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Clients are experts8/17
Is it me or am I one of the lucky ones that have clients that are experts on pricing cabinetry. When I price a job they come back with " Oh that's to high ,can't you do any better?" So I use to take as omg I'm way to high I'm gonna lose the job. So now i enrolled in their school and have learn all they want is to know they got a deal . So raise the price a little then if they use their line I drop it little by little until they bite. Then their happy an most of the time I end up with a little extra so I'm happy. Now noted I don't go crazy on inflating the price so I lose it but just enough. Do you guys have these experts also?
Yes I have price experts too. Although I have always thought it's a dangerous game pumping up the price and dropping it so the client thinks they have one. Even thought you are coming out of it with a win there may be flow on effects that you aren't realising.
When you get your referalls from that person, they are most likely telling the friend the way you did the deal. So you have locked yourself into that cycle as the next person is going to do the same thing.
It may also reflect on your perceived transparency with the referrals.
When dealing with privates I try and relate to them. They are dropping a lot of money on a kitchen and want to know they are getting a fair deal for the product they have asked for....fair enough, I do too when I purchase! If they expect and more than that, they can find another cabinet maker.
For the builders, It's more about getting the job done right, on time and going above and beyond if there is a problem. Sometimes they need to be reminded that a high level of service costs money to offer and although it's not a VISIBLE cost they can see the value in immediately, they end up being more profitable with reliable trades behind them.
Don't get wrong. I'm not a martyr. I read a customer, work out what type of spender they are and price as high as I think I can get, I think that is part of being a good businessman. If the price is above the clients budget, there must be a compromise made to reduce the price, change a material, reduce volume.
We inevitably lose out on jobs, often from factors out of our control. So when the sun is shining we must make hay.
Wait till a couple of your customers compare prices. The one that paid what you estimated, and the one that paid what you played around with. Good way to ruin a reputation. I only lower the bid if they start removing accessories, or reducing the number of cabinets.
Over the years I heard wow that's high,
When I get "can't you do any better" I often say "yes, I can make it higher"
QUOTE: 'When I get "can't you do any better" I often say "yes, I can make it higher".
That sounds like a Will Sampson joke. :-)
FYI: Will Sampson: Editor, FDMC magazine/Woodworking Network
It comes down to what the customer is willing to spend and perceived value. I bid everything through cabinet vision, materials, labor, overhead and profit. It took time to do set up and work through the process. I don't know your market niche but when I do a bid the numbers don't lie and our based on my fixed cost.
All the best.
Rich C if you see I noted that we do not raise the price that much . We do pure custom work so the prices would rarely be same but it would be with in that amount that we raised it. We know our customers talk price to each other but they are looking for a company that will do job right and if something needs to be done such as a bad drawer slide, etc. will come back and back thier work.
Jim, we are starting to do that with some of our work that we can use the program I have. I would like to look into a new program that would allow me to use it for more custom work and this way we know what are number s have to be . I will have to do my home work on what would work for us.
My first boss had this line for the impatient or cost conscious client.
There are 3 variables you can have 2 out of the 3.
If you want a low cost, high quality product we will do it on our schedule. Essentially when we have a lull.
If you want a high quality product tomorrow. It will be expensive. It screws up our schedule and we have to work overtime.
If you want a low quality product go somewhere else. You can't pay us enough to do poor work.
You have to do whatever you feel works for your market but I am kind of with the others that say I never chop my price. If we need to get the number lower we need to eliminate elements of the project.
I think its a dangerous precedent to set with customers to give them the power to get you to drop your number even if its a false "hoo-doo" that was setup ahead of time. This business is no different than any retail outlet. Its not a car dealership.
Its sad the large retail outlets and online retailers have given the retail consumer so much power. With 30 day price match guarantees, zero question return policies, and so on it, in my opinion, has made for a very difficult environment for anyone operating in the low-mid-range market and even up into the higher end.
I normally have a retail price and the current offer with the total below.
My other one is "what were you expecting?" and they always seem to be about 20% below what I quoted them. I then tell them, "just about everybody is off by about 20%, so your guess was just about right.