# Are you too expensive?



## Yianno (Dec 11, 2014)

Hey Fella's

Do you ever get the feeling that your services are too expensive? From the past 3/4 jobs I've quoted I've been told that I a too high. Some have been saying I am more then double. The one job that they never said I was too high, they said they would buy the tiles and adhesives and they on their own bathrooms costs "x' amount for what we want to do so by the time we get the rest we will be at "x". Fair statement.

Thoughts?


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## Brad Gunn (Aug 18, 2015)

I've never felt my services were too expensive. 

Sometimes people can't actually afford my work. Sometimes they hire a contractor who bids lower (perhaps he's smarter than me, perhaps not).

Every one here says the same thing:
Bid the job to cover all of your costs, and make a profit!


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## digiconsoo (Apr 23, 2012)

I'm not too expensive.....

But I meet a whole bunch of cheap bas&%ds on a regular basis.


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## avenge (Sep 25, 2008)

No all the good ones don't get paid enough.


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## antonioooooooo (Mar 8, 2010)

I'm a bargain.


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## 480sparky (Feb 1, 2009)

I more often get the feeling I'm not expensive enough.

But I also run into one of the following types more often than I care to:

1. The "I want cheap, not good or fast" type. They're not my target market.
2. The "I still think it's 1960" type. They need to get with the times.
3. The Bid Shopper. Will continue to get bids until they find someone within their budget.
4. The Haggler. Will automatically default into negotiating a lower price.
5. Want a price for A, B and C. Then expects D, E, F, G and H to be included after work starts.
6. And the ubiquitous "Gimme a low price and I'll have tons of work for you" ploy. Sorry, Homie don't play dat.


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## dsconstructs (Jul 20, 2010)

If I didn't hear I'm too expensive on a regular basis from some of the prospects......then I wouldn't be priced well enough to actually stay in business.


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## TNTRenovate (Aug 19, 2010)

Was does too expensive mean?


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## SectorSecurity (Nov 26, 2013)

If I'm to expensive I'm to expensive I don't have time to start playing the well remove this and let me buy this to save money game.


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## Mr Latone (Jan 8, 2011)

What can I say? The chit I do costs a lot.


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## BamBamm5144 (Jul 12, 2008)

I deal with wild pricing on a daily basis. When someone chooses to hire someone else, I always ask why. Of those who do reply, no one has ever said because the other guy was more costly, it's always cheaper.

This past week, I bid a job tight because I wanted it. I lost it by about $1600. Last night I signed a job that's half the size of the one I lost for $2800 less than the one I bid tight. If I would've bid that first roof at the price I bid the second one at, I would have been over 6k more than the other guy.

If you're more expensive than majority of guys you bid against, you're price right. If your prices are in line with those who have been around decades, you're on the right path.


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## TNTRenovate (Aug 19, 2010)

Price for the clients you want.


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## digiconsoo (Apr 23, 2012)

TNTSERVICES said:


> Price for the clients you want.


I am trying, but I can't find any of the trillionaires I want.:no:


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## Peter_C (Nov 26, 2014)

Put on your sales hat. "I am not going to be the lowest bidder, but I won't be continually asking you for more money after a low ball bid, and I do quality work". Expand on that of course, but you need to put together a nice presentation for almost all your potential clients. This needs to be brought up when delivering your quote before they start comparing it to other quotes.


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## TNTRenovate (Aug 19, 2010)

digiconsoo said:


> I am trying, but I can't find any of the trillionaires I want.:no:


They are out there...you may have to move to Dubai.


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## charimon (Nov 24, 2008)

Yianno said:


> they said they would buy the tiles and adhesives and they on their own bathrooms costs "x' amount for what we want to do so by the time we get the rest we will be at "x".


I don't know what this means. Could you restate this so there is no confusion as to what you are trying to convey to us. I think I know but I do not want to guess. 

I ask this because there is a great answer for the issue if I understand you correctly.


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## Warren (Feb 19, 2005)

My goal is to raise my prices every year, and slowly force myself into retirement.


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## JBM (Mar 31, 2011)

send them this


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## Calidecks (Nov 19, 2011)

I tell people often, "if you think I'm expensive wait until you hire the cheap guy"


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## Metro M & L (Jun 3, 2009)

TNTSERVICES said:


> They are out there...you may have to move to Dubai.


I'd remodel tiny houses and manufactured homes for minimum wage before I worked for a trillionaire from dubai.


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## Spencer (Jul 6, 2005)

...


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## TNTRenovate (Aug 19, 2010)

Californiadecks said:


> If my customers aren't crying just a little about price, I'm probably too low.


This probably should be moved to HH, but I always regret a price when I get a quick response that the estimate looks good and they want to move forward right away. I always feel like, "Am I missing something?".


