Tradesmen - how to deal with that "I've had a lower quote" email?

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Tradesmen - how to deal with that "I've had a lower quote" email?

47 posts & 35 voices | Started 2 years ago by deadlydarcy | Latest reply from NZCol

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deadlydarcy - Member

So, I'm not the busiest man in the world...been a quieter start to the year than others but I've got plenty to be going on with. I quoted a fair price for some work a few weeks ago - I'd really like the job, and it's for an architect so a chance of getting a good contact for the future. However, if I don't get the job, I won't starve.

I've hardly put my prices up in the last four years despite everything else rising - fuel, being the main one I suppose. That said, I've been a bit cleverer in where I buy my consumables, haven't had any significant capital outlay now that I've got plenty of kit - so all in all, without drilling right down to the figures, I get the feeling I'm still doing just fine.

Most clients don't ask me to knock prices off - they tend to be income-rich and time-poor, so I'm not very experienced in dealing with the "We've had a significantly lower quote" email, which I've just had. So I want the job, but I don't want to completely drop my knickers (for a client who's not short of a bob or two either).

Comments from both sides of the divides welcome?

Please don't be mean - I'm really good to my clients, honest.

Posted 2 years ago #
druidh - Member

Not much different from a "I can get that bike/bit cheaper from CRC/Wiggle/Merlin" comment.......

Posted 2 years ago #
wors - Member

Call his bluff,

Posted 2 years ago #
Shibboleth - Member

I once haggled with a guy who was selling jewellery he'd made from a battered old suitcase when I was on holiday. Nice stuff, nothing valuable, just nice crafty stuff.

I offered him about 25% less than he wanted and he looked all sad and said "sure, ok, if you want... You can pay me that much if that's all you think it's worth. It just means I won't make anything for my time. But if that's how much you want to pay, you can have it for that..."

I ended up paying the higher price even thought I knew he was guilt-tripping me. He just did it very well.

HTH.

Posted 2 years ago #
flippinheckler - Member

Just tell them your not the dearest or the cheapest but the best and offer a very good quality personal service, and you do not cut corners, if you have some testimonies from previous clients then let any potential clients see them.

Posted 2 years ago #
tails - Member

Well have a look where you can reduce your price, to a point where you are still making a profit you feel is acceptable. then offer that, if they want lass say thanks but no thanks.

Posted 2 years ago #
supersessions9-2 - Member

You could point out the quality of the work you do, and maybe give him an idea of your costs and profit on the job. Obviously don't give him the full details, but a general idea of overheads, materials etc, prove you're giving him a fair price. Can you offer him the chance to source the materials and just charge him labour?

there's no point taking on work that is costing you money to do! If he expects too much discount, then let him go.... maybe you'll get work out of fixing the job once the cheap cowboy he's employed has made a hash of it.

Posted 2 years ago #
iDave - Member

people don't want the cheapest - they want what they want at value for money. so point out what you do that adds value for them. service, warranty, consideration while you work in their home, quick job, and so on. i mean no one here rides the cheapest bike they would find? they want a certain criteria fulfilled and then they want that to be at good value.

Posted 2 years ago #
jackthedog - Member

"Okay, no worries. It's a shame I can't be involved but best of luck with the project and remember, you get what you pay for - cheapest rarely means best."

Posted 2 years ago #
tinsy - Member

If its a competative quote, (only you would know) then thats all you can do, try and explain why your service might be a better bet than the cheaper quote he has...

Try not to use the term "ferk off knob head", substitute that with,

"I feel that my pricing was a fair and competative quote and I stand by my workmanship and quality of service, however I will massage the figures as best as possible as I would value your buisness."

Posted 2 years ago #
Junkyard - Member

Explain you would like to get repeat business with them but you cannot match the quote and if they are happy with them take it. Stress your quality of workmanship and delivering on time etc and point out that you cannot get a mercedes for the price of a Ford- Call their bluff nicely explaining you are so good that you will not be a t risk of going under without his work. Perhaps the low quote is from someone at serious risk of going under...can they take that risk etc
Your choice what to work for and nice you have that choice

Posted 2 years ago #
rockitman - Member

Tell him you can go cheaper if you can offset it against some other (future) work. Explain you're really keen to build relationships and as the other posters have said that you're not the cheapest but you are the best and you offer outstanding value for money, please let me know if you would like some references etc...

