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I gave money back to the customer!

Discussion in 'Business Operations' started by DynaMow, Apr 10, 2006.

  1. DynaMow

    DynaMow LawnSite Senior Member
    Messages: 570

    OK heres the deal. 5 days ago I do a mulch quote I figure 6 yds of mulch, 200 linear feet for cut bed edge, small cleanup basically leafs in 2 beds just around plantings. So when I am leaving I see another guy pull into home and walk property. Young guy, nice house($350,000), nice hood (I do not have a presence in yet, my city)

    So I pull back into the driveway, get out of my truck and told him to get off my customers property and punched him in the face, No I'm just kidding (another Thread).:laugh:

    Anyways this is what I quote, I figure 7 yds of mulch ($385) , think he needs 6 I always add 1 yd, 200 linear feet for cut bed edge ($100), small cleanup basically leafs in 2 beds just around plantings ($80).
    CUST: didn"t know wife was getting quotes and this other guy is charging $40 per yard mulch installed, what are you asking for by yard?
    LLL: $55 per yard for the best lookin mulch you can get, show him sample (yes I carry samples of mulch in little plastic tubs, sell the best, be the best) How many yards is he figuring?
    CUST: 12 yards. LLL: (SheShovel I was proud of myself, another thread) Guarantee you do not need more then 7 yds. He was probably figuring that front bed, which I knew wasn't yours by the type of mulch in it, and he is trying to sell more yds, how do you know how many he is using?
    CUST: Then whats your other $180 for?
    LLL: I have to get those leafs from around the plants & shrubs, and all those beds are going to be re-edged. Must be, and if you ever want that mulch to stay in that bed there, I will need to build a wall around that one side (heavy slope).
    CUST: Me and the wife have been talkin about that, you do that?
    LLL: Oh yeah.
    CUST: Do the mulch and get me the price on that wall. When can you start?

    I start today, get 5 yds of mulch (all I can carry, 1 load). 5.5 yds is all it needed. I couldn't beleive it. So I invoice him, give to wife for 6 yds @ $55.00 per. Showed him that I came in $55 under quote. Wife gave me high five, and says lookin forward to getting that wall done.

    Now why in the world would anybody ever do that?
    BobbyGedd I already know you do not agree with this.
  2. wacamaster

    wacamaster LawnSite Member
    from MI
    Messages: 198

    No you can't do that. You placed your bid at a flat rate.. you don't need to tell them what you are charging per yard. You can't charge them with two bids.. flat rate and price per yard... you'll be giving them money back when you come in under and having people ***** and moan when you come in over. Lose Lose situation.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    Yeah Craig better hope Bobby doesn't read this thread :hammerhead:

    Now in your other thread you said you felt you still leave money on the table...so when you make money don't give it back!!!!!!
  4. DynaMow

    DynaMow LawnSite Senior Member
    Messages: 570

    "Yeah Craig better hope Bobby doesn't read this thread"

    He is going to come to Ohio and beat me with his shovel!

    why do i feel that this will pay off on this customer in the long run?
  5. sheshovel

    sheshovel LawnSite Fanatic
    Messages: 5,112

    I dunno how that other guy fiqured 12yds when it was an obvious 6..1/2 the amount he estimayed for..the only thing I can fiqure is he must be lieing about how much he actually applies compared to how much he bills the customer for.
    Most customers don't know how much a yard is.
    So I say you did the right thing...you were only off by 1/2 yard...you thought it needed 6- you estimated 7 and it took 5&1/2.
    Pretty good going.Customer happy cuz you came in under price..this always makes for a win win situation...that is a main goal..make your customers happy while still making a buck...
  6. DynaMow

    DynaMow LawnSite Senior Member
    Messages: 570

    Crap I forgot another thing (I am an idiot) I got his lawn maintenance too.
  7. firelwn

    firelwn LawnSite Member
    Messages: 98

    You made them happy sound like you may have a customer for life. About the part about you giving money back I do it all of the time but when I under estimate I cant go to them and ask for the money, even though some would be ok with this NOT MANEY. Its just a part of the buisness you have to be good at estimating your work thats All there is to it.
  8. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Messages: 10,178

    craig craig craig.....never, EVER quote a mulch job, "per cu yd". i'll tell you why: as a pro-fesh-ion-al, you need to be able to measure the beds, and figure out how much mulch you'll need. if u measured, and came to the conclusion that u need 6 yds, then, by all means, charge them for 7, but don't quote the job as "7 cu yds @ $75 per yd." no way. simply quote it as, "mulch beds, $xxx amount." because, if by some chance some day, you measure wrong, and u originally quoted 7 cu yds, and it came out to 10, you'd be expected to eat the loss. all mulch jobs should be quoted as EX: "mulch beds , front + side = $700." this way, if the mulch guy scooped you a nice load, u make out. if not, you still make out
  9. gqnine44

    gqnine44 LawnSite Senior Member
    Messages: 502

    Amen! You should stick with the price you quoted. It was a good day for you. You should have just enjoyed the bonus.
  10. Bkeyes2

    Bkeyes2 LawnSite Member
    Messages: 2

    Sometimes I estimate high just to return 50$ so they feel it was a deal.

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