# How do you handle customers who want to negotiate?



## Admin (Dec 10, 2003)

> "As a general contractor, you’re expected to wear a lot of hats. Not only are you the man in charge of getting all the work done on a project in a timely manner, you’re often also asked to bid these same jobs ahead of time. Although your typical approach to bidding may be more “take it or leave it,” you might find yourself winning a lot more bids if you’re prepared to do a little haggling." *Tips and Tricks for Handling Customers Who Want to Negotiate*


How do you handle customers who want to negotiate?

Do you have more of a "take it or leave it" approach or are you more willing to work with people?


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## C2projects (Jan 9, 2013)

Depends from job to job for me. A lot of times I will quote with a little bit of wiggle room and still feel comfortable with what I will get in the end. 

It took a long time through trial and error on how to quote properly on jobs and have been nickeled and dimed several times.

Some people just want to feel like they are getting some kind of deal. Even if it's $100.00 off a $10,000.00 bill. As long as they are reasonable I'll meet them half way a lot of times.


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## illbuildit.dd (Jan 7, 2015)

As I am not the most expensive nor the cheapest, the only option I give is cheaper materials. Other than that, no dice. Maybe if my insurance would accept less money, then we'll talk


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## avenge (Sep 25, 2008)

I've been doing this for 27 years, any wiggle room I have is usually when I get a feeling a customer will be a pain in the ass and I add to my estimate. But my estimates are always take it or leave it regardless.

The potential customers that want to negotiate are the ones I usually don't want as my customers.


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## Calidecks (Nov 19, 2011)

I have a policy to not lower my price without changing the scope. However I've been known to break my own rule. It's good to be king! :whistling:


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## TNTRenovate (Aug 19, 2010)

Haggling is for car salesmen. Discounts are for Walmart and Cosco. The only reason some still feel it's acceptable is that contractors still allow it. Imagine haggling over your steak dinner, you wouldn't think of it. The price is on the menu, that's the price you pay. So stop playing the game.

I educate my clients on the value or our services, not price. If you have a client wanting to get a better deal they don't believe that what you priced the job out is a good deal and that, like car salemen, we have a hold back (wiggle room) to negotiate. Wiggle room is a scam. I'm not a scam artist. Quote a fair price and let that be the end of it. If they get you to move your price, they own you. They are in control. They will keep asking for freebies and discounts.

The article is right about not taking it as an insult. But not for the reasons given. You shouldn't take it personal, because you are the one that failed. You failed to sell your value.

The only way that a contractor should lower his price is if he reduces the scope or goes with less expensive finish materials.

Recently I submitted a bit that was $5K higher than the other guy. The client asked if I could come down a bit. He said that I didn't have to match his bid, but if I could come down in my labor a bit. I further educated him on what makes us different and why the prices would be so different. That was a month ago. I had completely written that one off. Just got an e-mail this morning that he wants to move forward with us.

There is no need to haggle.

Are these articles actually written by contractors?


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## TNTRenovate (Aug 19, 2010)

Californiadecks said:


> I have a policy to not lower my price without changing the scope. However I've been known to break my own rule. It's good to be king! :whistling:


But usually you have a very good reason, and it's not to make someone feel like they got a deal. Maybe a job that is super cool, or one for the portfolio, or someone in need.


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## Calidecks (Nov 19, 2011)

TNTSERVICES said:


> Haggling is for car salesmen. Discounts are for Walmart and Cosco. The only reason some still feel it's acceptable is that contractors still allow it. Imagine haggling over your steak dinner, you wouldn't think of it. The price is on the menu, that's the price you pay. So stop playing the game.
> 
> I educate my clients on the value or our services, not price. If you have a client wanting to get a better deal they don't believe that what you priced the job out is a good deal and that, like car salemen, we have a hold back (wiggle room) to negotiate. Wiggle room is a scam. I'm not a scam artist. Quote a fair price and let that be the end of it. If they get you to move your price, they own you. They are in control. They will keep asking for freebies and discounts.
> 
> ...


Ive done it maybe twice in 14 years and didn't have any bad experience from it.


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## Calidecks (Nov 19, 2011)

TNTSERVICES said:


> But usually you have a very good reason, and it's not to make someone feel like they got a deal. Maybe a job that is super cool, or one for the portfolio, or someone in need.


You are correct. It's often self serving when I've made the exception.

Edit: I've been known to help people in need as well. Especially the elderly.


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## NYgutterguy (Mar 3, 2014)

If I have to drop $100 to get a job where I put a $1000 in my pocket in a couple of hours sometimes I'll do it . 

