Pricing Psychology

[WesD]

More thoughts and ramblings . . .

 

Has anyone taken notice on what works when pricing or is it just me over thinking. 

 

We all know what we need to earn for the day to work for us but we don’t or I certainly don’t price a big job on a day rate I price it to what I think the job is worth. 

 

Anyway getting to the point when you price do you round up, finish on an even number or odd?

 

I find commercial customers don’t like even rounded numbers ie £800 and when I price like that I lose jobs however if I price similar job to a commercial at say £825.70 I normally win the job. 

 

Domestics I find love rounded numbers be it £600/£650/£700 etc etc 

 

Anybody else noticed similar or given pricing any thought?

[Vespasian]

Just a guess, but I expect commercial customers might see 800 quid as you rounding up in your favour, putting their backs out...

 

 

On the other hand, if you say 350 to a domestic customer they may suspect you've not tried to fleece em by rounding up to the hundred... thus gaining some sympathy...

 

all a guess mind, but it sort of makes sense.

 

 

 

[Mortimer Firewood]

Most people l know who get contractors in get three quotes and go for the middle one every time. 

 

[WesD]

1 hour ago, Vespasian said:

Just a guess, but I expect commercial customers might see 800 quid as you rounding up in your favour, putting their backs out...

 

 

On the other hand, if you say 350 to a domestic customer they may suspect you've not tried to fleece em by rounding up to the hundred... thus gaining some sympathy...

 

all a guess mind, but it sort of makes sense.

 

 

 

I agree, does anyone else think similar and price accordingly?

[Chris Day]

I've stopped thinking about psychology of quoting as it were. I work out how I'm going to do the job work out I want/need to do that put that price and see what happens. 

 

But now you've made me question this and think, so I have a headache! Guess I'm destined forever to the little league.

[WesD]

2 minutes ago, Chris Day said:

I've stopped thinking about psychology of quoting as it were. I work out how I'm going to do the job work out I want/need to do that put that price and see what happens. 

 

But now you've made me question this and think, so I have a headache! Guess I'm destined forever to the little league.

Thing is with pricing to what you need is you could be massively undercutting yourself! 

 

I personally price to what I think the job is worth and everything else sorts itself out ie if I do 3 trees in a day and I had a day rate or I needed 750 per day do I only charge 250 per tree knowing the price should be closer to 500 per Tree? No I don’t I put them to the value I think so I could potentially turnover 1500 that day but tomorrow turnover may be 250 but as  I said it usually sorts itself out for me. 

[Chris Day]

I get you Wes and I rarely work out quotes on day rate but what I think it's worth. The biggest dilemma for me is postcode, some places people have money so you can price properly and get a fair price for us and the customer, many areas near me people don't have any money so you have to quote leaving tight margins and work fast. 

 

I drove through a village near me yesterday and noticed the tree work was very shoddy, this village Bawtry is very wealthy for the area. It made me think that I've noticed similar many times and the less scrupulous practitioners  of our trade must target wealthy areas, we may question their morals or abilities but their business acumen is something to behold!