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How Do You Raise Your Price After A Silly Quote?

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dean11
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How Do You Raise Your Price After A Silly Quote?
#1

I suffer from optimism - consequently I look at a $70 job and think "I can knock that over in no time" so I quote $35 and get the job. Then have to do it time and time again, resenting it every time and feeling like a fool.

But what are you supposed to say ... like, "I have been doing this job for a year for what is really a rip-off price, me being ripped off by you, so now I want to make everything fair and charge you twice as much in future?"

Ugh.


Posted 28 May 2018 - 12:30 AM

crocster
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How Do You Raise Your Price After A Silly Quote?
#2

Couple of things I didn't do well or consistently when starting out but have learned to do:-

 

  • Decide on your minimum hourly rate
     
  • Leave the customer and have a quiet walk around the job when you're quoting - front to back walk around the whole job making mental notes
  •  
  • Buy a stopwatch and accurately time every existing job - time it with the catcher on - you'll get an accurate feel for how long a new quote will take and start quoting on that basis - and then start mulching wherever you can -
  •  
  • Set a minimum price to arrive no matter what the job - mine is $40 now - I have a footpath for $25 and a small front yard for $35 but they're next to existing jobs and the deal is they're cut at the same time
  • Don't be haggled down once you're decided on a price (or, if you live in an area where haggling is the way business is done, load the price with a haggle factor)

IMO you'll never get a $35 job up to $70 - anything more than a $10 raise on a lawn is a psychological barrier (unless you've got some serious sales skills I guess) - put it down to experience and get something to replace it before you drop it.


Posted 28 May 2018 - 06:47 AM

plucka
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How Do You Raise Your Price After A Silly Quote?
#3

All you can do is just be honest and say you need to raise your fee because you under quoted, but you really should have done this straight away not wait a year.   

 

I'd say doubling your fee will 99% result in the customer saying no so given the situation I'd drop the job, not worth being resentful and hating a job over $35.  But you really need to get more pesimistic with quoting , being that far off is constantly going to hurt you.


Posted 28 May 2018 - 06:52 AM

Mattie
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How Do You Raise Your Price After A Silly Quote?
#4

All you can do is just be honest and say you need to raise your fee because you under quoted, but you really should have done this straight away not wait a year.   
 
I'd say doubling your fee will 99% result in the customer saying no so given the situation I'd drop the job, not worth being resentful and hating a job over $35.  But you really need to get more pesimistic with quoting , being that far off is constantly going to hurt you.



Yeah that’s just way too much a variation , maybe you could negotiate another 15-20$ , would that keep you doing it?afterall you have mowed it for a whole season at very much unders.
The best thing is as Plucka says be upfront with the customer , most will know that it’s too cheap and be willing to keep you but how much they are willing to pay only you have that idea.
Posted 28 May 2018 - 09:21 AM

Lucky
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How Do You Raise Your Price After A Silly Quote?
#5

I suffer from optimism - consequently I look at a $70 job and think "I can knock that over in no time" so I quote $35 and get the job. Then have to do it time and time again, resenting it every time and feeling like a fool.

But what are you supposed to say ... like, "I have been doing this job for a year for what is really a rip-off price, me being ripped off by you, so now I want to make everything fair and charge you twice as much in future?"

Ugh.

 

Some brainstorming:

 

Are you catching this job?

If you are stop and start mulching/side shooting/open flap. This will save you not only a fair amount of time but wear and tear on the body. Might make an hrs job a 45 min job. 

So now ur close to the $ a minute make. 45min for $35. You using a 21 inch mower or a 19 inch? If a 19 then get a 21inch, Theres another 5 mins saved.  So your now at 40mins for $45. $5 increase due to the cost of fuel and sundries and your at the $ a minute mark.


Posted 28 May 2018 - 11:56 AM

drewebb
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How Do You Raise Your Price After A Silly Quote?
#6

I suffer from optimism - consequently I look at a $70 job and think "I can knock that over in no time" so I quote $35 and get the job. Then have to do it time and time again, resenting it every time and feeling like a fool.

But what are you supposed to say ... like, "I have been doing this job for a year for what is really a rip-off price, me being ripped off by you, so now I want to make everything fair and charge you twice as much in future?"

Ugh.

Simple!! Say thanks for the business and move on OR hit them with a price increase and let them tell you OK or No Thanks, it,s not rocket science  :)


Posted 28 May 2018 - 02:09 PM

Road Runner
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How Do You Raise Your Price After A Silly Quote?
#7

I quoted $50 for a $70 lawn. My fault it was at the end of a long day and I didn't check that he ran his retic off a bore three days a week and must have shares in a fertilizer company. After a few mows I sat down with him and it was pretty clear he wouldn't go for a price increase and wasn't happy with mulching but we compromised on weekly mows during the growing season and he agreed to go easier on the fertilizer. Took the job down from 1hour 15minutes to 1 hour so whilst not exactly where I want to be not too far off $1 a minute. I am happy to do the job and it is a weekly reminder to be smarter with my quoting. If I wasn't happy then I would of let the client go (nicely). I have found that you can get away with small price rises but there is no chance of doubling the quoted price.


Posted 28 May 2018 - 02:27 PM

Colsy
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How Do You Raise Your Price After A Silly Quote?
#8

Dont cling on to an underpriced job like its a life and death situation. Like others said its a choice between these 3 things.

 

Raise the price

Let them go

Find a quicker way of doing the job


Posted 28 May 2018 - 07:22 PM

Macka
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How Do You Raise Your Price After A Silly Quote?
#9

dean11 if your resenting it every time you do it.  price might not be the issue.