I know most on here would never lower their price but my jobs are only 2 2 1/2 hours max. We sometimes do 3 or 4 houses in a day. I'll never miss that $100 but that Extra grand is always a bonus 


Sent from my iPhone using Tapatalk


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## madmax718 (Dec 7, 2012)

We are a for profit organization. However, your pricing should reflect either market pricing, or if your charging above market pricing, you have to be clear on the marked up difference, whether it be experience or otherwise.

Floor protection, wall protection, air filtration, dust management, should all be part of the sales pitch.

Lastly, advise the homeowner the problems that can arise from not hiring licensed contractors to work on their homes.


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## Agility (Nov 29, 2013)

illbuildit.dd said:


> As I am not the most expensive nor the cheapest, the only option I give is cheaper materials. Other than that, no dice. Maybe if my insurance would accept less money, then we'll talk



I gave up on offering cheaper materials. It made jobs more frustrating for me. It's also hard to explain that things might take longer with cheaper materials and result in a less significant savings. 

Yeah, wood is cheaper than PVC but I find trimming with PVC to be a whole lot faster. 

I like the insurance line, I might steal that. 

Scope and timeline are the only things I'll negotiate.


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## TNTRenovate (Aug 19, 2010)

Agility said:


> I gave up on offering cheaper materials. It made jobs more frustrating for me. It's also hard to explain that things might take longer with cheaper materials and result in a less significant savings.
> 
> Yeah, wood is cheaper than PVC but I find trimming with PVC to be a whole lot faster.
> 
> ...


My idea on "cheaper materials" is finish. If they want painted cabinets, they might save a grand going with stain. Did they select architectural features on the cabinets? Did they selected $5 s.f. tile? There are ton of items we can reduce the expense on and not sacrifice quality.


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## sunkist (Apr 27, 2012)

call the elec company or your morgage co and ask them, Go ask mcd to change the price on a big mac, Ask your guys to work cheap this weak, Tell that customer all this then tell them to f%%k right off


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## 480sparky (Feb 1, 2009)

Simply put......... I don't.

If the price is more than they want to pay, I'll be happy (in some situations) to go through their wish list and see what they're willing to do without to get within their budget.


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## fjn (Aug 17, 2011)

I tell them I will be willing to negotiate the same day that grocery stores, butcher shops,my insurance companies for business,property,health ,gas stations,building permits,take up that practice.


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## A&E Exteriors (Aug 14, 2009)

Depends on the job and the customer. 

Example, I did a roof in February that started as a 4-5 bundle repair with a sheet or two to be replaced as well. 

Well, being every installation error possible was done in the valley they asked what the whole roof would cost. I gave a ballpark of 7-8k. Got home and final number was 8,220. Emailed the quote (owners were in Mexico on vacation) 

They countered that at that price they figured they would do the whole roof if I included vented soffitt on the upper eaves. I came back with make it an even 8,300 to cover the materials and used IKO shingles instead of my default product (Landmarks) therefore making up for the labor portion. Win win.


Small addition I did last year for a repeat client, I was more than what they wanted to spend on a 6x12 storage shed. The couple are both architects so to get it into their price range I traded $750 towords an architectural drawing in the future...another win win. They didn't try to negotiate with me, they aren't those kind of people, they understand that the price is the price.


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## m1911 (Feb 24, 2009)

sunkist said:


> call the elec company or your morgage co and ask them, Go ask mcd to change the price on a big mac, Ask your guys to work cheap this *weak*, Tell that customer all this then tell them to f%%k right off


I'm pretty certain it's not very professional to tell a potential customer to [email protected]#$ off.

I usually explain to them that my price is competitive and reflects high quality work, and politely remind them that in life you get what you pay for, and it's my experience that it's less costly to do the job property the first time...


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## Brad Gunn (Aug 18, 2015)

This post isn't for the politically correct.:no:

I ran a one man garage door service (as a side line) for years.

With no racial animus at all, I just knew, going into certain "ethnic enclaves", that business conventions and cultural norms were different than mine.

I quoted high, gave them the "discount'" - everybody happy.:thumbsup:

No, I never felt comfortable with it, but the alternative - it seemed to me - would be to set racially based boundaries and refuse to work there. :no:


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## m1911 (Feb 24, 2009)

Brad Gunn said:


> This post isn't for the politically correct.:no:
> 
> I ran a one man garage door service (as a side line) for years.
> 
> ...


Ahh, the good old customers from India...:laughing:

I know exactly how that s*** goes down, and the conversation always starts with "my friend..."


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