User: jmellc, Location: Durham, NC
Asked on: Tuesday, March 15, 2011 at 11:58 pm EDT
Answered on: Tuesday, May 14, 2024 at 2:52 am EDT
Question: 2 major irritations last week. Scoped a job at a local motel, refeeding ckts with photocells & new ckt for new sign being ordered. Looked it over well, walked job with mgr & maintenance man, they liked the plan. Worked up a price that night, took it to him next day. He then wanted price just on new sign work. I figured that as we sat. He said he had a meeting Sun with other partners, would call me Mon. Asked if room to negotiate. I said no, he had my rock bottom price. Still no word from him. I figure he's getting other quotes or maybe "sweating" me a few days, planning to call & offer me 10% less or claim a lower bid came it, could I match it? Bad as I need the work, I don't play those games. If he claims a lower bid, I'll tell him to call that EC with my blessings. If I beat the other bid, he'll call him & ask him to come down, etc. Race to the bottom.Out of town owner called, asked me to look at problems with a rental house. Tenant had taken down a light to check it out, couldn't find problem, needed receptacles here & there, etc. Looked things over, took 2-3 hours finding routes from basement to rooms in question, etc. Called him with prices. He didn't want to pay me to put the light back up that someone else took down. Wanted the receptacles, but not as many as at 1st, too expensive. Could we do it this way or that way & save $? He was pretty sure we could do this & that, etc. I said "since you have a plan, you don't need me. Goodbye" Practically came down to wanting me to coach him & the tenant as they did the work. I know $ is tight, I've been starving. But he has a 2 story house, rents upper floor to nice family, finished basement to some roommates & the garage to a car buff with a classic car. They take good care of property. I'm sure he brings in a decent rent but he cries poor & wants to pick me to death.I've always tried to keep a policy of not charging to look things over & price a job. Most good contractors did that in my neck of the woods. But I'm close to charging a service call on some of these cases, especially if I have to open boxes, check devices, measure basements, etc.In the motel case, I know a lot of guys, in several trades, who add $100 to the bottom line & come down $100 if customer wants to bargain. I figure that would make me look a little shady, that I figured the $100 as loot if I didn't get asked about price. I just don't like doing that. But I might start saying, "yes I'll come down $50 if you pay in advance". Or if he calls after a few weeks, say "I can no longer do it for that price." Conditions have changed & it's now $100 more forthe job."I may seem cynical & grumpy but I'm tired of being suckered by people wanting to save $ at my peril.
Motel Job
Understandably frustrating that the manager has not contacted you after requesting additional quotes. Stick to your price and avoid negotiating unless the client can provide tangible evidence of a lower bid. Charging a service call for site inspection and estimating may be a viable option to cover your time and expenses.
Rental House Job
It is reasonable to have a no-charge policy for site inspections, but you should consider charging for extensive diagnostics and consultation. Politely declining the job due to unrealistic client expectations is justified. Offer a solution to the light replacement issue, such as providing the part number and instructions for the tenant to handle themselves.
Alternative Pricing Strategies
Offering a discount for advance payment can incentivize timely payment. Adjusting pricing based on changes in conditions (e.g., increased material costs) is fair and transparent. Consider adding a labor multiplier for additional services, such as extended consultation or diagnostic work.
Overall: It is important to value your time and expertise. Communicate your pricing policies clearly upfront. Be willing to negotiate in good faith, but avoid engaging in price wars or unethical practices.* Set boundaries and maintain your principles to prevent exploitation. Flag for review