Is there anything you can do with the price?

[Simon.P]

Hello.
I am a tradesman and this is the first time i have been challenged on a quote. Someone has just left me a voice mail basically saying they want me to do the job, but is there anything i can do about the price. I priced it up on the leaner side as i suspect this will one of many jobs they need completing, but i still have to make my bacon! So, i am looking for some diplomatic ways on answering this and be grateful of all suggestions.
Thanks
H

 

[Faevilangel]

If someone asks me to "work on the price", they get told to go to a cheaper provider, at the end of the day they chose you for a reason and unless you really want to get in a battle over price every time you quote then you need to be firm and explain that you can't amend your price.

 

[swankypants69]

Just explain what you have explained on here

That you have kept your price as keen as you can already

 

[Simon.P]

thanks both. I will call them back later and say that is my price which isnt negotiable: everyone has different overheads and why not get 2 other quotes (assuming they haven't already) and choose which ever one they feel content with.

 

[SugarCubeProductions]

I think the best answer is "sure, how much would you like me to add on?"

But don't ever sell yourself cheap, as people will then expect you to do that again and again.

 

[Simon.P]

Good point, thanks Kye

 

[paulears]

Ask them which part of the job would you like to down rate? I will tell them we could easily save X£ by cutting this, or reducing the number of Y, or we could save money by removing a part that prevents expensive downtime in the future, as it's just protective and if they have budget later for possible repairs, we could go without it. Most times this seems to work, and if they really want ultra budget, I'll swap out components for cheaper ones with then appropriate warnings. If they ask for silly prices, I nicely decline and that's that!

 

[Maxwell83]

Ask them which part of the job would you like to down rate? I will tell them we could easily save X£ by cutting this, or reducing the number of Y, or we could save money by removing a part that prevents expensive downtime in the future, as it's just protective and if they have budget later for possible repairs, we could go without it. Most times this seems to work, and if they really want ultra budget, I'll swap out components for cheaper ones with then appropriate warnings. If they ask for silly prices, I nicely decline and that's that!

This is the best way of dealing with the "can you do it cheaper" type customers. Give them a cheaper price by reducing the service in one or another - let them choose what they are willing to compromise on to get the job for cheaper and explain what those compromises will mean to the end result.

 

[paulears]

My pet hate are those companies who tell me it's a very budget restrained project, and I spend hours working out the quote to fit it, and then they tell me to save an extra 5% or it can't go ahead.

It happens too frequently, so I now include in the quote a few items that could be downgraded without compromising the project - probably items with lots of features that are not initially needed. When called on to save even more - I can downgrade these items and the project still functions. Without these to play with, the extra discount comes out of the already small margin.

Not really on topic, but frequently my detailed 'shopping list' then gets hawked around box shifters, and I can't compete with them. My tactic on this is to be vague about key products - I'll re-describe a product by it's features, but in a way that Google doesn't find helpful. Anybody in my game knows what it is, but box shifters have no idea what the item is, so can't quote. Doesn't work every time, but is 8 output, dual shared buffered DMX output distribution unit sounds great compared to 4 way DMX splitter, which Google immediately finds ultra budget ones that my competitors would use.

 

[Simon.P]

evening,
thanks for the further posts.
I take on board what you are saying, but i don't generally give my customers the choice on part selection. For example, i always use mcalpine, john guest etc for plumbing, crabtree, MK for electrical fittings. I will never fit cr@p parts as when they fail, its down to me to rectify!
This was really a challenge over the labour fee. I spoke with the customer earlier who basically said he wants me to do the job but for less! he did all the talking and it was basically a sob story of how much his house is costing him. I said i know how much houses cost to do up and to call me if he wants to book me. not a nudge on the price

 

[paulears]