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## SamM (Dec 13, 2009)

TxElectrician said:


> Too expensive? Too cheap? The mechanic that I use has a 4 or 5 bay shop, been in business for over 20 years. His prices are are close to half of the dealership in town for repairs. Both stay busy. Is he a hack?


Pricing has very little to do with hackery unfortunately. The dealership I bought my truck from has hack mechanics who charge twice what my mechanic charges. 

I've had service at the dealership and they always miss something.


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## TxElectrician (May 21, 2008)

Spencer said:


> ...


Bob? Is that you?


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## Spencer (Jul 6, 2005)

TxElectrician said:


> Bob? Is that you?



Haven't seen much of bob lately. 

I removed after tnts comment. Putting in depth pricing strategy info probably isn't the best idea in a public space...just in case.


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## tedanderson (May 19, 2010)

TxElectrician said:


> What can I do to my house for $2,000 that will increase it's value $20,000? I will do it today.


Prewire the entire house for structured cabling and pull 4-strand fiber to every room.


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## TxElectrician (May 21, 2008)

tedanderson said:


> Prewire the entire house for structured cabling and pull 4-strand fiber to every room.


I doubt that would add any value where I am. Not knocking what you do, just no need for it here.


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## Pure Integrity (Jan 8, 2016)

What I am quickly learning is that, if you have your overhead covered, your profit is reasonable (8-10% range), and you aren't overcharging for your hourly labor rate, then you're fine. I know from experience that if you don't charge THAT amount at the very least, you'll find it very difficult to stay in business in the long run. Sure, you'll get more jobs now, but how long can that last?

I've also learned that many people will try to knock the price down using a variety of tactics. However, their tactics tend to have one thing in common... FEAR. They want you to feel afraid of not having enough work, or having priced too high, or being unreasonable, or of not getting future work from them. I've also learned that if you fall into this trap, these customers will try to take more from you.

Bottom line: Stick to your guns. If you can honestly say that you've examined all the numbers and that it's FAIR (very important word here), then you have nothing to worry about or be ashamed of.


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## TNTRenovate (Aug 19, 2010)

Fair is a four letter word. It only needs to be fair to you. If you want to make 30% profit, and can find people to pay it, how is that not fair?

I'm not too expensive, you just can't afford me.


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## Pure Integrity (Jan 8, 2016)

TNTSERVICES said:


> Fair is a four letter word. It only needs to be fair to you. If you want to make 30% profit, and can find people to pay it, how is that not fair?
> 
> I'm not too expensive, you just can't afford me.


I would agree with that for a contractor who is in very high demand.


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## dsconstructs (Jul 20, 2010)

Just finished a smallish wainscoting job yesterday, this customer was referred to me by her neighbor. I gave her a quote and she said several times when discussing the details that she couldn't understand why it was so expensive. I didn't respond other than to say "I know what I'm in for on this" 

It didn't take long into the first day that she was already applauding the work, and when we were done she went on and on about how impressed she was with the whole thing....and gave us each a $50 besides happily writing the check for job. Next we'll be working up a estimate for her kitchen remodel. I won't be shocked to hear the same comment about how expensive it is :laughing:


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## Spencer (Jul 6, 2005)

I was with a group of people a while back and one of the people whom I really don't care for made a comment about "spencer, you'd be to expensive to do this..." I'm saving the "you jus can't afford me" line for next time. I swamped after all so how can I be to expensive.


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## TNTRenovate (Aug 19, 2010)

Pure Integrity said:


> I would agree with that for a contractor who is in very high demand.


You'll never be in demand if you don't price yourself out of price shoppers. 

I know it sounds backwards but one of the most valuable lessons I learned in this site is to price yourself on the clients you want. You will have a bit of a slow period while it catches up but you will not regret it.


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## Spencer (Jul 6, 2005)

TNTSERVICES said:


> You'll never be in demand if you don't price yourself out of price shoppers.
> 
> I know it sounds backwards but one of the most valuable lessons I learned in this site is to price yourself on the clients you want. You will have a bit of a slow period while it catches up but you will not regret it.



One of the best pieces of advice I got on here when I started was that basically "price shoppers are a black hole from whence you will never escaped if you get sucked in. If you start with them it will take years to get free."


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## Creter (Oct 13, 2009)

TNTSERVICES said:


> You'll never be in demand if you don't price yourself out of price shoppers.
> 
> I know it sounds backwards but one of the most valuable lessons I learned in this site is to price yourself on the clients you want. You will have a bit of a slow period while it catches up but you will not regret it.





Spencer said:


> One of the best pieces of advice I got on here when I started was that basically "price shoppers are a black hole from whence you will never escaped if you get sucked in. If you start with them it will take years to get free."


There is a lot of truth to both of these quotes. :thumbsup:


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