Price Breakdown?

Ted_9 · August 2006

That's easy:

Parts
Labor
Tax

Total.

That's what I give when asked.

EDIT: For the record, I do give a good description in my contract/proposal.

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JohnNY · July 2006

Price Breakdown?

Seems I get this request more and more, and I haven't come up with an answer that the client and I can both live with. For example, I just submitted a bid for a very small (To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"

J.C.A._3 · July 2006

That's easy !

It's either Yes, or no. If they say no...you move on to the next customer bid.

When they call you back to fix it, make sure you don't back down from your rate. It took YOU to know what your cost for doing business is, not their second guessing what it takes...

"This IS what it costs". When it becomes a crime, we're all going out of business. (like Dan says...we know which switch to throw!) Stick to your guns, and direct then to the video section for the latest, (HILARIUOS!) post.

Nuff said. Chris

REF · July 2006

Great Question

I think most customers are really trying to keep us honest. So, when you are a good contractor it seems a bit insulting when someone asks for the details of price. I never ask for breakdowns. Just a yes or no from me is what you will get. I tell our customers the price includes parts and labor. If the customer pushes harder we back away politely and move on. One important note: in your quote list as much as possible. Take the time to explain what each line means. This will help justify the price to customers.

Remember customers (for the most part) are lay people, and haven't a clue about our trade. It pays to explain the job in detail. I even get specific on the quality of oil filters being installed.

Part of our responsibility is to sell our products and services professionally. We get a lot of technical training offers, but sales training seems to be a taboo. I think it is important to be a technical sales person.

I hope this helps.

Respectfully,
RE Fox

Cosmo_3 · July 2006

Yup

Parts labor if I feel like giving it. But usually not. Here is my price if you don't like it then why should I spend more time on a customer that already has a price in mind, and just wants to see how Joe Schmoe's material and equipment compare to my Quality materials and equipment. Then the customer can say...listen use this other brand and you got the job!

Meanwhile I am supposed to spend time to split things, just to be told it's too much?

Yeah Right

Cosmo

Cosmo_3 · July 2006

there is a list

Jamie Pompetti made I think a while ago that listed everything we have to pay for.

Cosmo

Scott Kneeland · July 2006

PROFIT?

Are you figuring profit on material cost or selling price? that is a huge difference. A 35% markup on $100.00 cost is $135.00 however a 35% markup on selling price is $153.00 this is what determines if you will be here next year.

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Mad Dog_2 · July 2006

Then give them the breakdown.............................

and watch them wither.......Jim Pompetti had a great one he posted a few weeks ago. I'll try to find it for you. Also, our invoices have a nice explanation of ALL the costs that go in to our pricing. It SHUTS THEM ALL UP: "........oh, ok, I get it....yeah I guess you have to give health benefits, Comp, training, holidays. Most people in the business world understand it. Occasionally we get a real civil service blue collar idiot that REFUSES to "understand." They have to be "beaten" over the head with very basic logic: "...hey, Joe how much do you think your boss/union bills out an hour for you? They get the picture. I'm with ya Dave, it gets harder EVERYDAY. Mad Dog

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hr · July 2006

Give them

a copy of the work sheet you use to determine the selling price. The back pages of our flat rate books had the breakdown for all the tasks. It was available for all to see.

If we built a bid for something not in the book, which was common, like boiler replacement, that too had a calculation sheet.

With experience you can usually gauge the shopper that is genuinly interested and the one that is just shopping for the lowest possible $$. These typically just want to see and hammer you over your hourly rate.

I'd never write off any customer with just their first question regarding a breakdown. Many truely don't understand the cost of services rendered at their doorstep!

But then again I wouldn't spend an hour defending a good honest bid that I have a snowball's chance in hell of landing

hot rod

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Gary Hayden_2 · July 2006

Famous Story about Explaining the Bill

There was an engineer who had an exceptional gift for fixing all things mechanical. After serving his company loyally for over 30 years, he happily retired. Several years later the company contacted him regarding a seemingly impossible problem they were having with one of their multimillion dollar machines. They had tried everything and everyone else to get the machine to work but to no avail. In desperation, they called on the retired engineer
who had solved so many of their problems in the past. The engineer reluctantly took the challenge. He spent a day studying the huge machine. At
the end of the day, he marked a small "x" in chalk on a particular component of the machine and stated, "This is where your problem is". The part was replaced and the machine worked perfectly again. The company received a bill
for $50,000 from the engineer for his service. They demanded an itemized accounting of his charges. The engineer responded briefly: One chalk mark $1. Knowing where to put it $49,999. It was paid in full and the engineer retired again in peace.

(There is another version of this where the mechanic hits the machine with a hammer and it works)

Cosmo_3 · July 2006

Cmon Scott

153.84 rounds up to $154!!!

Cosmo

REF · July 2006

Another perspective

When do you ask for a price breakdown? When you get your haircut, or buy a new car, groceries in the market. How much does the milk cost and why? PRICE is generally the easy way out of making a buying decision. All the marketing stats in the world will tell you that price is not usually the true objection. So, we need to ask ourselves why is this person questioning the price? The solution to the problem lies there. I agree it is a competitive market out there. With the right approach you can overcome most objections and make the sale. Higher pricing or not. JUSTIFY your price and the objections will fade away.

PS..Next time you have a vehicle serviced ask them why it costs so much...we can all learn strategy.

Again...

Respectfully,
REF

Ted_9 · July 2006

Hehe

I love that.

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Weezbo · August 2006

There is a Lot of Truth to that Gary.

first time i hear these words from somewhere other than in my mind

Must be the coffee

Mike Miller · August 2006

boneheads and money

I have finally fiqured out, after much pain in the process, that my price being high enough tends to get rid of the jobs I didn't really want to begin with. If I hear that seems like a lot of money for just a little job one more time I swear I'll.... well we will leave that for another day. I tend to say that his is what it costs so that you can dial my number and get someone who can and will deal with your problem. Mikie

Unknown · August 2006

I'm not sure Dave, but I'll tell you what; if this drives you nuts, think about it the next time you do a "double quote" to pass on a job you don't want.

How is a customer supposed to know when a contractor is legitimately higher than his competition, vs just trying to give a blow-off?

Even harder when the same high class contractor does a blow-off!

Joel_27 · August 2006

Breakdown

Since we began charging a small fee for estimates I have not been asked that question once. Try charging you just might like it.

Price Breakdown?

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