price negotiation

Discussion in 'Business Operations' started by oakhillslandscaping, Mar 20, 2009.

  1. oakhillslandscaping

    oakhillslandscaping LawnSite Senior Member
    Posts: 643

    ok i have been in this industry since i was 16 im 22 now and i have met with hundreds of clients but last night i went and met with a customer and i gave him a proposal for a job and he wanted to negotiate it down by a large margin and this is a first for me he wanted to cut into 1/4 of the price of the plants he want and the rest was fuel and company profit i was appalled he told me he wouldnt get any more bids and blah blah blah if i dropped and i told him that i would encourage a variety of prices and that i probably wont be the lowest cause thats not what my company stands for even in tough economic times i cant afford to drop my price this much and now im goin to wait forever im sure and i need the work but im wondering if i should drop it either way just not that much any suggestions
     
  2. dewos

    dewos LawnSite Member
    Posts: 189

    If everyone would just hold there prices to last year we wouldn't have this problem... contracters are just freaking out wayyy to early and dropping prices.. to what do more work for the same little pay.. Well I kept mine the same and booked a few jobs so far.
     
  3. Flow Control

    Flow Control LawnSite Bronze Member
    Posts: 1,267

    Good for you, stick to your guns. If you lower your price by x% that means you have to increase your work volumn x% just to make the same amount of money. I am a irrigator and its the same for me with people willing to work and not make a profit. I just turn down the jobs since every install we do we run a risk of hitting utilities or other stuff that is underground and it is just not worth it.
     
  4. HulkXD

    HulkXD LawnSite Member
    Posts: 74

    I'm with you. Stick with your prices. And, please use punctuation. That $*&t is hard to read!
     
  5. fl-landscapes

    fl-landscapes LawnSite Silver Member
    Posts: 2,542

    I've always looked sideways at guys who drop their prices after they submit a bid. I mean a LITTLE wiggle room may be ok. But if your customer asked you to drop a price as much as you say and you do it. Does that mean your original price was a real screwing? I would do what you did. Tell them you always give the most fair prices the first time around. If he wants the work done super cheap the quality will show....or lack there of. Good job! Stick to your guns.
     
  6. bohiaa

    bohiaa LawnSite Fanatic
    Posts: 5,220

    I once had a man try to make me come off 5.00. I would NOT budge.

    you would'nt belive how mad he got. I jsut figured if he's this CHEEP. what does the future hold. so we walked
     
  7. Birdjr

    Birdjr LawnSite Senior Member
    from nnj
    Posts: 451

    If he wants u to go down 1/4 of the price take away 1/4 of plant materials that u were gonna use.
     
  8. oakhillslandscaping

    oakhillslandscaping LawnSite Senior Member
    Posts: 643

    hey guys thanks for the advice i was a little unsure of myself, and i will use a little more punctuation haha i have given estimates to restaurants and had the owner offer free meals instead and i usually laugh and decline, but this was rediculous for a homeowner to do. if you cant afford it dont do the work
     
  9. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    When I bis some jobs like mulching and bed clean ups I mostly have reedging the beds and a few small extras in it. So if they ask for a lower price I'll tell them no problem ,we'll just not do this or that to get to your price. If they ask for a price cut they need to give something up for it.
     
  10. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    It's all a matter of if you need the work, and if you have enough room in your price to lower the price and still make a good profit. I don't usually entertain any negotiations but if I think it might be beneficial down the road I'll play ball. I think as a business owner you have to look at opportunities and weigh the upsides and downsides as they come and make your own decisions.
     

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