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View Full Version : I gave money back to the customer!


DynaMow
04-10-2006, 11:27 PM
OK heres the deal. 5 days ago I do a mulch quote I figure 6 yds of mulch, 200 linear feet for cut bed edge, small cleanup basically leafs in 2 beds just around plantings. So when I am leaving I see another guy pull into home and walk property. Young guy, nice house($350,000), nice hood (I do not have a presence in yet, my city)

So I pull back into the driveway, get out of my truck and told him to get off my customers property and punched him in the face, No I'm just kidding (another Thread).:laugh:

Anyways this is what I quote, I figure 7 yds of mulch ($385) , think he needs 6 I always add 1 yd, 200 linear feet for cut bed edge ($100), small cleanup basically leafs in 2 beds just around plantings ($80).
CUST: didn"t know wife was getting quotes and this other guy is charging $40 per yard mulch installed, what are you asking for by yard?
LLL: $55 per yard for the best lookin mulch you can get, show him sample (yes I carry samples of mulch in little plastic tubs, sell the best, be the best) How many yards is he figuring?
CUST: 12 yards. LLL: (SheShovel I was proud of myself, another thread) Guarantee you do not need more then 7 yds. He was probably figuring that front bed, which I knew wasn't yours by the type of mulch in it, and he is trying to sell more yds, how do you know how many he is using?
CUST: Then whats your other $180 for?
LLL: I have to get those leafs from around the plants & shrubs, and all those beds are going to be re-edged. Must be, and if you ever want that mulch to stay in that bed there, I will need to build a wall around that one side (heavy slope).
CUST: Me and the wife have been talkin about that, you do that?
LLL: Oh yeah.
CUST: Do the mulch and get me the price on that wall. When can you start?

I start today, get 5 yds of mulch (all I can carry, 1 load). 5.5 yds is all it needed. I couldn't beleive it. So I invoice him, give to wife for 6 yds @ $55.00 per. Showed him that I came in $55 under quote. Wife gave me high five, and says lookin forward to getting that wall done.

Now why in the world would anybody ever do that?
BobbyGedd I already know you do not agree with this.

wacamaster
04-10-2006, 11:56 PM
No you can't do that. You placed your bid at a flat rate.. you don't need to tell them what you are charging per yard. You can't charge them with two bids.. flat rate and price per yard... you'll be giving them money back when you come in under and having people ***** and moan when you come in over. Lose Lose situation.

HOOLIE
04-11-2006, 12:13 AM
Yeah Craig better hope Bobby doesn't read this thread :hammerhead:

Now in your other thread you said you felt you still leave money on the table...so when you make money don't give it back!!!!!!

DynaMow
04-11-2006, 12:16 AM
"Yeah Craig better hope Bobby doesn't read this thread"

He is going to come to Ohio and beat me with his shovel!

why do i feel that this will pay off on this customer in the long run?

sheshovel
04-11-2006, 12:18 AM
I dunno how that other guy fiqured 12yds when it was an obvious 6..1/2 the amount he estimayed for..the only thing I can fiqure is he must be lieing about how much he actually applies compared to how much he bills the customer for.
Most customers don't know how much a yard is.
So I say you did the right thing...you were only off by 1/2 yard...you thought it needed 6- you estimated 7 and it took 5&1/2.
Pretty good going.Customer happy cuz you came in under price..this always makes for a win win situation...that is a main goal..make your customers happy while still making a buck...

DynaMow
04-11-2006, 12:23 AM
Crap I forgot another thing (I am an idiot) I got his lawn maintenance too.

firelwn
04-11-2006, 02:36 AM
You made them happy sound like you may have a customer for life. About the part about you giving money back I do it all of the time but when I under estimate I cant go to them and ask for the money, even though some would be ok with this NOT MANEY. Its just a part of the buisness you have to be good at estimating your work thats All there is to it.

bobbygedd
04-11-2006, 08:32 PM
craig craig craig.....never, EVER quote a mulch job, "per cu yd". i'll tell you why: as a pro-fesh-ion-al, you need to be able to measure the beds, and figure out how much mulch you'll need. if u measured, and came to the conclusion that u need 6 yds, then, by all means, charge them for 7, but don't quote the job as "7 cu yds @ $75 per yd." no way. simply quote it as, "mulch beds, $xxx amount." because, if by some chance some day, you measure wrong, and u originally quoted 7 cu yds, and it came out to 10, you'd be expected to eat the loss. all mulch jobs should be quoted as EX: "mulch beds , front + side = $700." this way, if the mulch guy scooped you a nice load, u make out. if not, you still make out

gqnine44
04-12-2006, 05:58 PM
craig craig craig.....never, EVER quote a mulch job, "per cu yd". i'll tell you why: as a pro-fesh-ion-al, you need to be able to measure the beds, and figure out how much mulch you'll need. if u measured, and came to the conclusion that u need 6 yds, then, by all means, charge them for 7, but don't quote the job as "7 cu yds @ $75 per yd." no way. simply quote it as, "mulch beds, $xxx amount." because, if by some chance some day, you measure wrong, and u originally quoted 7 cu yds, and it came out to 10, you'd be expected to eat the loss. all mulch jobs should be quoted as EX: "mulch beds , front + side = $700." this way, if the mulch guy scooped you a nice load, u make out. if not, you still make out

Amen! You should stick with the price you quoted. It was a good day for you. You should have just enjoyed the bonus.

