Dean I don't want start up the post "ping pong" again but, I want to just put a few more points for your consideration. I think we may have been at slight crossed purposes, I would never ask a customer what other prices they had had at the quoting stage, only AFTER I had either won or lost the job. I do not by any means ask all my customers, just one or two every now and then to just keep in touch with the market.
When I first started up I didn't ask but then the odd customer would just tell me, I often shocked by how much more my competitors were charging, I remember one job it was a fair sized HC TD I had quoted £350 would take me and a groundie one day, I cut and chucked all the top and slabbed down the trunk , chip and timber were staying on site. My groundie back then was on £40 per day so I was making an OK wage.
When customer gave me the cheque she had made it out for £375 and told me she had got a price for my main competitor for £1000!
I was told a little story a few years ago which I always bear in mined when pricing work.
There was a man who owned a whiskey distillery, one day one of his men backs a forklift into one of the huge copper vessels that have been use for over 50 years. He starts to ring round to price a replacement, as it cannot be used in it dinged state, he is shocked to find a new one is going to cost over £500,000 and it will take 3 months to be built, plus in order to fit it they will have to remove part of the roof! so with down time he is looking at the best part of £1,000000
Whist ringing round to try and get better quotes he speaks to a guy who says "have you tried Fred ?"
he says no, who's Fred? "hes an expert in vessel repair, he may be able to fix it". Great he says how do I get hold of him? "I'll try to get in contact with him and see if he will come and see you". Please do, I'm staring bankruptcy in the face here!!
Couple of days later a morris 1000 pulls up out side the distillery and an old chap with a flat cap gets out, the owner says " can I help you", I'm Fred, he says. Great says the owner please come and look at the vessel!
Fred goes in looks at the dent and says I think I can fix it, it will be £40,000.
Great!! says the owner when can you start?
Are you happy with the price, asks Fred?
Yes, yes that great!!
OK says Fred "I'll get my gear". He goes to his car and get a wooden tool box he bings it back, opens the box, it contains only a large rubber mallet, he walks around the vessel for a good 15 minuets studying it, then he takes his mallet and hits the vestal once very hard. The vessel vibrates and reverberates for a few seconds and then the dinge bongs out leaving no trace that I had ever been there!
The owner is gobsmacked!
Fred says what the company name for the invoice?
Hang on, hand on, says the owner, I'm not paying you £40,000 for hitting it once with a hammer!!
No, no, says Fred I don't charge you for hitting it, the £40,000 is for KNOWING WHERE to hit it!!
Is Fred a conman? I don't think so!!
I feel your price should reflect the "alternatives" what ever they happen to be.
If I get asked by a neighbor of a customer to chip some brash they have cut them selves I don't think "thats going to take 10 minuets so with my wage and chipper costs that should be £5", I think "if they got a skip it would cost them £100 so if I charge then £25 its a bargain"
Just some thoughts Dean, Mate