View Full Version : Customer calls back 1 year after I gave estmate!
kootoomootoo
09-28-2006, 03:18 PM
Guy called today 1 year after I gave him an estimate on a lawn install.
Nothing fancy basic lawn install, topsoil and a few foundation beds.
The landscaper hadnt showed up as yet in a year and he wanted to check my availability. I said the price is what it is $3200.
"But my landscaper quoted $1650" .....yeah and he hasnt showed in a year.
"umm ahh i'll think about it"
HE IS ALSO HARVARD GRAD LAWYER :confused:
olderthandirt
09-28-2006, 03:30 PM
Must be gonna give the other guy a FEW more days to show :laugh: :waving:
JimLewis
10-03-2006, 05:53 AM
I get that occasionally too. I have had a dozen or so like that in the past year or two. Only it usually goes more like this, "Hi, Jim. You gave us an estimate about a year ago. I don't know if you remember or not (NO!) but we have the money now and we're ready to get started. Are you still able to do the work?"
yrdandgardenhandyman
10-03-2006, 06:24 AM
Guy called today 1 year after I gave him an estimate on a lawn install.
Nothing fancy basic lawn install, topsoil and a few foundation beds.
The landscaper hadnt showed up as yet in a year and he wanted to check my availability. I said the price is what it is $3200.
"But my landscaper quoted $1650" .....yeah and he hasnt showed in a year.
"umm ahh i'll think about it"
HE IS ALSO HARVARD GRAD LAWYER :confused:
That's because he wants it done for $1650 and he's still trying to find someone who will do it for that price.
I hope you all have a length of time that your proposal is viable written into it.
"This proposal may be withdrawn if not accepted within 30 days." can be a very important line.
kootoomootoo
10-03-2006, 08:26 AM
I hope you all have a length of time that your proposal is viable written into it.
"This proposal may be withdrawn if not accepted within 30 days." can be a very important line.
The way the industry is going in 10 years it will be a dream to get $3200.
Just look back 10 years ago.
yrdandgardenhandyman
10-03-2006, 10:04 AM
The way the industry is going in 10 years it will be a dream to get $3200.
Just look back 10 years ago.
I have customers that I could charge twice that and they would be happy. I don't because it would be unfair. It's no more right for me to take advantage of the customer than for them to take advantage of me. Keep only the good clients.
ACutAbovesiny
10-03-2006, 12:17 PM
I agree with putting a deadline for estimates. The price you give one year may have higher expenses the next.
It does more than protect your price. It makes people get on with it or forget about it.
Grimmy
10-03-2006, 01:54 PM
After all is said and done.
Nickel and diming!
Not a good way to do business.
AintNoFun
10-03-2006, 06:35 PM
aint that the truth!
The way the industry is going in 10 years it will be a dream to get $3200.
Just look back 10 years ago.
JimLewis
10-03-2006, 09:29 PM
After all is said and done.
Nickel and diming!
Not a good way to do business.
I agree. I never give a deadline for my estimates. In fact, I often get asked how good my estimates are good for. I always say they're good for at least the remainder of the current year, and possibly the next.
When a customer calls a year after I gave them a bid and is ready to go, I don't mention anything about an increase at that time. I just say that we are happy to do the work and arrange a time to draw up a contract and get the deposit. THEN, at the time I come to draw up the contract, that's when I go over my old bid to see if I need to change the price or not. Often times, I don't. But occasionally something has gone up since then. Maybe fuel or pay rates or materials have changed. And if so, I just mention it before I draw up the contract. I don't make a big deal of it. I assume they are going to be completely understanding and they usually are. The conversation goes something like this, "Before I draw up the contract, I'd like to revisit the estimate I gave you a year ago just to make sure it's all still valid. Let's see here.....Ok. The only think I notice is the price I estimated here for flagstone. It used to be a little cheaper last year. But because most flagstone comes from hundreds of miles away and fuel prices have gone up a lot in the last year, then the price of flagstone has changed from $450 per ton to about $550 per ton. Not that big of a deal. We are only using 3 tons of flagstone for your job. So that's just a small change of $300. But I did want you to know about it so you understood." Then I proceed to land my job.
Earthworker
10-04-2006, 08:09 AM
WOW!!! Are those prices for flagstone real or just made up? About 125 a ton here, course we also make it in the natural state.
If they sign it and enclose the retainer then you have made an offer and they have accepted it as it is written. Unless there are laws in your area that somehow limit how long your offer is good for, you'd have to do it for the amount you offered to do it for.
The limitation is not on whether you'll do the work or not. It is on how long your offer to do the work at a certain price is garanteed for. The use of the words "may be withdrawn" implies that the offer may be viable for a longer time, but protects you if the price of gas jumps by a dollar (not that that would eveer happen), or the price of bluestone goes up by 30% (not that that would eveer happen).
TPLawnPro
10-04-2006, 12:28 PM
If your prospect is a flake, then that's all the more reason that you must get a contract or proposal drawn up and signed by them.
You've got to really watch potential clients like these.
Now, at the bottom of your proposal or contract, be sure to place a footnote stating: "Quoted prices are subject to increase based on fluctuating costs of labor, fuel and materials." The customer needs to realize this when signing the contract. As a result, you can increase your price if it is necessary, while on the other hand you won't have to sell yourself short either. This simple little indicator on your proposal or contract presses the customer to jump on the price right then and there, because in the back of their minds, they know that the prices of fuel, labor, and materials could increase next week. Hell, you can emphasize this to themby telling them not to wait too long, that you are ready to get them scheduled on the books. Get a commitment from them.
If your client refuses to adapt to the cost of doing business with you, "The Professional", then they will just have to choose the route of sub-standard service through a non-professional.
This practice of doing business is not in any way treating the customer unfairly. This approach is designed to protect your bottom line as well as keep food on your table. Be fair, be accountable, and be firm. C.Y.A.
JimLewis
10-05-2006, 02:16 AM
WOW!!! Are those prices for flagstone real or just made up? About 125 a ton here, course we also make it in the natural state.
Yah, those are real prices. Flagstone varies from $400 per ton at the cheapest to about $600 or more for some varieties around here.
MarkintheGarden
10-05-2006, 07:37 PM
I hope you all have a length of time that your proposal is viable written into it.
"This proposal may be withdrawn if not accepted within 30 days." can be a very important line.
A very important line indeed.
MarkintheGarden
10-05-2006, 07:43 PM
WOW!!! Are those prices for flagstone real or just made up? About 125 a ton here, course we also make it in the natural state.
In Missouri flagstone sold for $230. a ton last year, this year $325. I was glad the day I learned this before providing an estimate.
vBulletin® v3.7.3, Copyright ©2000-2009, Jelsoft Enterprises Ltd.