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Old 01-29-2013, 01:38 PM
GaryBK GaryBK is offline
LawnSite Member
Join Date: Jul 2012
Location: Canada
Posts: 235
Yes I'm going to turn down that job. When I first started out, for several years I was held hostage by customers like that because some learn that they can bully you and you are so desperate for the work you will do anything to get the business. I then learned that I was a business and in business to make a profit. Time=money. I can't recreate time. When it it gone it is gone. I have to look out for my own retirement savings. There is lots of business out there and I will replace it with business that is worth my time. I often give a price and am told so and so will do it for x can you lower your price. I can tell that they are lying just saying that. (If the guys a real jerk I will tell him that's a good price and to sign up with x). I tell them no, that is my price. I will explain to them why it is my price and why I am better than my competitors and and I will often get the job after this at my price. The OP jumped on the reduction without even consulting with the customer. That was wrong and not professional. Costs are up 5% a year and with a 5% cost reduction he took a 10% hit. I'm not in business to make less every year. My customers get a 10% price increase every year. And they get used to it. Very very few complain about the price increase. They know everything goes up. The few that question the increase will get my explanation that we are labor intensive and dependent on fuel, insurance, vehicles etc that do go up by that amount a year. I used to, long ago, keep my prices steady year after year and then every few years make a big jump with a letter explaining why. That was a big mistake. I would lose customers with a 20% increase every 4 years or so. It is optics. Then I read a business book that said increase your prices every year and get your customers to expect it and you find it is better than a big increase ever so many years. And that book was right on. (From Dave Ramsey). If I cow-tow to a customer like that I lose my professionalism and they will lose respect for me. I am a professional. My trucks are washed every night, my employees are in clean uniforms and my trucks are dent and rust free and decaled. PS I don't want a customer like that. I want customers that make me money. You are not a businessperson if you say you can lose some on this job an make it up elsewhere. Wow what an attitude. No you make it everywhere! If you don't, then just go and get a 9 to 5 you will be better off.
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