If you are making a good margin on the parts, then if you want the business, do the deal. The one thing I did learn is that you cannot do a deal once, and then go back to normal price next order. Do it once, and that customer expects it for ever. I sell microphones on ebay and via a web site - probably about 50/50. I found a box of brand new stock I'd forgotten about - paid for last year. This product was a great seller, but then a new model arrived and wiped these ones out. Cost price was just under £25 per item, and they used to sell for £45, which was still good value for money, and they're pretty good, so zero returns. I put them on ebay for £25, which means a loss on every one after the fees. £25 is excellent value - and if they Googled them, they'd see how good a price it is. 20 mics sold, and three offers made for £20! I was honest, and told them that at £25 it was costing me, so £20 was sadly out of the question. They're chancers, and trying it on, attempting to get an even better bargain. Walking away is not always bad?

 

[Simon.P]

absolutely agree Paul, sometimes its knowing when to walk away.

 

[am:pm graphics]

Well done for not moving on the price We sometimes get people asking if our prices can be lowered and we just explain that our prices are already competitive and that we like to offer all customers the same competitive prices.

From experience we've found that in some cases, it can be these clients that are slow to pay and need a lot of chasing! We now ask for upfront payment so we are not wasting our time contacting late payers!

 

[Simon.P]

We sometimes get people asking if our prices can be lowered and we just explain that our prices are already competitive and that we like to offer all customers the same competitive prices.

thats a good answer and fair too, thanks.

 

[Richard White]

The general rule in consultancy sales which has some relevance is never to negotiate your rate but instead negotiate the scope of the project. The problem is that if the buyer has alternatives and they are all offering pretty much the same then it always comes down to price. The trick is to find yourself a niche where you have some advantage over your competitors.

I don't know how or if it could work for trades but in other kinds of services you can do a lot with pricing by packaging up services.

 

[David White]

Some people always ask this question. It's often simply a negotiation technique.

Your answer should be simple and something down the lines of "I'm afraid not, when would you like the work starting?"

This parks the price question and puts them in a position where they have to make a decision. If the price really is an issue then they will stall at this point.

Stick to your guns on pricing, especially in the consumer world. You'll get referrals if you do good work, but be sure they will tell their friends how much they paid.

 

[Ian J]

Some people always ask this question. It's often simply a negotiation technique.

Your answer should be simple and something down the lines of "I'm afraid not, when would you like the work starting?"

My response to a statement like that would be "In a couple of weeks if I award the job to you but I need to get a couple more quotes first"

 

[estwig]

Are there any sales people on this forum?

Can you do anything with the price is a great question to be asked, it means they want what you have, but they just need to justify it to themselves. They need to be sold to a little more, they perhaps feel what you have for sale is a little expensive and they need you to explain what a bargain it really is.

You have a clear cut buying signal and objection in front of you, happy days!!

I'm sure we can work something out, have you got something in mind? Is the correct answer to the prospects question. Take the emphasis away from price and money and fire the question back to them to open up discussion. Then be quiet, nod attentively and listen to what they have to say, then listen some more, then pause to think and respond accordingly.

 

[Aspire Utilities]

I agree with the above estwig, to me that's a buying signal, be strong on your brand and the benefits of having you work for them, with the added note that once your a customer I can take discounts, etc on board via referrals etc, but I always look at the profit margin, as if you can do slightly cheaper without it being a negative to yourself, get the business in and move on to next customer , as something is better than nothing in your pocket.

I had a similar thing with a prospective quote, and he was trying to haggle me down and stated he didn't have someone to look after his telecommunications as his a sole trader, I advised him this is what I was trying to do, as an telecom account manager, finding him the best solution so he can deal with other areas of business, which is why I wouldn't reduce his proposal offer as he is getting me for free. Business meeting Friday to sort out all coms, with no discount on services.

 

[estwig]

Aspire has it, so there sales people on this forum and not just the blinkered take it or leave it business people.

Another straight to the point answer to the price question is: I need to allow the time to do your project/work justice and take care of this for you. This is last resort after LISTENING TO YOUR PROSPECT and trying to draw any objections out.

