Underestimate ?

Discussion in 'Starting a Lawn Care Business' started by harddog00, Mar 12, 2008.

  1. harddog00

    harddog00 LawnSite Member
    Posts: 94

    I underestimated a spring clean up today. The original estimate that i gave them will go up. How much do you think i can go up with out causing them heartache. And i know it is an estimate to begin with. But i do not want to lose them, as they are my first commercial clients.
     
  2. Raven386

    Raven386 LawnSite Silver Member
    from CT
    Posts: 2,160

    did you already do the work?
     
  3. CreativeEdge

    CreativeEdge LawnSite Member
    Posts: 65

    generally i would say eat it...its your mistake, the customer shouldnt pay for it. How much do you think you underpriced yourself? You can always make it up throughout the year, bump up your mowing $5/cut that adds up to over $100/yr
     
  4. harddog00

    harddog00 LawnSite Member
    Posts: 94

    Yea, already did the work. And i was thinking the same thing creativeEdge. Prob. just take the hit, learn from it and move on.
     
  5. Raven386

    Raven386 LawnSite Silver Member
    from CT
    Posts: 2,160

    yea, your going to have to take a hit on this one if you want to retain that customer.. or any customer for that matter.
     
  6. Raven386

    Raven386 LawnSite Silver Member
    from CT
    Posts: 2,160

    the only problem will be next year when you do it and your price goes up that $100 you underestimated, then they will wonder what the heck is going on that you raised your prices that drastically for the same service you performed last year.
     
  7. Bluestem

    Bluestem LawnSite Member
    Posts: 31

    You have to eat it on the service you already performed. As for having to go up next year, it will look bad, but you can't hose yourself in multiple years on this, so I usually just tell the customer that I underbid it the year before. They will likely know that your price next year is more in line with what other folks would charge.
     
  8. cspaugh

    cspaugh LawnSite Member
    Posts: 84

    You know what they say.....SUCK IT UP AND DRIVE ON TROOP...that is by the way the quickest learing curve, bet you wont do it again.:hammerhead:
    AIRBORNE
     
  9. BeautifulBlooms

    BeautifulBlooms LawnSite Senior Member
    Posts: 613

    If it was written as an estimate and not a firm price proposal you have the right to raise it up. If it was only an "Estimate". If you said nothing about it being an estimate then you have to eat it, I would let the customer know you underestimated the job up front, and see their reaction. You don't have to ask them for more money, but just let them know you made a mistake int heir favor. Then continue to service their property like you know how. Don't skimp to make up that lost cash, but if you can add more services make sure you charge accordingly. If they ever want another quote from you for the same spring cleanup they will wonder why the price went up so much and you can just remind them how you underestmated it in the past. Or just propose time and materials to them for the services until you get accurate times.
     
  10. harddog00

    harddog00 LawnSite Member
    Posts: 94

    Thanks guys
     

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