Stick with agreed estimate or not?

Discussion in 'Lawn Mowing' started by Bassman, Dec 1, 2001.

  1. Bassman

    Bassman LawnSite Senior Member
    Posts: 270

    Should know the answer to this but it's bugging me...
    Gave an estimate to a contract annual prospect today. We agreed on price. After re-figuring time involved, came out to app. $25 more per month than agreed on price, (after going home and using the formula for time involved times 40 visits per year etc., etc.) These folks were referred by relatives that are a very lucrative account of mine. I'm a professional and should know that when a price is agreed to, thats the end of story. However, for some reason it's bothering me. Any one have second thoughts after agreeing on contract price? I think I should suck it up and do the job for the first year as I should know what the hell I'm doing when giving estimates and not re-evaluate my numbers later. My problem, not theirs. Comments please.
     
  2. dj'slawnservice

    dj'slawnservice LawnSite Member
    Posts: 28

    How bad do you need this job?
    How much does an extra $25 a month mean to you ?
    I really think that it's not worth haggling over......
    just my thoughts
     
  3. Jim Creager

    Jim Creager LawnSite Member
    Posts: 2

    Heres the Question I ask myself. If I was the customer what would I want done?

    On one hand an estimate is AN ESTIMATE, that is a basicaly a FAIR guess of what it will take to do the lawn. If you were $25.00 short on the actual cost would you try to raise the estimate? If yes, then you as a matter of concience should refund the overage that you have on this estimate.

    I myself would rather go to a customer and say, Hey I over estimated on your estimate it is going to be 25 bucks less!

    That shows your a good honest person.

    If what you gave them was a BID well a bid is a bid. that is what you get plus or minus.

    Jim
     
  4. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    I think it depends on all the variables involved that only you are aware of. I would say to honor your price and make it up elsewhere. You have more than just them to lose perhaps. If it was a new customer that wasn't referred I would think about telling them it is more. It sounds like you don't want to screw things up with your relatives or the new client. If you didn't make it clear that you would go home and finalize a price for them, then I would say to suck it up like your thinking to.
     
  5. deason

    deason LawnSite Member
    Posts: 236

    It was an ESTIMATE, wasnt it?:confused:
    Or was it one of these - "Okay, Ill do it for this amount. Thank you and see you soon!":D

    If it was an estimate, make your adjustments and be honest and explain to the customer why you did.
    If it wasnt an estimate, lay in the bed you have made and kick your self in the butt for the rest of the year. There would be nothing worse that going back on your word. Especially on a customer that you were refered to.

    Always honor your comitments.
     
  6. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    Do NOT change a thing. All that looks like, is that you are trying to squeeze a liitle more out of someone because you know they accepted your first price. We're no talking an unGODly amount, here. They would be questioning your integrity right off the bat. Not a good foot to start off on - especially with them being associated (let alone related) to one of your better accounts. Randy hit it right on the head. Make it up elsewhere. Just sell some extras. And with already established customers, this is all too easy to do. And DON'T cut corners to try to make it up!:mad: Keep your word, your name, your reputation, and your integrity. IT'LL come back to you!;)
     
  7. joshua

    joshua LawnSite Bronze Member
    Posts: 1,226

    stick to your word, enough said. you will do you better even if you know that you should be making more on that account. and add in what the rest of the guys said about your reputation.
     
  8. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Deal with it. Your error not theirs. Its agreed upon now. Actually in a court of law you made a price, they agreed, end of story. In real life, keep your word, if not the word will get around about you. It never fails. Maybe you can use this as an advantage down the road. But for the current situation stick to your agreement.
     
  9. Calm down.

    You're just second guessing yourself. Don't loose this account over a little nervousness.

    Gather more facts. Mow the lawn for the agreed upon price for a few times. A short cut on mowing technique may found, or at least the actual cost of doing the job will be apparent. But more important, it will be apparent to them

    Then you can go to them and explain "hey I made a mistake on the estimate, I tried to mow it for that price and it's too low."

    They'll be more likely to go along with the price increase if you're already on the job.

    Dave
     
  10. Green Care

    Green Care LawnSite Senior Member
    Posts: 530

    WE agreed on price.

    I would stick with the price , get it back in another area.
     

Share This Page