 

[David White]

My response to a statement like that would be "In a couple of weeks if I award the job to you but I need to get a couple more quotes first"

This type of response then at least helps me confirm you are likely more of a budget concious prospect without an urgent need for the services. If I am desperate for the business I may then use this opportunity to ask you if you would choose my service today if I could offer £x rate, but otherwise I would leave my card and waste no time following up unless the project was a major one.

It all depends a lot on the project scale amongst many other things.

 

[Ian J]

This type of response then at least helps me confirm you are likely more of a budget concious prospect without an urgent need for the services. .

Aren't most people concerned to know that they are paying the going rate for a job to be done as we all know that tradesmen's quotes can vary wildly and not necessarily anything to do with the quality of their service

 

[David White]

Would you do that on a job priced up at a couple of hundred quid?

 

[directmarketingadvice]

I priced it up on the leaner side as i suspect this will one of many jobs they need completing,

Just tell them that.

Tell them that you already quoted them a price that's below what you'd normally charge, because you suspect they'll need other jobs in the future. You want them to experience the quality of your work, so you quoted them a low price to get this job.

So, unfortunately, you can't go any lower than you've already gone.

Hope this helps,

Steve

 

[Matteld80]

Check this book out... Totally changed the way I price and deal with price objections...

Dan Kennedy's - No B.S. Price Strategy: The Ultimate No Holds Barred Kick Butt Take No Prisoner Guide to Profits, Power, and Prosperity

 

[James @salescoachworld]

People these days fall largely into two camps - transactional buyers and consultative buyers.

They either want something doing with no hassle for the cheapest price, or they would pay extra to get the job done correctly, on time, with advice along the way, etc. I'm sure all people in the trade have customers in each category.

If someone is asking about price, it is (usually) because they don't see the job that needs doing as something that each contractor could do much better than the other, so the way around this type of objection is to show them much more value than anyone else that they would see.

If you are fixing pipework, or something like that, then price is going to be a huge factor, and showing value won't help your situation too much, but if its for something like a conservatory build, then usually price isn't so much of a factor.

e.g. If there are two builders, one who has never done a conservatory before, and quotes 4k, but a builder who specialises in conservatories quotes 5k, most people would choose the latter.

So, to answer the question in shorter form, price is a factor for more crucial things that isn't on display/will not cause a danger if fails, but for more ornate, showy-offy(?) things, value, experience and a consultative experience is more valued.

And use this line if people ever ask you about another contractor you're up against:
"They're not as bad as some people say they are" - works all the time.

Hope that helps.

 

[IanG]

If you think there's more work in the future that's a reason to stick with your quote, not lower it.

 

[Explainaboom Videos]

Are there any sales people on this forum?

Can you do anything with the price is a great question to be asked, it means they want what you have, but they just need to justify it to themselves. They need to be sold to a little more, they perhaps feel what you have for sale is a little expensive and they need you to explain what a bargain it really is.

You have a clear cut buying signal and objection in front of you, happy days!!

I'm sure we can work something out, have you got something in mind? Is the correct answer to the prospects question. Take the emphasis away from price and money and fire the question back to them to open up discussion. Then be quiet, nod attentively and listen to what they have to say, then listen some more, then pause to think and respond accordingly.

Nail. On. The. Head.

When this question is raised, they WANT to do business with you. They just need something small the tip the scales in your favour. They need to feel like they've 'won'. You don't even have to actually lower your price, you just have to pace them through the objection! Come from a position on understanding their problem (not wanting to spend too much), and gradually build on how paying your fee is already a discount figure (I'm gathering from what you've stated), and show them in the long run, paying your fee will ensure they're getting a higher quality service - i.e. not a botch job that will cost them loads in the future!

I hope this helps.

 

[Ian J]

And use this line if people ever ask you about another contractor you're up against:
"They're not as bad as some people say they are" - works all the time.