Cast some doubt in their mind (it's called "planting bombs" as they will go off later) - Are the cheaper company going to offer references, are they keen to develop a good relationship etc

Can you tell I work in Sales?

Posted 2 years ago #
bigsi - Member

Ask him/her if they want the job done well or cheaply ?

If they want it done cheaply do you really want/need to deal with them ?

Most people who go cheap end up regretting it when they have a problem

Posted 2 years ago #
iDave - Member

you could also plant seeds of doubt - 'I'm surprised to hear there is a lower quote given the cost of material of the necessary quality'

Posted 2 years ago #
deadlydarcy - Member

Thanks all. Some great suggestions there, really great. I have a good idea what to say now. I'm going to budge a teensy bit, just a gesture but feeling a lot braver.

Cheers again.

Posted 2 years ago #
deadlydarcy - Member

in a previous life I did some sales stuff. I was pretty shit at it!

Posted 2 years ago #
rockitman - Member

I don't particularly enjoy it, and have a real stigma problem with "sales people" so try to be completely transparent and the the opposite of the sales person image. Seems to be paying dividends as some how I've made it to Sales & Marketing Director so I guess I must know what I'm doing!

Good luck with it.

Posted 2 years ago #
sslowpace - Member

'Buy cheap, buy twice' as my dear old imaginary granny would say.

But as a case in point, 5 years ago our boiler went pop and needed to be replaced. The company we used wern't the cheapest, but they were the best at customer service, explaining options, better options, ways to save a little money, etc. They did a perfect job, so much so that they will be replacing the heating system in our new house.

If you do want the job, sell youself and what you can offer them for the price you have quoted.

Posted 2 years ago #
spacemonkey - Member

Call him up and be honest with him. Ask him to clarify what he's getting for his "significantly lower price." It's possible he's getting a lesser solution, and perhaps one that's better suited to him - so it's up to you to amend your own offering to suit. Then again, he might not be getting what he wants, but might think he is. Blah blah - lots of possibilities.

Just call and have a chat. Find out what's right for him and see what you can offer. Plenty of customers have opted for the cheapest solution and ending up not getting what they wanted/expected. Ultimately it's about understanding the customer's needs.

Posted 2 years ago #
boblo - Member

rockitman - Member
<snip> Seems to be paying dividends as some how I've made it to Sales & Marketing Director so I guess I must know what I'm doing!

oh poor you... S&M <sigh>. Could be worse tho, you could be one of us middle aged IT wallahs that seem to inhabit these ere parts...

Posted 2 years ago #
Scienceofficer - Member

Don't lower your price unless you can afford to. In these difficult times, a 'significantly cheaper price' means the other guy is trying to buy the work and probably will make no money off it.

If you go down that route its a steady grind into working for free and ultimately, bad times. It happened to my last outfit, and is the reason I'm (along with 30 odd other people) redundant.

Talk to the guy and tell him you why you think it can't be done that cheap. Alternatively, you might want to offer a guarantee on the project completion or something similar.

Unfortunately, it comes down to the price though. They won't see a problem like quality or certain completion date as a benefit unless the other guy gets it wrong. Free market economy innit.

Posted 2 years ago #
geoffj - Member

changed my mind, nothing constructive to add.

Posted 2 years ago #
deadlydarcy - Member

The job is wooden flooring - so it's mostly labour I'm selling. I know I'll do a better job than the other guy, but I hate to directly (or indirectly) insult his abilities as it can make me sound arrogant and I don't think it's very professional...I always feel I should get the job on my own merits without trashing the competition.

However, some of the suggestions above have given me a good idea of how to word my response.

Posted 2 years ago #
hels - Member

He wouldn't have emailed you back if he didn't want you to do the work. If he was happy with the other guys quote he would have taken it.

He might also be lying.

Posted 2 years ago #
thegreatape - Member

He wouldn't have emailed you back if he didn't want you to do the work. If he was happy with the other guys quote he would have taken it.

That's what I thought too. If so, you dropping your price a little bit might do the trick, if he wants you to do it and feels like he's got the best deal.

