Is this a bad business practice?

[njnewbie]

When giving "estimates" I always find myself blurting out the lowest possible figure under pressure that I might offend or scare off the customer. I'm young, we don't have uniforms or anything (getting shirts), we're uninsured (will be very soon), and we're not a registered business (will be very soon), so I don't feel I have the license to charge quite up to industry standards all the time. I know the whole "looks like acts like must be a professional" thing... we're working on it. Right now I would say we look like scrubs, just wearing basketball shorts and sleeveless T's to work. A signless Cherokee pulling a dinky trailer with a 1970's Ransomes 48 on it. It's a sad sight. But we're doing OK. Anyway...

I'll give an estimate of 350.00 for a small job that I know may possibly cost 350.00, but will most likely be worth 450.00. Is it bad business to give the customer a loose price range, like saying "It's going to be between 350 and 450"? Also, is an "estimate" contractors' lingo for a sealed commitment to the price of the job, or is it simply an estimate of the price? I know auto repair guys often give actual estimations that can change depending on how long the job takes. The answer is probably unbelievably obvious to most of you on here but I'm for some reason clueless. Thanks.

[cfclawns]

first of all i would not worry about estimating a job i would worry about a license for my buisness and some insurance to cover your butt if something happens. you can get liability for about 100.00 per month and a license for less than 50.00 a year get caught and you could be through. now that the preaching is done i try to quote an exact price if i feel i need to leave myself some room i try to keep it with in 50.00 +or - you have to stand on your prices let your work and good cutomer service be your selling point eventually it will sell its self by word of mouth. GET LEGAL MOST IMPORTANT AND DONT WORK FOR NOTHING JUST TO GET THE JOB it will hurt you later on and the rest of us now. we all have to raise the price bar together

[Phillip Baker]

I agree, dont bring the price in your market down just because your a newbie!!!! Try and bid your jobs at the current market price. If you feel the job is worht $450.00 then quote that. And dont ever show fear in bidding those prices. Most customers are aware that certain things cost money!!! If a customer shreaks at your price then discuss other options, mabey downsizing the job, split the job up, or just simply ask upfront what is your current budget like for this project, and let the customer know that you can work within thier budget to make the project work for them. Alot of customers will tell you "I have around $500.00 to spend but I dont want to go that high if I dont have too" now you know where thier "price cutoff" is and whether or not your can work within that number. If their number is to low for you then walk away, letting them know that your "quality work and time" are worth a little more than what they had in mind. I have found being upfront with customers about price often leads to the customer agreeing to my price, if they insist on a lower price I simply insist they call some one else. Just because your not in uniforms and using the best equipment doesn't mean one day you wont be, so charge like a proffesional and eventually you can afford to dress like a pro!!!!!

[Elwood]

If you are almost embarased to give the price to the client......you are priced just about right!

As far as a variable price, I have run into jobs that look like they could take a little more or less time than what I think. Experience will be your biggest guide here, but if you are really unsure, tell them that your price will be between $350 and $450. If they inquire about not having a firm price, tell them that jobs like this sometimes get done quicker than expected and if we get done sooner, we will charge you the lesser rate and to be fair to them, you offer an "estimated price". If they insist on a FIRM price, tell them $450. They will move towards your variable price and be happy in most cases.


Get yourself legal ASAP. Expecially liability insurance.

[steve-o]

i was hell bent on my minimum price of $35 and lastweek i broke my rule just so i could get in the neighborhood that i had sent 350 postcards to. the lady had a small front yard , mostly beds and her back was small with a gate that i would have to have a push mower for . anyway she wouldn't go $35 so i said $25 and gave her a price of $5 per medium size holly bush to trim knowing it should be $7.50 or maybe even $10.she said she would call me. i felt like **** because i knew i underbid myself. the old tight b!tch didn't call and now i will never do that again. keep good records of your times on jobs such as leaves and cleanups and know your sq/ ft so you will have a good idea what to charge in the future. if you put down landscape block keep a record of how many you do in the time spent and next time you can bid accordingly either up or down. stick to your guns . your gonna hit some right and you will get burnt on some, but you will learn from the ones you burnt on . oh yea this is from one of your goody two shoe 100% legal buddys. lol
steve

[MGO]

I once remember someone on here giving the advice that "If you are not embarrassed by the price you give...then you are probably to low..."....I think it was Seascape.

I have found myself on several occasions tempted to give a lower price then what my calculations have told me because it "seemed" to high....only to remember those words I quoted above....in all cases I qouted the price I calculated.....got the job.......and after doing the job I WAS VERY GLAD I STUCK TO MY NUMBERS!

[Blake]

Bids

I live in a small town, know most of the people. If its a fairly big job & time isn't pushing, I look over the job with the customer, ask if I can sleep on it. If thats ok with the customer, I come back the next day with a professional looking bid. This extra time helps alot.

Sometimes I just say,"Let me mow it and let's see how long it takes."

But like I said I live in a small town & know most of the people.

[Lawnboy112]

Sometimes, it is good to aim a little high, because then you can haggle to a good price, where if you started with it they you haggle down more. Just my two cents.