Clients ever say your too cheap?

[Mowin4cash]

Had a commercial client say I didn't charge enough. My contract with him was for $550.00 monthly. He said I should be in the $750.00 monthly range, and that when renewel time came, go ahead and increase the price. I did so, and lost the site to another company with almost the same rate. Just don't get it. The guy seemed to be sincere. Did I get screwed or was I just stupid in following the ploy?

[Eric ELM]

Sounds like someone wanted to get their buddy's in there and to make sure you bid higher so this other guy would get the bid. Sounds like a setup to me.

[kutnkru]

I have YET to meet or bid for a commercial contract where there was some kind of customer loyalty. The only loyalty they have is to their budget and bottom line. In the future if you were making a profit, then I would stick to your guns. If you needed to raise the price say $80-100, then I would adjust my price accordingly.

We cut a property that we have been awarded the bid to for the past three seasons and each year have come in $75 lower than the lowest bid. However because of the machinery we have at our disposal what took the previous contractor almost 4.5(9 total) hours to mow with 2 walk behinds we do in 1.75(5.25 total) with three.

Kris

[TJLC]

I think any person wanting to pay more than what you are charging, should throw up a flag! I think Eric is right, you were set up.

[Green Acres]

I have never had anything like that happen to me atleast not yet. I have had some people say I was to cheap when I first started out a couple of time I got paid about $150 more than what I estimated it at. This was never for a commercial site just residential.

[Scag48]

I usually don't hear people telling me I'm too cheap, they usually say, don't need you anymore, I can't afford it. Well, most of you know, I'm relatively cheap, that's all regional though. No doubt if I lived in a high scale community and with a little more rapid population increase, I'd have it made. I think you got screwed up crap creek on that deal. That just doesn't sound right. I'd want some answers on that one. Is it right to actually ask people why they chose someone else over you especially in this situation? I don't know, maybe it's me, but if it was a good account, I think I'd be a little unsure. I wouldn't sleep just trying to figure out why. I hope you figure out what the deal is. The sooner the better 'cuz them Benedryl's sure are horsepills and I hate swallowing pills.:) Good luck!

[Edited by Scag48 on 02-05-2001 at 11:48 PM]

[BUSHMASTER]

A wise person gave me this advise when bidding on any job that you are compeitting for the work "The squeeky wheel gets the grease" .......get it! he probally was going to gain a nice $100 CASH rebate every month......just need to know when to play the game.........

[Skookum]

I had a commercial account that I made a bid on a few years ago. The owner called and said he had to meet right now, today. I said sure, but I must bring my infant son with me if that was alright. He said sure that was fine. After talking for a few minutes at our meeting at one of his stores, he asked if I was charging him enough. I said by all my figures, yes. He wanted to add 4 flats of flowers at one location, his house. He told me to raise the monthly bill $150.00. For 8 months that was $1,200. After adding it all up it, He told me to add another like $7.00 to make it a nice round number.

The following year I told him I would like to raise the price $25.00 a month. He said I should, everyone else does every year, but I was the first vendor to ever ASK if it would be OK. So, he told me to make it a even $100 more a month.

I took a year off from the work this past year (Family Time) He understood and told me he would not sign a contract with anyone but me. He called me several times this past summer to check on me and my family, never once brought up business. Then he called me this fall, wanted to ask if I would be coming back to do his accounts this next year. I told him to give me a day and I would get back to him. I called him next day and said I would. I added that I would like to add $50.00 to my past monthly price. He said "Make it $200, your worth every dollar"!

I really want this guy to adopt me, but I think he already has in some way. I know my little boy helped on our first meeting. After that it was the work. And lastly, it was my willingness to walk away for my family. I earned his respect. Also, the other LCO did crap work!

He called me a few days ago and stated he was selling his stores end of next year. He told me whom ever buys them will understand that I go with the stores for a five year term as long as I provide the current level of service plus the inclusion of the snow removal work if I wanted it. (he use to use his wifes son's construction biz for snow) He then asked me for a price, for his budget, to take care of just his house like I had been doing (it was included with the stores). I called him back with the price. He told me to round it off $45 to my favor.

I LOVE this guy!

