Dealing with customer question.

[Eric]

I had a customer respond to my quote with these 3 questions.

1) what makes you the better choice over competitors?

2) Are you able to give a 10% discount for a winter project?

3) Are there other payment options from what is stated at the bottom of the contract/quote that we both can live with?
Thoughts on how some of you would respond. I do usally give discounts for winter, although lately I just price everything cheaper.
As to #3 I usually get 1/2 down up front to cover material costs.
Thanks Eric

[byhammerandhand]

I'm surprised he didn't add, "If you give me a deal on this, I can send a lot of business your way."

How about countering with:
"Where do you work?"

"What makes you better than your co-workers or competition?"

"Would you take a pay cut when company business is slow?"

"What other wage arrangements could we make other than a paycheck every two weeks?"




Personally, I'd thank them and move on.   They're likely to be a pain through the whole process.   I went to a class a number of years ago.   The instructor ran his own business and his motto that he repeated throughout the day was "That's the price.  Yes? No? Next?"

A couple of weeks ago, I went to look at a job and gave the lady my normal price.   She offered something less.   It was late in the day, close to home and I had nothing else to do, so I did it, but regretted it later.   She had a new house worth about 4 times what mine is, then she said she spends the summer at her summer home on Lake Erie.   "It's not a big house like this, just a 4 bedroom ranch on the shore."

[sofadoc]

My answer to question #1 is always "Other shops come and go so quickly around here, so I really don't know too much about any of them".

My business isn't seasonal. It's very consistent year 'round. If I did offer a winter-time discount, I wouldn't tell them about it. I'd just quote a lower price in the winter.

I have a few people who will ask me if I give a discount for cash. I play dumb, and tell them that my credit card merchant fee is very low, so the discount wouldn't be very much.

What they're REALLY implying (with a "wink-wink") is "Can we leave off the sales tax?" OR they think that I can just stick the money in my pocket, and not report it as income. Or perhaps I have an owner/partner that I can screw them out of their portion if we just do an "under the table" cash deal.

I'm surprised he didn't add, "If you give me a deal on this, I can send a lot of business your way."

That is one of my two most hated lines. The other being "I can buy a new one cheaper".

What gives people the arrogance to think that they have the clout to "make or break" your career?

[kodydog]

I have a few people who will ask me if I give a discount for cash. I play dumb, and tell them that my credit card merchant fee is very low, so the discount wouldn't be very much.

What gives people the arrogance to think that they have the clout to "make or break" your career?

Last week a customer called and asked what the final bill on 6 dining chairs was. My wife told her X amount of dollars plus tax. The lady flipped. She said this is a cash deal and no tax needs to be added. My wife explained cash, check or credit card the law requires us to collect sales tax. My wife then explained that she she is an accountant for the Florida Department Of Revenue and took an oath to always pay and collect her legal obligation of taxes. The lady quietly agreed.

A fellow opened a lawn and garden equipment store next to where I work. He was all PO'd at John Deere and his business plan was to put the store down the street out of business. 2 years later he is gone.
A fellow who used to work with me told me, some day I'll open my own business and put this place out of business. It never happened.
My philosophy has always been if I'm doing good and the shop down the road is doing good, then the economy will keep chugging along. We should all help each other out rather than cutting each others throats. Then we can all charge a little more and I'll get the customers who like the way I do business and they will get the ones who like the way they do business.

[Grebo]

I had a customer respond to my quote with these 3 questions.

1) what makes you the better choice over competitors?

2) Are you able to give a 10% discount for a winter project?

3) Are there other payment options from what is stated at the bottom of the contract/quote that we both can live with?
Thoughts on how some of you would respond. I do usally give discounts for winter, although lately I just price everything cheaper.
As to #3 I usually get 1/2 down up front to cover material costs.
Thanks Eric

1) You asked me for a quote.
2) No
3) No.

Suzi

[SteveA]

"Then we can all charge a little more and I'll get the customers who like the way I do business and they will get the ones who like the way they do business " Author = Kodydog

Still trying to figure out how to insert a quote ? 

Anyway - it's better to just ignore stupid comments.  Folks are watching pawn stars and think all trades + goods are negotiable because they saw it on TV.  Give them something to feel like they are getting a bargain - extra foam, polishing, free delivery - those things don't hurt the bottom line. 

Try to get an air line flight cheaper around the Holidays - they all know when to hold their prices.

How many times has an account called and said - I can authorize up to $ 1000.00 and you're thinking to yourself " I can do this for $ 300.00. Take the good with the bad !   Anyway - I say - go along with the clients and don't loose the job. 

