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You mis-priced a job. What next?

Discussion in 'General Industry Discussions' started by crawdad, Sep 21, 2006.

  1. Randy J

    Randy J LawnSite Bronze Member
    Posts: 1,124

    Well put. I certainly can't argue - even if I don't fully agree.
     
  2. crawdad

    crawdad LawnSite Bronze Member
    Posts: 1,939

    When I first gave the price, it was agreed that the price would be 45 for the first cut, as it was overgrown, then go down to 35, and I'd let him know if I could continue it for that price. He agreed.
    After cutting the lawn twice, I talked to the owner, and told him that it would have to be 50 dollars. He replied, " No problem. I figured you'd have to go up after you saw how bad it is."
    Of course, when using verbal agreements, a person's word is everything. This is why, after all of these years in this business, I have never been stiffed. I do good work, and I always get paid.
     
  3. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    Number 3, why should you keep loosing money. And I'm sure they aren't going to accept a $20.00 increase next year.:waving:
     
  4. DynaMow

    DynaMow LawnSite Senior Member
    Posts: 570

    If crawdad is so experienced why did he underbid? Sounds not to experienced to me. Plus if you have only owned a lawn service for a year it doesn't mean you do not have business experience.

    Crawdad didn't explain everything in his original post, Splicer just gave his opinion on what he would do. I do not agree with him though, if you keep doing it the first year, the second year you could lose it, or if they do go for the increase now you are mowing for two years at no profit (2nd year just breaks even with loss in first year)

    Crawdad if you already knew the answer why did you ask? I think I know why, cause you are an ________!

    So the answer should be #4, keep at the higher rate that you told the client about originally, but you did not give that as an option!
     
  5. crawdad

    crawdad LawnSite Bronze Member
    Posts: 1,939

    OK!
    If any of you want to mow it for 35 or 45, come on down, I will give up the 50 dollar job for you. I've got plenty of work. At my prices.



    Why did I ask? To see what others would do, given a similar situation.
    Why did I underbid? Because many of the freekin rocks were covered by excessive growth. Re-read the thread, ask questions, if you don't understand.

    No, I didn't put everything in the original post. Do you want the entire conversation?
    I have been called a lot of things, but this is the first time I have been called a _________! Wow! That hurt!

    There were many more options that I didn't give. I could have listed 10 different options, but preferred to see what others came up with.

    Why did I underbid? Because I'm human, and I make mistakes. Everyone makes mistakes, but the mark of an experienced professional is how he fixes these mistakes.
    Only one man was perfect, and they crucified Him.
     
  6. lawnwizards

    lawnwizards LawnSite Silver Member
    Posts: 2,434

    i believe that those that underbid and continue to work at the underbid price will start to regret their bid. this in turn leads to shotty work because you will dread cutting that account because you know you underbid and once you get there you will rush through giving them "the quoted price" lawn cut. instead of raising your rate after you knew you screwed up, you kept the low price, end up doing shotty work and then next year they find some other sucker to do it for "the price i paid last year". everyone should listen to mac, he knows how this stuff works. ask him how much prices have gone up since he started. thats why you don't stay at $35.
     
  7. Splicer

    Splicer LawnSite Senior Member
    Posts: 992

    Crawdad quit making excuses for your own shortcomings and trying (unsuccessfully I might add) to blame everyone else...CM was right..."cause you are an ________________!"
     
  8. crawdad

    crawdad LawnSite Bronze Member
    Posts: 1,939

    Sir, please show me where I am blaming somone else, or STFU.
    You are not making any sense at all.

    I'm not sure which I find to be funnier, the fact that you have a Craftsman, or the fact that you proudly list it in your sig line, along with such items as a dump cart.
     
  9. jcb287

    jcb287 LawnSite Member
    Posts: 126

    #1 then adjust price next season....:)
     
  10. sheshovel

    sheshovel LawnSite Fanatic
    Posts: 5,112

    Ok Ok OK NOW we are getting into the diff between giving a
    Price
    Estimate
    or a Bid.
    You boy's seem a bit confused on this matter so let's get it cleared right up.
    Splicer of course does not have to read the yapping and flapping of my jaw..god forbid the guy might want to actually LEARN something here.
    OK in some of your views you think this
    Giving a PRICE = I have to stick to it no matter what because if I don't then I am ripping off my customer because I told them a price and it was too low so now I will gladly work for FREE for a year, rather than admit to my customer I made a mistake and try to rectify the problem. I will work for no profit for a whole year because my word is my bond and I can't look like I made a mistake by upping my price after the first cut cuz then I might loose the job I am doing for free for the next year.

    ESTIMATE = I have no idea what this job will be so I am gonna throw out the first figure that comes into my head and see if they go for it. If I am too low I will eat it but if I am too high I will keep it. my word IS my bond and that's that.

    BID = Same thing as a price and the same rules will
    apply. Not an estimate though because it is a solid as a price it and can't be changed no matter if I am going broke and paying for the customers work to be done by me rather than the customer actually paying me for the work. Matters not I bid the job wrong and I will slit my wrists rather than adjust my bid. Might make me look like I don't know what I am doin or something.

    Real life view of these terms
    Giving a
    PRICE = Verbal agreement-Telling a customer what you will do the job for and you really think that IS what you will do the job for. BUT once you do the job, if any conditions exist that will increase your labor and or increase your costs, you inform the customer of what those conditions are and what your price is going to have to be adjusted to and you take your chances of them saying nevermind. If you do anything other than that you are not in a business state of being and if you are you will not be for long.

    ESTIMATE = Always done on paper-A breakdown of materials and labor costs to do a job for a potential customer. The job can go over or under this estimate depending on unforeseen conditions that you may run into during the job.
    It is open to add-ons or changes by the customer during the work but when that happens then you immediately inform the customer that that is not within the original est and you write them up a new estimate including the add-ons or changes. Or you write them up a separate estimate for each job outside the original estimate.They sign it


    BID = Always done on paper- Competing with other companies for one large job. They have announced they are accepting bids for a certain amount of time. You find out the description and scope of the job and you write up a bid that will be scrutinized by this company alongside
    other companies that do the same kind of work you do.
    Only one bid is accepted and if it is yours then you have to stick to that bid for however long the bid and final contract state.
     

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