View Full Version : Lesson of the day
George777
04-19-2001, 06:55 PM
Got a call yesterday for an estimate. My partner and I roll over and figure about 35.00 per week. The problem was that the customer was not at home and she told me to call her cell phone with my price. (1st mistake) I called her back and she agreed on the price.
We scheduled her for today and so we roll in about 0900. She started telling me what she wanted done. (2nd mistake) We did the job and it took 3 hours for 35.00
My lesson learned is this:
1. I will never give a price over the phone without meeting the customer. So that they will know exactly what they will get, also I can sense their attitude. If I feel I’ve got a knit picker my price has just jumped up.
2. I will never allow a customer tell me what I will do, after all who’s business is it. We hedged for over 1 hour. I realize that ya got to use common sense, but knit picking forget it.
3. I should have told her that what she is talking about is an add on service and that this service will cost her 100.00.
Well we live and learn and I think I will remember this one. Now that her property is squared away, next visit will only take about 25 minutes. She will produce about 140.00 a month. I can use every customer I can get at this stage in my business.
Maybe when I get a large customer base I can replace those who display a knit picking attitude. What are some of your feelings about this?
Skippy
04-19-2001, 07:01 PM
Jeez George, Hard way to learn a lesson, but thanx for putting it on. It's a lesson learned for me too, but at a cheaper cost. Better luck next time.
I'm sure we have all been there at one time or another. I wouldn't beat yourself up over this. Move on, and better luck next time.
65hoss
04-19-2001, 09:27 PM
Been there done that too many times.
John DiMartino
04-19-2001, 09:36 PM
You guys took it bad-that job cost you lot of money.I dont know why you accepted only 35 for 2 men and 3 hrs-that waa another mistake.I notice a lot of people dont call you until there lawn/yard is out of control-then they gulp when you tell them it will be 4x the mowing charge to get it in shape.On my commercial sites,there is no trash pickup all winter,and a fence all around to contain the trash/leaves.I spend 2 days,2 men sucking trash,and leaves from fence lines with my trac-vac.The first time I did this,I didnt have the vac-and I learned the hard way.
NateinAtl
04-19-2001, 09:47 PM
That's too bad. But join the crowd. I have done a few jobs where I didn;'t make any money. renting equipment and paying labor, and dumping fees. If it is possible, try to put in place a spring cleanup for your first visit. If you don't, there will be customers that have you do everything under the sun and then drop you after two visits. I promis this happens a lot. A new customer will call, you agree on a weekly price thinking they will stay with you for a while. They ask that you get the pruning, weeds out of the beds, etc. on the first or second visit. Everything looks good and you think it will be a breeze from there on out and BAM,,, they call and cancel. There are peolple like this out there. It's good of you to share that story here so that all the new guys can learn from it. Sorry.
jasonp
04-19-2001, 09:49 PM
Live and learn thats all you can do. You will remember it the next time to tell the customer the price you gave was for this and this rather than this,this,this, and this. We all have done it, I know I did when I was in a great need of customers.
George777
04-19-2001, 09:49 PM
John DiMartino, you are right. I think these lessons help prepare you for what to do in the future. I bet everyone in this business has at one time or another done the same thing.
Currier
04-19-2001, 10:06 PM
It's kind of one of those deals. You want the customer($$) You give what you think is a fair price then lo and behold the lawn turns and bites you on the rear! You figure you'll learn from that one so the next time you raise your price and don't get the customer...another lesson learned! next time you lower your price and ...3 hours later... BUT somewhere in there, after a while, you will get it right. Eventually you get it right more often than you get it wrong and that is a happy day!
jason2
04-19-2001, 10:23 PM
I am in my second year and still building my customer base. I've had a lot of this happen to me. I tend to get overly optimistic and excited about new customers. I think to myself, "Great! New customer, I gotta sign 'em." So I bid a fair price and forget about the details it takes to get a new yard in shape. It always ends up biting me in the *ss.
I am slowly learning. But when you are the new fish in a pond full of competition, the customer can be tough to land.
Once I plant the measuring wheel on the new yard, I hand the customer a couple of referral letters and get to estimating.
If I land the job, either one of two things happen. One: I estimated properly and everything works out according to plan. Or two: I miscalculated time or forgot to figure in something which leads to working at a loss.
Tuesday I spent 8 hours at a new commercial cleaning a winter's worth of trash. I hadn't figured that into the bill. I ended up going out and buying a hand held vac/blower, otherwise it would have taken a lot longer. At least I have a new toy, and the lesson learned is valuable.
Hoping that my brain will start working a bit better in the future.
jjfehr
04-19-2001, 10:24 PM
TRIPPLE 7
I think that I found your third mistake!! You said you should have bid the job at $100. You said the job took you and your partner 3 hours. I don't know about your neck of the woods, but in mine $16.67 gross/ man hour would not cut it. The min. for me doing anything that I can do and the other person wants to pay me to do it is $30/ man hr. The exception to this rule is my parents and some elderly folks(the ones that appreciate what I do for them and don't complain) We will all, with any luck, be old some day so I try to do what my business can afford to help them out a little here and there!
Most of us have learned that lesson at one time or another. I refuse to give estimates over the phone- A lesson that I also learned!
Barkleymut
04-19-2001, 10:32 PM
Don't look at this as all bad, yes you worked for too little money but you may have picked up a customer for life who will bring in over $2K per year. Also this customer has friends and family and may tell them what wonderful work you do. But from now on charge accordingly.
eslawns
04-20-2001, 12:25 AM
Also this customer has friends and family and may tell them what wonderful work you do.
and neighbors. Keep your truck in front of people. The work will come. Be glad you learned this on a $35 job that should have been $150, and not a $3500 job that should have been $10k, and nearly bankrupts you.
vBulletin® v3.8.6, Copyright ©2000-2012, Jelsoft Enterprises Ltd.