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Pricing a job so you don't get it!

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Lucan Unlordly

Lucan Unlordly

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Feb 24, 2009
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I understand why some tradesmen will overprice a niggly job in order to avoid having to take it on, to make it worthwhile subbing out etc., but am not sure how that works when supplying simple products online.

Here's my (moan) quote of the day for some simple aluminium section from two high profile online suppliers, one who allows online ordering, the other to select exactly what you want in lieu of a quick quotation.

Order and pay online: Total inc £15 delivery = £38

Request quote: Total inc £18 delivery = £94:eek:
 
Lucan Unlordly said:
I understand why some tradesmen will overprice a niggly job in order to avoid having to take it on, to make it worthwhile subbing out etc., but am not sure how that works when supplying simple products online.

Here's my (moan) quote of the day for some simple aluminium section from two high profile online suppliers, one who allows online ordering, the other to select exactly what you want in lieu of a quick quotation.

Order and pay online: Total inc £15 delivery = £38

Request quote: Total inc £18 delivery = £94:eek:
Click to expand...
Sounds like the hot weather has got to them
 
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My brother worked for Sun Alliance for a while in the 90's, doing car insurance quotes, if they had a really risky customer they were told to just make up a huge quote off the top of their head to disuade them. He once had a 17 yo wanting fully comp on a go faster sierra, quoted the guy £10k to make him go away but he paid it
 
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IanSuth said:
My brother worked for Sun Alliance for a while in the 90's, doing car insurance quotes, if they had a really risky customer they were told to just make up a huge quote off the top of their head to disuade them. He once had a 17 yo wanting fully comp on a go faster sierra, quoted the guy £10k to make him go away but he paid it
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I knew an insurance broker with a problem like that. Managed to get a special deal from a Lloyds Syndicate. It was thought to the highest insurance quote ever.

One week later there was a claim. Berkeley Street used to house all the luxury car showrooms. They would park the Bentleys, Rolls, Astons etc in the street while the cleaners polished the floors.

The driver managed to hit about a dozen high end cars.
 
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Lucan Unlordly said:
I understand why some tradesmen will overprice a niggly job in order to avoid having to take it on, to make it worthwhile subbing out etc., but am not sure how that works when supplying simple products online.

Here's my (moan) quote of the day for some simple aluminium section from two high profile online suppliers, one who allows online ordering, the other to select exactly what you want in lieu of a quick quotation.

Order and pay online: Total inc £15 delivery = £38

Request quote: Total inc £18 delivery = £94:eek:
Click to expand...

While have never done it for such low figures I have done it for services we do not want to be involved in.
Price per person say 6 grand, average price in the area about 300.
They agreed the price but refused to refer anyone to the company. I was happy, the staff were happy and we did not lose any money.
Some of the places offering to do same work for a grand ended up massively out of pocket on refunds and penalties. Avoided that problem entirely.
 
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Two different suppliers, two different business models, two different prices.

I can think of many such examples, especially when you bring "trade prices" into it.

What's the issue?
 
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atmosbob said:
The driver managed to hit about a dozen high end cars.
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I was once playing golf at Stoke Park and hoofed my drive far right towards the spa on the 9th, so my next shot was to be a lofty lob over the top of the car park onto the green. I lined up my shot, took a deep breath and looked at all the Bentley's, Ferrari's, Aston Martins, etc in the car park... and then calmly picked up my ball to forfeit the hole choosing not to test if I was insured for such a shot.
 
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Reminds me of Only Fools and Horses.

Paddy quoted £1k to decorate the Naggs Head.

Del quotes £3k

£1k for Del, £1k for bar owner, the final £1k to let Paddy do the work.
 
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DontAsk said:
Two different suppliers, two different business models, two different prices.

I can think of many such examples, especially when you bring "trade prices" into it.

What's the issue?
Click to expand...

I assumed when I posted that readers would understand that I was referencing two virtually identical direct to end user companies selling a simple off the shelf product and that the price differential was more than significant. Sorry that wasn't clear to you.

In fact, if you can quote some of the many examples where this happens I'd be keen to see them?
 
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I either want the work or dont, if I dont want it I tell customer we are too busy, its not our type of project etc etc. That being said, we are set up to do the work we do, as long as they want something within what our business produces then the price is the price.we wont load it.If I dont want the work because they dont pay on time its pro forma or nothing, but we will tell the customer why we are doing what we are doing. Not a big fan of "gouging if we get it" pricing.​
 
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We quote very high prices sometimes as short distances are unviable

I need to send a luton tail lift van up the road turning over £4-600 a day
not have it waiting around to do a 20 mile job across Exeter at midday :)
 
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It is one of my gripes with any industry - pricing themselves out of the market for a job, I get it for smaller companies, but surely they can just say they are too busy etc?
For larger companies and retail stock, particularly online, just put it as "out of stock" if you genuinely don't have it, but you can tell when they are lying to you most of the time, and it just puts you off them for future work and it embeds in your memory that you will not only not recommend them but tell anyone to steer clear of that particular company.
 
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AW-UK said:
It is one of my gripes with any industry - pricing themselves out of the market for a job, I get it for smaller companies, but surely they can just say they are too busy etc?
For larger companies and retail stock, particularly online, just put it as "out of stock" if you genuinely don't have it, but you can tell when they are lying to you most of the time, and it just puts you off them for future work and it embeds in your memory that you will not only not recommend them but tell anyone to steer clear of that particular company.
Click to expand...

Reality my friend - Reality :cool:
 
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It is also known as ‘Resistive Pricing’ and is part of the posturing that goes on within certain Professions/Industries. An outright ‘Refusal to Quote/Bid’ (Client has been a PIA in the past, or there have been ‘Payment Issues,’ etc.) will result in a ‘Regret Letter’ – We regret to inform you that on this occasion . . .

However, sometimes it can be seen that an Invitation to Quote might be accompanied with certain Onerous Programme Conditions. Therefore, a ‘Resistive Price’ or ‘Resistive Programme’ is returned. It sends back a subtle signal, yet still confirms your willingness to bid for work in the future. It could also set the scene for a possible ‘Negotiation.’

Many large contractors decide whether to Regret, Price Resistively, or Prepare a Bid. Tenders cost contactors time and money to prepare, and there is no Consolation Prize for coming second! Therefore, resources are directed to projects with a strong likelihood of success.
 
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JEREMY HAWKE said:
Reality my friend - Reality :cool:
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Yeah, the thing is I will always find someone to do the job, so I am not really the one missing out at the end of the day, and it just, for me anyway, shows me how ignorant and rude certain folk can be and to be honest it does me a favour and allows me to avoid and categorically not recommend them to anyone in the future.
 
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AW-UK said:
Yeah, the thing is I will always find someone to do the job, so I am not really the one missing out at the end of the day, and it just, for me anyway, shows me how ignorant and rude certain folk can be and to be honest it does me a favour and allows me to avoid and categorically not recommend them to anyone in the future.
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I think your a fantastic chap but I would rather you did go elsewhere than cost me money
I would rather put the time into enjoying the weather in the garden :)
 
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JEREMY HAWKE said:
I think your a fantastic chap but I would rather you did go elsewhere than cost me money
I would rather put the time into enjoying the weather in the garden :)
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I wouldn't expect anyone to do a job that costs them money, that isn't a very good way to run a business, but if you were to say that the job would not be financially viable to your company then I would much rather that than the alternative.

You run your business how you want, but you never know who those people you don't respond to are friends with and what potential opportunities they might bring.

If you can run a business and afford to sun yourself in your back garden the kudos to you, but there is no need to be that person who doesn't respond.
 
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