Sound Familiar? (Pricing information)

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electricguy said:
3 percent over budget, how about If the contractor gives the customer the discount and say well i can do this but we will have to install standard devices and not decora If you give something the customer has to give something up.
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I think this approach is probably the best.
 
hardworkingstiff said:
...what would you do?
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I'd be willing to see where we can shave 3% of product out of the scope of my work.


I've ran into that type customer before...I stand firm and ask them what they are willing to drop to match their budget. Some are willing, some are not.

Those that are not willing to shave 3% of the electric are "encouraged" to find that 3% elsewhere....usually in their finishes in bathroom and/or kitchen. Tile and counter tops are actually quite expensive :wink:


I don't lower my price - I learned that lesson years ago.
 
electricguy said:
3 percent over budget, how about If the contractor gives the customer the discount and say well i can do this but we will have to install standard devices and not decora If you give something , the customer has to give something up.
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d60e40fa.jpg

The difference between a Decora and a standard is about $3
 
hardworkingstiff said:
How many are willing to let a job go instead of taking a 2%-3% reduction in price? In other words, if a customer said "You are the 1st price I've received, and you are 3% above my budget. If you are willing to cut your price by 3% I'll sign your contract now and not get another quote", what would you do?
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let's look at this from a real world, small contractor, perspective...

Here is the typical math of a small contractor...

labor - $500
Material - $500
Total Cost - $1000
OH + Profit (10% +10%) - $200

total job $1200 (with $100 in profit figured in)

Now...in their head, they are making 10% profit...

Customer says you are 3% over budget...You drop 3% off your price.

$1200 * 3% = $36

New job price is (1200-36) = $1164...

whats the big deal, right?

well...you had 10% profit originally, correct?
and you have 10% in for your OH, right?

what do we have now....

$1164 * 10% = $116.40 (overhead at 10%)

this leaves you
$1164 - $116.40 (OH) - $500(labor) - $500(materials) = $47.60

or a total profit of 4.1%

that's if everything goes perfect.

So, before you drop anything...make sure you know what your margins really are...
 
electricguy said:
.... the skinny of it is Lets stay in control and not have the control in the customers hands. :)
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Agreed.


Everyone wants a shiny new Cadillac

Cadillac-XLR1.jpg



Some can only afford a 300:
chrysler-300c-2006-20060516045525566.jpg



Some less:
1995.ford.aspire.3638-396x249.jpg





It's funny how some of these people will drop tons of money on a car (liability)...while scrimping on their home (asset).

It is equally mentally challenging to try and determine if the Aspire driver is really a Caddy driver in disguise :smile:
 
macmikeman said:
Same goes for a lot of doctors. Too many of them charge by the hour, and price themselves according to what other doctors charge for the same thing.
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I thought doctors charged by the square foot.
 
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