Quoting a job?

[EddieWalker]

It always amazes me to have someone ask you to do for free what you do for your work every day. Do you work for free at your job???

I was a little slow at learning this. It hit me when I realized that instead of me making money for my time and effort, they where the ones making money off of my time by not having to pay me for what I would charge anybody else for. At first, I made up excuses of why I didn't have time to "help" them out, but eventually I just told them that if I'm going to be working for them, then this is what it will cost you. Funny how not one single person that I "helped" ever hired me. In hind site, I realized that they never "helped" me with anything either.

Now the only people that I do stuff for free is my parents.

I do not give discounts to friends, family or churches. You pay what any of my other clients pay. Why go do a job for less, when somebody else is willing to pay my normal rate? I have bills to pay, invested tens of thousands of dollars in tools, and I now look at it as an insult to expect to pay me less so they can keep more money in their pockets.

Having said all that, I will do small "favors" for clients if they need something done, and it turns out to be a super quick and easy fix, by not charging them anything, with the knowledge that they will remember that, and call me again when they need something else done. This has worked out so well that they tell their friends about me and hire me for a project. I consider this marketing, and part of what it costs to get new clients, and keep existing ones happy.

 

[Ritothebull]

I won't quote work for friends unless they have owned a business or have worked in a position where they know what it cost to run a business.
I know some folks that were recently bitching about a guy wanting $75 bucks an hour to bring his tractor out to spread a few loads of gravel on their driveway. I told them to go price a new tractor, then add the implements you need and a truck and trailer to pull it and insurance for all that and then tell me how much you would charge, I think they got the picture.

 

[City Farmer]

Thanks again for all the great replies. These RVs are huge, 2017 5th wheel, 40 something ft. with 4 slide outs.

I am done dealing with these guys. I know my prices are cheap and theres no way I am coming down a penny. My new, soon to be neighbors stopped by yesterday to introduce themselves.

They are paying $8000 for a construction driveway. 12ft. wide x 300ft long, scrape off 4 inches of topsoil, add some crusher run, road matting and a 30ft. culvert. I could save them a lot of money but they want it done this week. There is no way I can swing that with the day job and the holiday this weekend.

 

[Barnbuilder]

What holiday?

 

[City Farmer]

What holiday?

Fathers Day.

 

[Industrial Toys]

On the other hand. There was a sandblaster I used every year for years. But he never, ever gave me a break for price. Never rounded down to give me a deal. I have used another guy for the last few years, who is actually too cheap and always pay him more than he asks. You have to treat different people differently.

I do the odd free service call and give away free back up batteries to show my appreciation for my customers long term business.

 

[Gary Fowler]

If they came back to me asking me to do the same jobs, I'd tell them: "No, the price of fuel has gone up and after you felt my price was too high I got to checking, and I'm actually low for the equipment cost. I'll pass. Thanks though."'

X2 on this. NO way would I accept the job after they bad mouthed me on the high cost. I would do like D2Cat says and explain that I made a mistake on the original estimate and no longer wish to even bid on the work.

 

[Ritothebull]

One thing that I've gotten into a habit of doing, and especially on jobs that I don't really want to get involved in is asking people what's their budget for the job. Everyone has an idea what they want to spend on a project and many folks will give you an honest idea, but the ones that won't usually aren't really serious or just too cheap and are hoping your a dummy.

 

[Big Barn]

X2 on this. NO way would I accept the job after they bad mouthed me on the high cost. I would do like D2Cat says and explain that I made a mistake on the original estimate and no longer wish to even bid on the work.

This advise gets a third vote from me. I don't miss the days where people expected me to "work for free". The customer's response to your quote is a good indication to how the job would progress. Life's too short. Move on.

 

[bdog]

I have a brother in law like that, he used to embarrass me with wanting something for less every time he bought something (that is until I quit going out with him). No matter the price, he wanted a discount and it wasn't because he lacked funds, he has way more money than he will ever spend, but he seriously wants everything for nothing.

Maybe that is why he has so much money? I have no problems paying for what something is worth but I always try to get a deal. I don稚 think I am rude or tacky about it but I always ask. I never get mad or say that is too much I usually just ask 妬s that your best price or could you do any better if I paid in cash the second you were done? Or if buying a product and they quote a price I will ask something like 田ould you do any better if I said yes and bought it right now? You would be surprised how many people will drop the price. I think a lot of people figure they are going to get haggled on price and start out high to begin with so they have some wiggle room. I have literally saved tens if not hundreds of thousands doing this. I bought some equipment for my business last week and got 20k knocked off the price by asking.

