Quotations!

[forestboy1978]

Hi guys, 

 

Just wondering what your views are on people negotiating the price of quotes?

 

I basically just don't need the work cos I stay under the VAT threshold each year so can only turn over 85k per year. Due to fencing materials this is easily breached so I tend to do about 40 weeks per year roughly to achieve this. I take on guys as and when I need them, basically as little as possible and turn down all work outside of 4 miles away or that I don't like the look of or don't get a good feel for the customer. Obviously my position is quite fortunate also in that I get enough work to work 7 days per week all year if that was possible. 

 

I get a lot of customers saying things like.. "I liked your approach but I was quoted x amount. Will you consider knocking £200 of the price"

 

Frankly this offends me cos we're often talking about knocking 200 off a 1500 job which is a huge cut in profit  when the expenses are say 750 and I know my industry pretty much inside out so I know the absolute cheapest a job can be done for soooo. To me this translates as.... "I know you're almost guaranteed to do a stellar job cos you have excellent reviews and portfolio and installation guarantee etc etc but Billy Bob who isn't paying tax or is throwing the waste in the forest is £250 cheaper and I pretty much know his game so I want you but I don't want to pay for you"

 

Anyway.....rant over, what are your thoughts?

[htb]

You said you have plenty of work at the prices you are charging, so no need to join the race to the bottom.

[Steve Bullman]

Just now, htb said:

You said you have plenty of work at the prices you are charging, so no need to join the race to the bottom.

Yep what he said.

 

Whats the issue with going over the threshold?  

[onetruth]

6 minutes ago, Steve Bullman said:

Whats the issue with going over the threshold?  

I'm guessing the faff of having to comply with the regs.  Isn't admin the most boring part of the job?

 

@forestboy1978 I wouldn't be offended, just say no.  You might know the ins and outs of your business, but the customer wont.  No need to explain it to them either - you'll probably still get the job and at the price you quoted for.

[Mick Dempsey]

“It offends me”

 

 

 

really?

 

 

[eggsarascal]

15 minutes ago, Mick Dempsey said:

“It offends me”

 

 

 

really?

 

 

Sounds like another snowflake.

[forestboy1978]

24 minutes ago, onetruth said:

I'm guessing the faff of having to comply with the regs.  Isn't admin the most boring part of the job?

 

@forestboy1978 I wouldn't be offended, just say no.  You might know the ins and outs of your business, but the customer wont.  No need to explain it to them either - you'll probably still get the job and at the price you quoted for.

Yeah I do say no. I did also still get a job last week. 3rd negotiation in a row though and I just can't be bothered with the email time.

 

40 minutes ago, Steve Bullman said:

Yep what he said.

 

Whats the issue with going over the threshold?  

Cut in profits and 95% of my work is domestic customers who don't get the VAT back. Margins are pretty tight. I win 90% of quotes in summer and 70% in winter. That dropped to about 60% when I was VAT registered and I earnt a lot less, especially if a job went behind schedule. 

[forestboy1978]

26 minutes ago, Mick Dempsey said:

“It offends me”

 

 

 

really?

 

 

No mate. Not really. The same as I don't mean literally it's raining cats and dogs when I say it's literally raining cats and dogs. It's the usage of a word for emphasis. I've noticed you don't have the greatest grasp of language's nuances...

[Khriss]

'No' is a fab word and often gets you more work - who is gonna bother with a contractor you can knock £200 off his quote ?? There is Always someone £200 quid cheaper - let them cut their own throat . K

[Khriss]

( Just dealt with a subsidence complaint that the plaintiff probly  saved £2000+ on foundations ...... his conservatory is falling over now - 0.5m brick pier - should have been 1.5m trench n fill )