Posted 2 years ago #
joolsburger - Member

I'd phone him and discuss it. Ask him where he'd like to get to price wise and see if you can meet him somewhere in between. Reading between the lines he wants to use you otherwise why the second chance? I think any negotiation is better served face to face or at least on the phone. I get this all the time in recruitment and tend to stick by my original rates unless there is a promise of more to come (in writing).

Posted 2 years ago #
thebikechain - Member

I used to be a 'tradesman' of sorts.

Rule 1. Never ever devalue your own labour. If you do, the customer will value it even less than you do.
Rule 2. Follow rule 1.

Posted 2 years ago #
Marmoset - Member

Ask him if the other qoute includes a detailed specification - he might not be comparing like with like and your quote may look a lot more attractive after that...

Posted 2 years ago #
oldgit - Member

If you know the going rate/prices and your customers getting a far cheaper quote, can you not tell if the other guy can rally do it at the cheaper price.

Thing is there are a lot of people who go in cheap just to put food on the table, they're not interested in becoming a profitable business. You'll find you are probably up against on of those guy'skis.

Ask your potential customer if he knows what he is getting for the price, I'm a little surprised that an architect isn't on the ball.

Posted 2 years ago #
DT78 - Member

Personally I'd try to counter offer, by suggesting an area where you could do less labour/cheaper materials etc... to bring the quote down to a similar ballpark.

I think given the choice of having something slightly cheaper but not good quality most people would stump up the extra cash.

tbh it sounds like they are just trying it on a little to get a better deal. I do this all the time, I never accept the first quote even if I've already made my mind up on the person. If they aren't willing to budge a little (as a gesture) it's not someone I'll work with. It's saved me thousands over the years.

Posted 2 years ago #
leggyblonde - Member

Thing is there are a lot of people who go in cheap just to put food on the table, they're not interested in becoming a profitable business. You'll find you are probably up against on of those guy'skis.

How can a job put food on the table if it doesn't make a profit?
And what is a guy'ski?

Plenty of people are "buying" work in my industry. It's not worth going lower than what you can afford otherwise the client will always expect those rates. As has been said before, mention the quality of what you do etc etc

Oh, and DT78, do you haggle at the pub? Unless the client is a regular, I don't budge on a quote. If people ask it's often a sign that they're going to be difficult

Posted 2 years ago #
trout - Member

I thought you were in flooring Darcy tis a bastard time for quality workmen with so many cowboy "fitters " around prepared to cut corners to get the job .

Architex are the worst to work for they want a quality job doing at a cowboy rate and then when it goes tits up it is your fault even when you told the bastid the floor was a bit high on the RH to accept wood but they dont want to pay for the epoxy DPM and it must be finished on monday even though you have been held up by all the other trades . so you end up working at the weekend for the same quote .

Sorry Rant over

just remember this

“The bitterness of poor quality remains long after the sweetness of low price is forgotten” – Benjamin Franklin

If you are as good as you say then stick to you guns and walk away

PS I could do with a bit of work whats his number

Posted 2 years ago #
Android - Member

If you are any good, you must have a satisfied customer that you could take him to.

Point out to him the quality of the product you will be fitting and even show him the parts / labour breakdown. If he can see that you are charging a fair labour rate and the quality of your materials he will be able to see where the other guy must be making savings.

Presumably you have insurance and warranties that you can offer, i.e. the unseen bits that you may take for granted, that the other guy doesn't have, but the client doesnt know about as neither of you have mentioned it. Bang on about experience, make a small goodwill gesture and let him choose.

Posted 2 years ago #
oldgit - Member

There are guys that will earn just enough to pay for the materials (though in some cases they won't pay, or are using nicked stuff)with just enough left to buy dinner that night.
They might not be paying taxes, buying tools, renting premises, advertising etc etc.
I used to see it all the time, though far less so lately and always within ethnic groups trading and selling within those groups. Say what you like about that comment, just speaking from 35 years in the electrical trade.

Posted 2 years ago #
mr bump - Member

If you have worked out your price then stick to it.
The good old 'ive had a lower quote' is one i hear all to often.
More times than not its a customer trying to save even more money, if you dont need the job desperatley stick to your price.
Oh and the whole 'Im the archetect and there is a possiability of more work' take that with a pinch of salt too.
If i had a pound for the times ive had that sent to me i wouldnt be at work now id be out on the bike!!

Posted 2 years ago #

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