?? What, suddenly generosity doesn't sound so great after all does it........

I agree it's all about whats in your heart

 

[nhfire77]

So, what happens if a elderly person living on social security calls one of you guys about a electrical problem in their modest home, do you accept the job and charge much less or decline the work?

If it is truly an elderly person with limited income, then of course I discount. Especially if its a safety issue. I might be taken advantage of, maybe they're rich. Oh well.

Most businesses offer a senior citizen discount, that's a no brainer. 1st off, helping an old woman out is priceless advertising, and its the right thing to do.

Changing pricing based on the customers ability to pay/income level is not the norm, most everyone gets the same rates. When there is a special situation, you apply special rules.

 

[iwire]

If it is truly an elderly person with limited income, then of course I discount.

Why?

Mike said it well here.

How about this-

does the city where the "elderly person" live give them a break on the property taxes?

Or does the nursing home make it cheaper for the elderly customers?

Do they get discounts on postage stamps from the US postal service?

Is the gas they put in their car cheaper due to their advanced years

How about their electrical bill?

Or heating charges?

Why must electricians be different than all the ones I just mentioned?

Being elderly does not mean you are poor or stupid.

 

[electricmanscott]

So, what happens if a elderly person living on social security calls one of you guys about a electrical problem in their modest home, do you accept the job and charge much less or decline the work?

I do and I have. Depends on what I think the situation is.

 

[electricmanscott]

You don't get charged more or less by other businesses for their products or services (well most of the time anyway) because they know how much you can afford to pay.

Contracting is not like most other businesses and as such you can't compare ones method of operation to another. You can't go into the grocery store and haggle over a gallon of milk. Yet most people feel it perfectly normal to haggle with contractors. Why that is I have no idea but it's just the way it is.

 

[iwire]

Bob with that statement and what I know of your work, you are primarily in the commercial and industrial side of our industry?

Are you running a service department?

Service and smaller projects for a large EC.

Now I'm just asking, how can you base your price on what your perception of how much money the company has and win jobs?

Obviously right now the economy sucks and to win bids is tough, but while working out in my head how much profit will be added to the costs the customers ability to pay is in my mind. I cannot follow other bidders to the bottom.

I really do not want to elaborate on the companies business too much but I will say that the bids I put out have been as high as $375,000 to as little as maybe $1000.00 and I am often successful. Both in winning the bid, making money on the job and customer satisfaction.

 

[jwjrw]

Obviously right now the economy sucks and to win bids is tough, but while working out in my head how much profit will be added to the costs the customers ability to pay is in my mind. I cannot follow other bidders to the bottom.

I actually raised our rates and started focusing on providing the best customer service and the way I sell work. I still get much of what I bid and customers are very happy to pay what we charge

I really do not want to elaborate on the companies business too much but I will say that the bids I put out have been as high as $375,000 to as little as maybe $1000.00 and I am often successful. Both in winning the bid, making money on the job and customer satisfaction.

I can usually tell when someone wants the cheapest price. That's not the class of customer I target now.