Hi,
maybe a slightly weird one this. Went out to meet my current client today after a call yesterday (we are 3 weeks into a 4 week build)to answer a few quick queries before final week. Anyway it turns out that actually they wanted to talk about the quote, as they had been to my stone supplier to check they were sure about it before proceeding, and had been given a price which was less than I had quoted them (because I have added my margin on). I fully itemise quotes and add a margin onto everything (labour and materials) so it is possible for them to get some things cheaper themselves if they want to go to the hassle of doing that but I explained why I was charging extra (Insurance, van, advertising etc) and they just don't seem to get it. They are angling for a reduction, partly based on the supposed recommendations they can make to friends, family etc if we maintain good relations (they are completely happy with the work we have done). There is no real problem in getting the money because we have a written quote and clearly they have agreed as we are 3 weeks in already but should I take a hit in the hope of more work?
And should I not be quoting this way? They seemed to think that others quote materials at cost and lump everthing else in with labour. I have had no other problems like this in over 7 years trading.
Advice would be much appreciated.
Rick
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mine get a total fixed price and that's it. I really don't know why people open themselves up to problems by showing more than that. How you show it and price it is up to you. I'm sorry but they've agreed a price and that's it. I'm sure you can show umpteen other things on the job where you've made no profit or a loss, but I bet they wont want to make the difference up on that. As for the promise of other work, deal with what's in front of you. If you do a good job some come back, others don't, but promises don't pay bills.
I took some advice early on which was 'always beware the promise of future work'. I am sure you have seen this potential recommendation for what it probably is. I may be a bit cynical here but why would they leave it until right now to check the stone? Are we saying that they did not know the precise material you were using? It is purely a cost issue, they want to see how much. We always seem to be justifying margin on products to customers, such as the plants thread recently. I personally would bill all materials at cost and make all margin under labour and fuel, it's not an ideal situation but it avoids all this back foot fire fighting.
Thanks for the replies. I agree with both of you, probably just needed someone to give me some reassurance.
Thermo, itemising quotes seems to work well for us because it gains customer's trust and I feel I can justify the prices anyway but I know what you mean about opening yourself up to some unnecessary problems . I just thought it was odd because they seemed to think we had deceived them in some way because we hadn't put all the profit in the labour section.
leave that job for a week , do other work and let them sweat.
its called being an indian giver? you dont agree a quote and then back-track ! would you.
I just cant believe some people/clients.
id stick another 10%on for extra time/ trouble/thought or unforseens in your smallprint? on the total price , or do 10% less finishing work / tidying up etc !
recommendations work both ways !
id always do a tiny extra job as a favour but not to knock off £10 once agreed and never have been asked..
promises, promises, promises - if i had £10 for every person who said they had 'more work'
Thermo said:
Thanks for the replies everyone. Looks like I have a nice conversation to look forward to in the morning then.
Cheers,
Rick
Personally I have never had a customer query a price part way through or at the end of a job, but this is the second thread with a similar theme in recent weeks. Are we seeing a 'new type' of customer emerging? If so then we all need to be aware and get it right from the start.
I think with the last thread, there were questions regarding the amount of 'profit' the contractor was adding on and what is fair and what is excessive. But in the end an agreed price is an agreed price.
I have always given an 'all in' price and add 15% on materials.
I never breakdown costs. Learnt this a long time ago. As said you just open yourself up to issues.
Try giving a fixed price on your next quote without a breakdown. I bet you only get asked once or twice a year to break that cost down.
Mark
Hi Richard
Are you buying the material at a trade price? If you are then your client is unlikely to be able to get the same terms, or if they are then your supplier isn't being fair.
"I was charging extra (Insurance, van, advertising etc) and they just don't seem to get it".
It's best to keep it straight and just call it handling or collection and delivery. If you're charging the rate you need to make a profit then the overheads your mention should be included by default.
In the future, make sure that your terms and conditions have something along the lines of:
'All deliver, collection and handling of materials is chargeable to the client at going a rate' You can expand these terms and conditions to suit the job. Try to envisage all potential scenarios the job might throw up.
Furthermore, if you've given a client time to decide on a/the finished material then make sure you leave a sample of the proposed materials with them.
Lastly, make sure that if you are itemising out the materials that any profit you make is reasonable. In basic terms, any profit should be no more than the difference between what you can buy it for at trade and what a client can purchase it for at retail prices.
If the profit doesn't cover the handling fee then make sure you make provision within the labour element of the project.
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