When it comes to individuals doing work on a hourly basis I usually don稚 haggle them on their hourly rate I either think it is fair and say yes or say no thanks. When things are quoted I always ask. If they say nope that is the best I can do then I usually say fair enough let痴 do it assuming the price is reasonable.


To the OP your rates were more than fair and probably on the low side. Dealing with individuals is tough as most have no concept of what things cost. I have lots of equipment but do very little for individuals for that reason. You would be surprised how many people honestly think you can do a job for them for not much more than it costs you to do. They have no idea how much machinery costs and what it costs to maintain. Again I don稚 mind if my customers ask me if that is my best price or if I can do it for any less but usually it is crazy people with a job that should cost 10k thinking you should do it for 1k.

 

[D2Cat]

I agree with bdog when it comes to setting on a price.

I lived 5 years in the Far East as a teenager. Getting a job was not available unless it was provided by one of the military bases, and even then it was "invented" for the youth. There were plenty of "workers" available!!

There were pawn shops everywhere, many times several next to each other. Soldiers would pawn just about anything from their guitar to their combat boots. I would focus on transistor radios. This was about 1966 and they were just becoming something everyone had to have. When the store owner would take an item in they were checked out and in excellent condition or they wouldn't accept them. With transistor radios the pawn brokers would leave the batteries in the radio while in storage. If the radio was not redeemed within about 3 months often times corrosion would begin and the radios would eventually not operate very well.

I would go into each shop and see what they had for sale, then ask if they had any radios that weren't working. They always had at least one! I learned at 15-16 years old you negotiated on price. Those guys expected it and enjoyed it. Many times I'd haggle and not come to an agreement, then turn and walk to the front door. By the time my hands were touching the door they come back with a better offer. I'd come back towards the counter and "go again". Almost always ending up buying the radio.

I would then clean the contacts, put in new batteries and sell them (sometimes back to soldiers).

Now days, I find out all I can about an item through pictures, phone calls, etc. Sometimes it's not clear exactly the condition, but I say something like: "I'm coming from xxxxx (to show I'm ready to go to their location, and they can see the distance involved), what would be your best price?" Very, very, very seldom is there not a reduction the the original price.

It's just something I do, and I offend no one that I'm aware of. (And if they're offended, they can sell to someone else by saying "No")

 

[Silvic]

Agree with the others; your quote is on the low side of what one would expect.
Every area is priced differently and most/many areas that would have been a steal of a deal.
I would have jumped on that price if I was those folks.
DO NOT DEAL with them again. You will regret it if you do.

 

[crashz]

Even though it would be ridiculous to expect customers to know, they really have no idea what the cost of maintenance is on these machines. A bottom end for your dozer is going to be $6-8K in parts alone! Never mind daily costs to move, operate and insure these beasts!

We did a job last year for an old school buddy. He asked me to come by and look at a couple of stumps to remove with my Bobcat. It was actually about 30 stumps, mostly large, and grading (with topsoil) an acre of lawn. And a drainage swale. I told him it was beyond a Bobcat and i could do it if we brought in my father and his excavator and dozer. We agreed on a price, got it done, and got paid without any haggling. I spent some time really looking at our costs on that job and was surprised at how high the price was to make even a mild profit.

That being said, I've been aggressive with my tractor business this year and have been pleasantly surprised by my customers on CL. I have been paid upfront with no hassle or haggle. But I have set things straight up front, and have had some people looking for more than what I can do for much less money. Those folk get a polite email saying thank you for contacting me and here is my rate. If they want me, they respond. If not, no hassle. Truthfully I've been busier than I expected and right at the sweet spot on what I can accomplish without straining my equipment and myself. As a side benefit, I've met some really cool people.

 

[TomIre]

What sort of insurance do you have on your equipment? My homeowners only covers of I'm on my property.

 

[bdog]

I have an inland marine policy which covers my equipment and then I have a commercial General liability, workers comp, and a commercial auto policy. All together the Insurance is around 20k a year. Sucks but is the only way to be adequately covered for what I do.

You will find your normal personal policies don稚 cover anything if for hire. This includes if you get in a crash hauling your equipment to a job. People who do side jobs with their equipment without proper insurance are mighty brave or ignorant. The odds of something bad happening when working for others is orders of magnitude higher than when just doing work on your own property.