Posted 28 May 2018 - 08:35 PM

dean11
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How Do You Raise Your Price After A Silly Quote?
#10

Thanks guys for your wisdom! All very enlightening ####ysis/advice.

 

Have always thought that running your own business has a special dignity even if the people with the jobs have all the holidays and most of the money.

 

I too try to be logical and scientific about running my show, but I do have a wicked tendency to underquote. I think I sometimes put myself in the customer's position and say what they want to hear.

 

35 -> 70 was illustrating the problem. In the particular case, it's a business customer I really want to have and keep because of other factors, one being that they are in a conspicuous position, so other work should come from working there.

 

I'm thinking I'll go for 15% increase, fingers crossed.

 

 

 

 

 


Posted 29 May 2018 - 09:09 PM

Macka
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How Do You Raise Your Price After A Silly Quote?
#11

Big Business tax is 30.0%  on profits,  So a business can claim a $35 mow as a expense and out of the bottom line its really only costing them $24.50     If that $35 was left for profit they would loose $10.50 to tax anyway.


Posted 30 May 2018 - 06:37 PM

dean11
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How Do You Raise Your Price After A Silly Quote?
#12

Macka you are right the money is nothing to them, though they don't throw it away just the same.

 

What I ended up doing was: there are three parts to the job, on different time cycles. I raised one 15%, another 25%, and one 30%  .... and they immediately replied "that's fine".


Posted 30 May 2018 - 10:19 PM

mark4879
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How Do You Raise Your Price After A Silly Quote?
#13

It can be a tricky one, I have several clients who pay the same for mowing that they paid 4-5 years ago. The only differerence between now and then is the mow became more familiar and is quicker to do. You work out a better system to whipper and mow. Also my mower has a wider cut than a few years ago.
Newer clients though over the past year have been quoted/charged out at $55 for a mow where before it was $40. That’s an increase to me of around 40%.
It’s no skin off my nose if they say it’s to expensive I just move on to the next quote. On saying that in the past 6 months I’ve gained about 8 clients, lost none and only had one refuse to pay that amount, the rest are happy paying my new rate.
Posted 01 June 2018 - 04:38 PM

dean11
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How Do You Raise Your Price After A Silly Quote?
#14

Mark4879 points to something Drewebb and others mentioned "if they say it's too expensive I just move on to the next quote".

 

By the way how do you get the Quote button to do anything useful?!

 

Yeah do a great job, charge a price to match, and if they don't happen to realize how lucky they are to have the chance to get you working for them well that's their problem. But only if you have lots of requests for quotations coming in ... so that you can afford to not get half of them.
So you have to attend to promoting your business as well as doing the work.

 

...

 

Here's another point. When you get a job and do it for years and chat with the person and they give you a bottle of wine at Christmas it can seem very friendly & perhaps it really is, as far as it goes. But then something like this happens: they sell and move into a unit, or they get a new boyfriend who moves in and he takes over the mowing ... and it's over and you never hear from them again. It's a business relationship and nothing else, so you have to be business-like at all times, and that includes charging a fairly high price, not a fairytale price.


Posted 01 June 2018 - 09:52 PM

spongy buffalo
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How Do You Raise Your Price After A Silly Quote?
#15

There’s more to a good customer than the $/hour when you cut.
It’s good to have a few that are close to home and happy to have you turn up at 7am
It’s good to have people that will keep you mowing or give you something else during winter.
Some people have a great network and get you many referrals

Some disappear in April and come back 6 months later

That said if you have under quoted heavily you’re probably best getting honest after a mow or 2 and saying look I’ve misjudged this and go from there.
Posted 02 June 2018 - 05:11 PM

Craigg
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How Do You Raise Your Price After A Silly Quote?
#16

Hi 

Its good to see nearly everyone has gone through the same thing with pricing, i know i have . I dont know how many times through facebook etc you people asking for quotes and its all good until you mention the pric and dont hear back from them. With very little rain here in Sydney area its making it harder as nothing is growing which Im sure is happening elsewhere.

I have found that by sticking what i think is a fair price always helps as we need to make money not loose out on it.

im just trying to work out a figure for ride on work with a 51" zero turn and slasher. I hear the prices range from $40 - $120/hr .

the joys of the job we like doing..


Posted 04 June 2018 - 04:12 PM

dean11
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How Do You Raise Your Price After A Silly Quote?
#17

Hi

Craigg if you average the cost of buying maintaining and running a medium sized zero turn, it turns out to be about $20 per hour. So if you were to regard yourself as just a worker, worth about $25 per hour, then that would be $45 per hour total. But if you want to be paid for all the unpaid work you do as a boss, you'd need to load 25% onto that, and get to $56. If you want to have luxuries such as annual holidays, sick days and retirement, you'll want to charge more again. So I would say anything much less than $60 per hour for ride on work would not be a professional price, in the sense that it isn't professional to go out of business after about six months or a year.


Posted 04 June 2018 - 04:27 PM

Lucky
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How Do You Raise Your Price After A Silly Quote?
#18

At only $60 an hr for ride on work ill stick to SP mowing thank you.


Posted 04 June 2018 - 04:35 PM

spongy buffalo
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How Do You Raise Your Price After A Silly Quote?
#19

There’s always someone going broke mowing, don’t try and compete with them
Posted 04 June 2018 - 04:47 PM

drewebb
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How Do You Raise Your Price After A Silly Quote?
#20

''The compe####or to be feared is one who never bothers about you at all, but goes on making his own business better all the time.”

 

– Henry Ford


Posted 04 June 2018 - 04:54 PM




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