I actually give better prices to nice folks who don't ask for discounts up front.
SA

[Mike]

With a few poeple i tell them if they dont hav te money if they call me in sept. i can give them a little break.  Sept is like the dead of winter for me though not as dead.

I had a customer last week askme for references. Ok i did and after 3 cLls he called me back. To go ahead.   Then yesterday u got a call a guy wanted a cockpit cover fit at the top of the glass. On a 28 larson cabrio. I  was $800 he said sounds good larson gave him a price of $1000 over the glass. And i was thinking good thing i was 8.  Then he said he had another quote commin tuesday.
:(. Im thinking ill need references also from them before i come out on the quote. After all i told bim ballpark 8 on the phone.

[bobbin]

I'll negotiate a little on labor IF I'm providing the fabric and materials (and it's my "slack season").  If not, well... the price is the price, my friend!  Taxes? non-negotiable, I'm afraid.  I have to pay 'em and that means you're going to, too. 

I let a job "go" in July when the client tried to "talk me down" by requiring that I shop for the fabric.  NO WAY, Jose!  She called at 8 AM sharp to tell me she'd found someone who could do the job for less... .  I congratulated her on her good fortune.  And mowed my lawn, weeded my gardens, and painted some things that needed it, instead.  It was REALLY hard to, "just say NO".  But I'm glad I did!

[byhammerandhand]

"So you want me to lie and cheat the government (where there are significant penalties) or business partner, but then trust me not to do the same to you?"

What they're REALLY implying (with a "wink-wink") is "Can we leave off the sales tax?" OR they think that I can just stick the money in my pocket, and not report it as income. Or perhaps I have an owner/partner that I can screw them out of their portion if we just do an "under the table" cash deal.

[Mojo]

Out of all the orders I have done I have only had one guy ever try and talk me down. I didn't bite and told him no.

My rates are not up for negotiation. Period. They are what they are. Pay them or go see my competitor. Think they are high, call the big corporations who set the prices on these products and complain to them.

I have cut my prices before to people in certain coach owners associations simply because they helped me make inroads into their organizations. I did a job for a customer for free recently but he brought me thousands in business this year through his constant " advertising " posts he made on major RV forums. :)

I will not offer specials or cut prices and the reason being is that my products are all standard and many of my customers attend rallys and events together. The last thing I need is for one I have given a big discount to, to start blabbing about what he paid and piss off 3 other customers who are sitting there listening that I charged full rates to.

Once you start giving discounts and the word gets out it wont be long before you will be stuck giving those discounts to everyone or go out of business. Ask Little Ceasers how their catchy little phrase Hot N Now for $ 5 pizza thing is going. They are having a helluva time raising their prices now without backlash.

Chris

[Mike]

Bovbin on com. I had a email inquirey a couplemweeks ago. To recover 8 seat cushions for a sedoo jetboat. The toy type. I figured 5 yards. And gave her my price. I did t hear back  
Than last week she called can i do it still oh and she had a lady who was going to do it. And she got sick or somthing she says and had the vinyl. I think it was harder then she thought. Had  started to mark the patterns.   So how much for the labor. I said ok at $75 less then my original price.
I got them done in about 8 hours. They a little harder. Then i estimated.
Oh and the other lady realy shorted me about 1/2 yard more i had to add some seams to swueeze it all out.   But she got them today and im richer.

[gene]

1) what makes you the better choice over competitors?

2) Are you able to give a 10% discount for a winter project?

3) Are there other payment options from what is stated at the bottom of the contract/quote that we both can live with?

For me, all 3 of these questions are about price. Price only. If someone is looking at my work as a commodity, I have no interest in spending any time with them.

I would respond with a respectful:

1. I provide a level of service and quality that is second to no one, at competitive prices.
2. I do not discount my service and quality, nor do I discount my prices. I understand that not everyone wants the level of service and quality that I provide.
3. My payment options are the way they are because I want to keep them as simple as I can for both me and my customers.

Many of us are in different situations. I think what's important is to tailor your response to your situation. At least that's what I try to do.

Thank you,

Gene

[ragtacker]

I (very nicely, with a sweet smile) suggest that they get additional quotes.  I do not give discounts, and it's cash or check upon delivery, no exceptions.  Unfortunately, I have gotten very good at the smile sweetly routine! ::)

[Eric]

Thanks everyone for the responses. I will also have to tell him, he's responsble for the charge the boat storage facilities rape me on, for working there.
Eric

[Mike]

oh eric if its at a facility that want there cut the charge I s reflected in mine ill ask them it it can be done elsewhere