[bobbygedd]

wow, what a score on that one! those r few and far between. last year i was out for 5 weeks with surgery, and had 4 of my customers all on the same block pay me an extra $5 per cut, i called them and hey, u overpaid me by $20 each, thay said it was to help me make up for money that i lost. very nice people, and they have been paying me the increased rate ever since.

[awm]

Unless this was a personal friend ID
be careful.Could be some son or son in law
in the buisiness waiting for you to take the bait.
And if Bushmasters right about kickback .
You use your own judgement.Not me though
thats just to much headache if its found out.
Reputation is something you cant cleanup
with pinesol.

[zimm4]

I have had people give me some big tips.
Even when I tell them Im the owner.

[captdevo]

sounds like you were set-up. If you were comfortable with your bid/profit margin, you should stick close to it. Lesson learned the hard way. I had a similar situation happen with a city bid, but I didn't fall for it (call it sixth sense) Come to find out the city managers bro-in-law was just starting out. I've been doing it for three years now, luckily they replaced the city manager the next year.

[greenlawncare]

Believe it or not I had a RESIDENTIAL customer one time reject my $150.00 a month estimate and recommended $200.00.

He seemed to be of sound mind.

I accepted his "counter-offer", but I was concerned that he was going to ask a lot more "extras" from me now. He didn't. But I'll tell you one thing. I made damn sure that I did the best job possible on his property and never rushed it. He is a smart man.

[nlminc]

I was called to rebid a city job that I had won last year. The manager told me that I had room to move up from my previous bid. He didn't give me any figures and I was a little reluctant because the job was profitable anyway. Well, being the sly that I am, I raised my price by $1000.00 for the job and won it back. I was surprised by the other bids! I was about 5000.00 less than the high bidder and 1500 lower than the next lowest bid. I have done this job before, so I know what it takes. With one other employee I was making between $100.00 and $125.00/MAN hr. on this job last season. It's a hedge trimming job, so each time there was a slight difference in the job hours depending on growth. I know the high bidding co.'s send out crews that could compete against the National Turtle Olympic Team (lol) so I guess they figure more men and man hours to complete the job. I don't really look at myself as being the low bidder when I'm making that kind of profit on the job.

Chris

[GrassMaster]

Hello Everybody:

Was this guy that told you this, "That you weren't charging enough", is he the very top person at this company? It doesn't sound like he is?

If he is not, I would go to the person in charge even if out of town, I mean do it on the phone if that's the case, the very Top Dog & explain what happened. This is called Bid Rigging & is very frowned on in most cases. The person could loose their job over it.

Ofcouse if he works for a City, County, State, Government or Federal Agency & he is caught, he will just get promoted or early retirement with Big Bonus! :-)

Sounds like you were done wrong & no you weren't stupid, no way, I always take people at their word unless it is just outrageous. Then I judge them from there. Just like others said, sounds like a buddy, kinfolks or maybe the guy was offered money.

In my eyes the guy is a thief of the worst kind. Because very seldom do they get caught. I ran across this several times in Lawn Service & a lot more times being in the Outdoor Power Equipment Business. I've had folks in good high paying jobs tell me if I take them out to eat & maybe let them have a hand held blower or trimmer. That their company would be glad to do business with me. If I accept as bad as I need money, I would be a theif just as him. I just reply Ok I'll do it & you just get Mr. BIG Boss to come to lunch with us & we discuss it further. LOL, Click is the next thing I here on the phone.

Pride & Honesty is far more precious than Money, at any expense.

[thelawnguy]

Read Eric ELM first post.

This is how I got my first big snow account (the pres is a friend of mine).

My grandfather had a contracting biz and always got the bid with municipalities due to inside connections. Worked sort of the same way, except the guys in the know would decide among themselves which city each wanted and would coordinate their bids.

He he some things they just dont teach at the university.

[Mowin4cash]

Just to follow up guys on my initial post, it looks like Eric had the first and correct idea of what happened. After some gentle prodding for information, I discovered that this is essentially what happened. But, now that I've dropped the regional VP of Operations name into the bucket, it's so funny to watch this guy squirm! I mean all the stuttering and stuff. Just how hot do you think I should turn up the heat on them.