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  #21  
Old 07-24-2011, 04:56 PM
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I already know what I have choosen to do....so does Rob.....just interested in seeing the responses I would get here and the thought process behind them. I will fill you guys in later on what went down.
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  #22  
Old 07-24-2011, 05:11 PM
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PROCUT1 PROCUT1 is offline
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I think the confusing part is how did you sell it to the customer? If you sold him 7 pallets installed and told him he was getting 7 pallets at x per pallet. Then you owe him the difference. If you gave him a price to sod the lawn and did not tell him a specific amount of material and came under on your own internal calculation. Then you owe him nothing.

When I do cracksealing I bid one of two ways. A flat price to crackseal the lot. Then the material estimate and risk is mine. The customer is paying for the final outcome. Or I bid x number of feet at x per foot and we agree on a number not to go over. In that case if I get the entire lot sealed and it was 1500 ft and he authorized up to 2000 ft. I charge for the 1500 ft.
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  #23  
Old 07-24-2011, 05:22 PM
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I'm of the same mindset. I bid the job. No breakdown on costs. If I can source materials cheaper after the fact, good for me.
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  #24  
Old 07-24-2011, 05:22 PM
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Originally Posted by Michael Geist Yard Works View Post
Is not the applicator making the same assumption.....they are estimating what it will cost them in material and labor. If they use less material and labor because the lawn is thick and healthy they should give a refund at the end of the year according to your estimate right? Only charge for what you use right.
Mike I don't get your line of thinking. If you are charging for 7 pallets and using 5, why do you think it's right to charge for 7? Conversely, if you say 7 and need 10, you charge for 10. If I am installing a new landscape and call for 5 trees and only use 4, why would I bill the customer for 5?? If you are asking this question, you know it's the wrong thing to do, maybe you want to justify it.
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Old 07-24-2011, 05:31 PM
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I'm of the same mindset. I bid the job. No breakdown on costs. If I can source materials cheaper after the fact, good for me.
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That's fine, but if you give a cost breakdown and tell someone they are paying for 7 pallets and you give them 5, you need to charge for 5. I don't do an out the door price for a job bc you are stuck with that price when you underbid. If you line itemize, they pay for exactly what is used so if you do underestimate material, you don't eat it.
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Old 07-24-2011, 05:34 PM
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Originally Posted by diamondlandscaping View Post
Mike I don't get your line of thinking. If you are charging for 7 pallets and using 5, why do you think it's right to charge for 7? Conversely, if you say 7 and need 10, you charge for 10. If I am installing a new landscape and call for 5 trees and only use 4, why would I bill the customer for 5?? If you are asking this question, you know it's the wrong thing to do, maybe you want to justify it.
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Mike, excuse me if you just gave an out the door price. If that was the case, I wouldn't refund. If you said 7 pallets and charged for 7, you need to refund.
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  #27  
Old 07-24-2011, 05:40 PM
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Quote:
Originally Posted by PROCUT1 View Post
I think the confusing part is how did you sell it to the customer? If you sold him 7 pallets installed and told him he was getting 7 pallets at x per pallet. Then you owe him the difference. If you gave him a price to sod the lawn and did not tell him a specific amount of material and came under on your own internal calculation. Then you owe him nothing.

When I do cracksealing I bid one of two ways. A flat price to crackseal the lot. Then the material estimate and risk is mine. The customer is paying for the final outcome. Or I bid x number of feet at x per foot and we agree on a number not to go over. In that case if I get the entire lot sealed and it was 1500 ft and he authorized up to 2000 ft. I charge for the 1500 ft.
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I sold the customer on quality!!! How do you sell them?

Here is a portion of the email that was sent with the proposal ....this is word for word from the email.


As far as the costs involved, the breakdown is as follows:

To do your front lawn only - You will need 2,500 plus square foot of sod. That requires six and one-half 400 square foot pallets for a proper installation.
The cost of doing the front lawn only would be (6.5) or 7 pallets X $350 per 400 square pallet, or $2450.


So I covered both angles. I informed him of the total cost and the total number of estimated pallets.
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  #28  
Old 07-24-2011, 05:42 PM
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Originally Posted by diamondlandscaping View Post
Mike, excuse me if you just gave an out the door price. If that was the case, I wouldn't refund. If you said 7 pallets and charged for 7, you need to refund.
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We are on the same line of thinking...but as you see Diamond it gets more complicated as I did also inform him of how many pallets I thought it would take. I went on to give him a price break further in the email if he wanted to do the entire property which would of included 14 or 16 additional pallets dependent on how you look at it.
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If you aspire to a six-figure income, don't get advice from someone making $18,000 a year!
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  #29  
Old 07-24-2011, 05:45 PM
JDiepstra JDiepstra is offline
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Hooefully you were smart enough to just do the job for the agreed upon price and just continued on with the extra sod in the back yard.
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  #30  
Old 07-24-2011, 05:46 PM
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Originally Posted by Michael Geist Yard Works View Post
We are on the same line of thinking...but as you see Diamond it gets more complicated as I did also inform him of how many pallets I thought it would take. I went on to give him a price break further in the email if he wanted to do the entire property which would of included 14 or 16 additional pallets dependent on how you look at it.
Well, true, but the $2450 is derived from 6.5 or 7 pallets at $350/pallet. The right thing to do in my book would be to charge for 5. You aren't losing money and it's the right thing(in my book) to do.
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