View Full Version : Billing error.. What do I do?
1BadHawk
06-10-2005, 04:14 PM
Im doing a lawn renovation for a property of 1200 sq ft. along with mulch installation. The original estimate has everything involved, materials and labor, listed and priced. The total should be 1160.00 , but the software (excell) spreadsheet I used, did NOT add all the subtotals, omitting one item at a cost 350.00. Therefore the total listed on the estimate is 790.00. Like I said, everything is listed, broken up into catagories with sub totals and then a grand total.
What do you think I should do. Bring it to the customers attention, explain that its was a software mathamatica error, and ask for the correct amount?
Im doing a lawn renovation for a property of 1200 sq ft. along with mulch installation. The original estimate has everything involved, materials and labor, listed and priced. The total should be 1160.00 , but the software (excell) spreadsheet I used, did NOT add all the subtotals, omitting one item at a cost 350.00. Therefore the total listed on the estimate is 790.00. Like I said, everything is listed, broken up into catagories with sub totals and then a grand total.
What do you think I should do. Bring it to the customers attention, explain that its was a software mathamatica error, and ask for the correct amount?
You can explain it to the customer but I doubt they will give you the difference. The customer selected you biased on what you quoted.
Not sure how far you are into the project but can you bring back the materials and eat the time your already have in the project? Would it be cheaper to just stop working on the project vs. keep going if the customer doesn't give you the difference?
Looks like you learned a lesson to recheck your figures manually. Spreadsheet software is only as good as the person who sets up the calculations. It could have been a whole lot worse.
1BadHawk
06-10-2005, 04:50 PM
The project is finished (today). Eating the cost would mean making $14hr at the screwed up price, or $35 hr for the correct price. Id hate to eat the whole thing, and thought about bringing it to her attention and see what her reaction is, and based on that then offer to split the difference with her if need be. Taking the loss completely would be a real bummer since Ive probably got about 20-25 hours in on this job.
What would you all do?
rgjlawn
06-10-2005, 05:32 PM
The project is finished (today). Eating the cost would mean making $14hr at the screwed up price, or $35 hr for the correct price. Id hate to eat the whole thing, and thought about bringing it to her attention and see what her reaction is, and based on that then offer to split the difference with her if need be. Taking the loss completely would be a real bummer since Ive probably got about 20-25 hours in on this job.
What would you all do?
EAT IT :cry:
mastercare
06-22-2005, 03:51 PM
I like your idea of splitting the cost with her. Explain that there was an error ,and show the original estimate. Show that the numbers don't add up. Explain that you don't think ti would be fair to ask her for the full difference even though it is separated into the correct amount. And, since its your error, you wouldn't think of asking her to pay that much difference from the total, but I'd be willing to split the difference with you. Please understand that I'm actually losing money on this, and only want to recover the cost of some of the materials I quoted you for.
Try it. If you ask for all of it and they say no, you won't have much luck asking for part of it. Appologize over and over, and try to make yourself look like the hero by not asking for the WHOLE $ amount of the mis-calculation.
Good luck to you.
daveintoledo
06-23-2005, 09:32 AM
they will think you are dishonest, or inexperienced...... either one is not good...... id explain the mistake, let them know what happened, and that i am going to stick to my agreement since i am an honest man, they may offer you the difference, but even if they dont, you will improve the image of your company
Dogbonz
06-23-2005, 05:49 PM
they will think you are dishonest, or inexperienced...... either one is not good...... id explain the mistake, let them know what happened, and that i am going to stick to my agreement since i am an honest man, they may offer you the difference, but even if they dont, you will improve the image of your company
Ditto! :cry: :p :o :mad: :drinkup: :drinkup: in that order!
lawnservice
06-23-2005, 07:35 PM
you got everything itemized with the correct sub-totals and just the grand total got screwed up?
then i'd just say 'oopps, look what happened'
thats an honest approach (at least nothing dishonest about making a mistake)... explain the situation and collect the funds
to let it go would then make you look like an idiot. i mean if the homeowner does her own math (which I'm sure she did) she will realize the error in the grand total....and for you to say nothing, in my opinion, makes you look foolish, inexpereinced
dvmcmrhp52
06-23-2005, 07:53 PM
Im doing a lawn renovation for a property of 1200 sq ft. along with mulch installation. The original estimate has everything involved, materials and labor, listed and priced. The total should be 1160.00 , but the software (excell) spreadsheet I used, did NOT add all the subtotals, omitting one item at a cost 350.00. Therefore the total listed on the estimate is 790.00. Like I said, everything is listed, broken up into catagories with sub totals and then a grand total.
What do you think I should do. Bring it to the customers attention, explain that its was a software mathamatica error, and ask for the correct amount?
Bottom line..........the customer looked at the total and made a decision based on that, going back and trying to correct that mistake at this point will most likely prove to be futile.
I would explain the mistake and note the initial reaction to it,(the initial reaction will be the most telling) with the expectation that they would be paying the total originally quoted on the bottom line,........if they "understand" and are willing, you may get more..........
Alway double check..............
CoastalGreenscapes
06-23-2005, 08:27 PM
Chalk it up to experience and move on. You'll have to eat that one. Maybe you can generate some referrals to make up for the loss.
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