Funnily enough they said the same about you

 

[Simon.P]

hi,
thanks for all the further postings and sorry for the delay in replying.
its a good point that it was a buying signal, although the gent also said he was going to get some other quotes in and might call me back. he actually said it was one particular job that was higher than he was expecting (it was essentially about 4 pieces of work although he wanted the quote to price them individually). i then advised he the quote was for all the work to be carried out, so when i finished one part, move on to the next - not one bit now, another in 2 weeks etc. a big overhead for trade is travelling to the job, associated fuel and lugging tools in and out of the van. those 4 jobs o quoted him for is one linear process for me and was quoted for that.

 

[HazelC]

If you go lower on your price they will wonder why you didn't offer that price originally, so always try not to 'do anything on the price'.

I offer a lower level of service, in terms of a guttering man you could say the products you use are the best quality, but you could use cheaper versions which would take the price down to ... - they are likely to still go the more expensive option but it's better than you giving a straight 'no'.

For example, we do social media management and when asked if we can do anything on price we say we can let them reply to tweets and replies and just post on the platforms for them?

Just changing the service saves you saying No and means that you are confirming you're worth the money!

 

[HazelC]

Funnily enough they said the same about you

Ha ha - that made me laugh, I will use that! lol

 

[Simon.P]

thanks hazel, thats a good point about price reduction and one that drives me mad with insurance renewals... letter arrives £490 to renew. Shop around and find the same policy for £340 with someone else. Call existing provider to say i wont be renewing because a competitor is doing same policy for £340 and then they say they can match. Sorry but if you could do for £340 why did your letter say £490. lost sale

 

[HazelC]

thanks hazel, thats a good point about price reduction and one that drives me mad with insurance renewals... letter arrives £490 to renew. Shop around and find the same policy for £340 with someone else. Call existing provider to say i wont be renewing because a competitor is doing same policy for £340 and then they say they can match. Sorry but if you could do for £340 why did your letter say £490. lost sale

That's exactly my point I'm glad I made sense x

 

[Simon.P]

That's exactly my point I'm glad I made sense x

perfect sense, and its highlighted something that i will never get in to

 

[Thermodynamic Man]

I always give a quote and tell them please not to call me for a lower price later on. I tell them that if I could have done a cheaper quote then they would have had that now. My quote is based on a top quality job using top class products at a very competitive rate. I also tell them that I am sure they could get a cheaper price if they got Billy off the bombsite to do the job but I am sure that is not what they want is it?
Failing that then try going in at a slightly higher price, say 5%, then work out a way that you can justify deducting that increase without losing any cred.
To be honest that is something I tried and was not happy with. Go in at a fair price, explain to them why your quote is what it is..... don't make cost an issue... you, your product and your skills are what counts. Go get em dude

 

[Simon.P]

good post thermo man, cheers!

 

[StanleyPCS]

What I always try to remember in this situation is that some people are brought up to try to "haggle" when purchasing things, most of the time they will still use you if you don't move on the price but for some reason it makes them feel better to ask, as if to stop them from from thinking "I could have got this cheaper" in the future.

I am also in the services industry and have people try to haggle me down over services that are as cheap as £45.00, I never ever move on price I simply tell them that my prices are non negotiable.

 

[Ian J]

I wonder how many of the same people here who have grumbled about being asked if they can trim their quotes have bought a new or second hand car without trying to haggle over the price

 

[Simon.P]

I wonder how many of the same people here who have grumbled about being asked if they can trim their quotes have bought a new or second hand car without trying to haggle over the price

that is a very good point Ian, however i am not sure if you would agree that some things are deemed negotiable (rightly or wrongly) whereas some are not.
For instance, kitchen places are legendary for giving absolutely ridiculous prices instantly and the game begins on haggling. used cars is another one. However, i have never seen anyone trying to battle at the supermarket or after a meeting with a solicitor or private appointment with a doctor.