Bkeyes2
04-12-2006, 06:41 PM
Sometimes I estimate high just to return 50$ so they feel it was a deal.

DynaMow
04-12-2006, 11:36 PM
Bobby I agree, and thats how it started, the bid was total not itemized. Once he told me what the other guy was saying he was charging ($40 per) I had to answer his objection, which I knew I could.

Now for the rest of you nay sayers, get a beverage and comfortable, make sure you take notes. Ready?

I was able to show how other services can act, how I do business with integrity and honesty. Not to say blow their minds, how many other companies have done that for them before. Then showed the highest quality job you could ever receive. This guy has more projects. And now I have a customer for a nice long time. In a new neighborhood in my city, as nice as it gets $300 - $500 still new houses being built. The hood where they walk their dogs, kids play together, neighbors all talk amoungst each other. Now I gave this customer something to talk about to their neighbors, especially when they mention how great their yard looks. Also when I was there performing my brilliant work, the next door neighbor had a large (crappy) company, mowing their lawn. Plus they needed updated mulch. I am working on getting that guys mulch and I guarantee next year that lawn will be mine too. I will get my measly $55 back many times over.

I promise you anytime anybody mentions lawn work to this guy, he says "I got a guy for you"

Your welcome

br549oicu8
04-13-2006, 01:09 PM
You did the right thing I don't care what the others say....chalk it up as the best and cheapest advertising you have ever done.
Customers want HONEST professionals and you proved you are in that category. NOW you are trusted by them and everyone THEY TELL!!!
Smart move...3 thumbs up!!!
Buddy

AL Inc
04-13-2006, 09:13 PM
I look at it this way...if I hit a home run on a job, I'm not saying anything or giving any money back to anyone. Just makes up for the jobs I have underbid and lost my ass on.

Splicer
04-13-2006, 09:36 PM
I look at it this way...if I hit a home run on a job, I'm not saying anything or giving any money back to anyone. Just makes up for the jobs I have underbid and lost my ass on.
So you are screwing innocent customers that had nothing to do with your underbidding...Good business practice you have there:rolleyes:

gqnine44
04-13-2006, 11:00 PM
So you are screwing innocent customers that had nothing to do with your underbidding...Good business practice you have there:rolleyes:


He's not screwing them...the customer agreed to the price and must feel that the work is worth this agreed upon amount.

Lawn DOG
04-14-2006, 01:32 AM
I'm confused. Maybe it's time to retire. After laying a couple hundred yards of mulch this spring I must have it all wrong. Somebody give me a high five or i'm gonna quit.

DynaMow
04-14-2006, 08:51 AM
I'm confused. Maybe it's time to retire. After laying a couple hundred yards of mulch this spring I must have it all wrong. Somebody give me a high five or i'm gonna quit.
more then 1 way to skin a cat.

Turf Dancer
04-14-2006, 09:07 AM
I believe in being honest even if that means not making an extra few dollars. Of course I rarely do mulch jobs unless it is part of an annual contract on a commercial property. The few I have done are time plus materials that is the way it is. If I buy 6 yards then I charge them the 6 yards and I bill for the time starting when I head to pick up the mulch until I am done writing up the bill. I don't mark it up alot. I only get a $2 per yard dicount over what the homeowner would pay so I guess I make a whole $2 per yard. :clapping:
I think the last one I did was 3 yards and I think the total bill was $183

topsites
04-15-2006, 05:55 AM
I dunno how that other guy fiqured 12yds when it was an obvious 6..1/2 the amount he estimayed for..the only thing I can fiqure is he must be lieing about how much he actually applies compared to how much he bills the customer for.
Most customers don't know how much a yard is.
So I say you did the right thing...you were only off by 1/2 yard...you thought it needed 6- you estimated 7 and it took 5&1/2.
Pretty good going.Customer happy cuz you came in under price..this always makes for a win win situation...that is a main goal..make your customers happy while still making a buck...

Personally, if I hand spread I can make 1 yard cover around 350 square feet but with a rake it's closer to 175 square feet, and if I spread like most people do, it would hardly cover 90 square feet - So the coverage / cube depends on how thick you spread it, likely the guy delivering and spreading for 40 / cube does a quick job meaning he doesn't have time to think about the spread or the thickness. As for me, I do mine for $45 / cube but it's closer to 55 or 60 for hand spread because that's a real pain to do.

As for giving money back, sometimes when I come in way under I do that but they are right: Win some and lose some, if you give money back when you win, then you always lose.

As for the bit about feeling lucky, I've felt that way before, sometimes I still do.
Nowadays my excitement is unfortunately governed by experience.

AL Inc
04-15-2006, 07:28 AM
Splicer- I don't understand how it is "screwing" the customer by doing work for an agreed upon price. Because I don't give money back? That is pure insanity. Say what you want about my business practices, but I'm still here after 12 seasons. Do some research and see how many small buinesses make it to the 10 year mark. Keep giving refunds to people, I've seen lots of guys like that come and go.

bobbygedd
04-15-2006, 08:29 AM
businesses charge good customers for other peoples mistakes, and theft. example- your ins carrier will tell you, that your rates go up, because of ficticous claims. stores will tell you- that prices go up, due to theft. etc, etc. real businesses charge good customers, for the faults of others. that, is my tip of the day

All Season Bill
04-15-2006, 07:45 PM
(BKEYES: Sometimes I estimate high just to return 50$ so they feel it was a deal.)




That sounds all good and well - but what if you lost the sale because it was $50 too high?