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Negotiating after a bid

| Posted in Business on May 17, 2003 05:53am

Do you ever negotiate with the customer after you present the bid?  If they say “Ooh, that’s too  much” do you start talking or start walking?

 

Do it right, or do it twice.

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  1. srvfan | May 17, 2003 06:25am | #1

    Thats a bad idea.  If you bend one time the customer will expect you to bend every time.  Make firm price quotes and honer them.  That or add 50% to every bid you give.

    1. FastEddie1 | May 17, 2003 06:32am | #2

      That's what I thought.  But sometimes the bid is probably just over their budget, and that last 1% could mean the differenc in getting the job.  But then more often than not, it's probably just a ploy to see whho will blink first.  I guess the trick is knowing which situation you're in, and going from there.  Like when do you offer to use a less expensive material?

      Do it right, or do it twice.

  2. User avater
    JeffBuck | May 17, 2003 09:28am | #3

    Sure...the price can always go down...they just gotta say what parts to eliminate.

    Simple.

    We can usually fit into a realistic budget....just gotta start with the wants and end up with the needs.

    In all actuality..I will cut my price and take money outta my own pocket if I think they can make it wirth while. Recently did it for a nice young couple with 2 small kids....smallest home in an upscale neighborhood. Both worked good jobs.

    I saw Work friends. Neighborhood friends. Mommy and me friends. Daycare friends. And well off relatives.

    But like the old sales manager used to say..never give nothing for free. I told them up front I fully expected them to show the hell outta the place and brag about the worlds greatest carpenter they lucked into finding!

    That was 3 months ago.....so far....two very solid leads. They've been holding up their end of the bargain. Plus..they just called back to have their basement finished.

    They got a good deal...I got a good deal. Win/win. Plus....I judged them right and they were great clients. Nice to work with. Could be a great referal for the next 50 yrs. Kids were cute too....that helps.

    Jeff

    Buck Construction   Pittsburgh,PA

     Fine Carpentery.....While U Waite                  

  3. Edgar76b | May 17, 2003 11:27pm | #4

    I think what contractors want, is to stay in control of their schedule and also maintain safety and quality on their work. Because if you are doing the work, two things happen: You start running the show, because it's your house. You take 3 days to get done, what should have taken 3 hours and he has to wait for you to finish.   But it always comes across as "You are the customer the customer is always right"  WE aren't trying to take you for a ride. Even Though the the first 3 letters of contractor are con.

    When It comes to estimates, It can save you a lot of grief, if you are prepared. Dealing with some customers is a lot like thumb wrestling. And really, the way you handle each customer is different just like each job is different . But there are certain aspect of every job that you can control as well. By knowing, the way you do it. I guess thats kinda vague. It has a lot to do with qualifying the customer. Which means to me. Have them thinking about the choice you want them to make before the are forced to make it. That also means you need to know what your doing and how to talk to people.

    One way to qualify them is to ask them if they want a "Contract price." or a time and materials estimate. A contract price is always going to be a little higher. But it is a hell or high water price. It's Higher, So you don't get stuck. A lot of people don't like suprises. neither do I .

    Along with that goes the change of specs.  If they start getting out of hand, your going to lose money, but thats another thread.

     I had a sweet little old lady, who turned out to be a shark. Because she qualified me. It was my choice. But i didn't want to make her feel like her work wasn't good enough, for me. does that make sense? I fell for it. You got to watch these old people. LOL

    I had estimated a small $1500 restoration project for her. Then when I started doing all the little extra odds and ends, she needed done. cause she liked my work so much. I got behind. They were all little projects of course. Like," oh can't you take the scraps from this T 111 and replace my Barn Windows." She had it all planned I swear. I learned a hard one there. It took away from my regular schedule. It wasn't a big deal. but it threw the schedule out enough that the shortcuts. I had planned to make me profit and while keeping her price down. Went south, with the geese. By taking that extra hour out, It changed my plans. I don't know if i explained that well.  If it had been a T&M job I would have been OK.

    In other words I could only charge her for an hour, for that barn window thing, but it cost me about 2. because It was in-efficient. If I would have been asked to come back to do it later. I probably wouldn't have. Because I was already busy and It wasn't worth cutting in to a day. If  I am going to drive to a job, and drive Home from a job. I want 8 hours in between at least.  

     According to my estimated price, Which i am very good at by the way. ( getting done what I plan) . The customer gets the advatage of my competetive price because, I know how long it takes me to do things. I may be older, but I  am wiser and a job is only worth what it is worth. thats what they need to believe about you.

     Over the course of this job.I ended up going to the lumber yard 3 times instead of one for various other small things. Because of changes. That is time they don't see. Which I would charge for in a time & materials job. Yet, if I would have given her an estimate for all of it, I would have been to high. Give me all the details at once if you want a good price.

    If the customer says they think its too high. and I have given them the honest, bending over backwards estimate already. I say," well maybe you think, you would make out if i give you a time and materials estimate. But be advised, it still may be that high." There can sometimes be suprises which you won't Know. (You Don't know, for sure. But ,you should be prepared for the possibility & so should they ) You should be thinking ahead about what happens if they run out of money. Where is a safe place to stop, if they can't afford it any more. Time and materials estimates always cost the customer more. But sometimes it makes them feel in control. And they need to understand that time is money to you.

     Alot of customers not only know what they want to spend. They have already figured out what your costs are . They think they can brow beat you into do the job for nothing. When I have a customer like that I give them a time and materials Estimate. ( if I want the job that badly ) and I take my time. But If they want to help, thats fine. It gets tricky, when you must wait for them.

    Where there's A wheel there's a way, got any wheels?



    Edited 5/17/2003 4:47:16 PM ET by MuleSkinner


    Edited 5/17/2003 4:59:31 PM ET by MuleSkinner



    Edited 5/17/2003 9:35:43 PM ET by MuleSkinner

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