The joys of bidding work

LoneCowboy · Jun 3, 2007

So, We're out today bushhogging. it's a long way away, I probably barely break even on the mowing, but I"ll make out ok when seeding, etc in the fall and spring. (everybody mows, you can't charge more than everyone else).

so, finishing up and loading the big mower (little mower is already loaded) and the guy next door comes over. Hey, want to take a look at mine. I look around, he shows me stuff, I say "Today, right now, no stuff price is $450".

Well, what about $400

I already discounted. It's sunday, I don't like to work on Sunday, I'm tired, this isn't an easy place to do, it's all on a hill and it has ditches everywhere, I think $450 is an excellent price.

Well, I'll have my wife write it for $400

I said, ok, but the instant I load that tractor it goes to $500, your choice, here's my card, you decide.

He quibbled over $50 and he lost, I left. I doubt he'll call and he'll have to get someone else in.

Now, before you think i'm a whiner for $50, you have to understand this, it's a new custom site development up in the hills west of Denver, I bet the LOTS go for at least $250,000, probably more like $500,000 (10 acres), he backs to open space, it's an incredible view, he has one fo the best lots and
HE'S BUILDING A $5,000,000 HOUSE!!!!!! (at least, maybe more, HUGE, pretensious, you know the drill) and driving a Lincoln Navigator.

You know, I'm just not willing to deal with people like that. I should have started at $700 and come down to $650.

DaryleD · Jun 3, 2007

I haven't worked a whole lot for other people, but know several who do. They tell me that it's almost always the people with plenty of money who either are extremely cheap, or don't pay at all. I think that you did the right thing. The price has got to be worth your labor, equipment upkeep etc. I think that folks sometimes forget that you need to eat as well. I feel just as strongly about quality AND timely service without overcharging someone as well.
Daryle.

Farmwithjunk · Jun 3, 2007

LoneCowboy said:
So, We're out today bushhogging. it's a long way away, I probably barely break even on the mowing, but I"ll make out ok when seeding, etc in the fall and spring. (everybody mows, you can't charge more than everyone else).

so, finishing up and loading the big mower (little mower is already loaded) and the guy next door comes over. Hey, want to take a look at mine. I look around, he shows me stuff, I say "Today, right now, no stuff price is $450".

Well, what about $400

I already discounted. It's sunday, I don't like to work on Sunday, I'm tired, this isn't an easy place to do, it's all on a hill and it has ditches everywhere, I think $450 is an excellent price.

Well, I'll have my wife write it for $400

I said, ok, but the instant I load that tractor it goes to $500, your choice, here's my card, you decide.

He quibbled over $50 and he lost, I left. I doubt he'll call and he'll have to get someone else in.

Now, before you think i'm a whiner for $50, you have to understand this, it's a new custom site development up in the hills west of Denver, I bet the LOTS go for at least $250,000, probably more like $500,000 (10 acres), he backs to open space, it's an incredible view, he has one fo the best lots and
HE'S BUILDING A $5,000,000 HOUSE!!!!!! (at least, maybe more, HUGE, pretensious, you know the drill) and driving a Lincoln Navigator.

You know, I'm just not willing to deal with people like that. I should have started at $700 and come down to $650.

I tell customers I'm a contractor, not an auctioneer. The price is non-negotiable.

sandman2234 · Jun 3, 2007

When he said $400 you should have upped your original price by the same amount he dropped yours...$500 and then said how about we meet in the middle, at $450 and we will both be getting a good deal. Apparently he doesn't wear the pants in the family, otherwise he would have taken you at the discounted price instead of having to check with the boss.
David from jax

john_bud · Jun 3, 2007

Maybe he was a member of that "win-win" school of negotiations. You know, "I Win - you don't Win".

jb

hosejockey2002 · Jun 3, 2007

I have never negotiated a price in my business, and that has served me well. You don't go to the store and negotiate a price on the milk you buy, yet people expect to talk you down when it comes to providing a service. I suppose we can thank the auto sales business for customers having that expectation. Another thing that hurts is in the landscaping/construction/maintenance business are the guys who will "meet or beat anyone's bid." All they are doing is reducing the value of the services they provide. There's an old saying that serves us in business well- "It's better to go home broke than go home tired and broke".

Kendall69 · Jun 3, 2007

I should have started at $700 and come down to $650.

You already know the answer to this one. People ALWAYS want a bargain ( how do you think he was able to afford the 550k for the land etc.) - it's human nature. The $750, discounted to $650.00 is brilliant, I use that all the time.

You ALWAYS have to deal, and make it up in the long run.

I think it was a case of two guys not wanting to budge on the $50.00 and both guys are a little worse off because of pride. ( not insulting anyone here, as I'm the biggest abuser of pride when it comes to deals to negotiating).

I often have to catch myself and slam home the concept of any sale is better than no sale ( obviously unless it's costing you money). in your case you were already there so it would be like picking $400.00 up off the ground. Secondly you would spend more than $50.00 to find a new customer, and when he walks up to you ....well.

Over the long run cutting his place so many times a month for the season adds up to a nice piece of change, especially when he was next to your other customer, then the both jobs combined become profitable rather than the one job costing you money.

You might want to go back next time you cut and just cave in and say you've reconsidered and yes you will do it for the $400.00 - or not.

Years ago when i was 17 years old I had a very successful snow plowing business by taking all the bad customers at dirt cheap prices that no one else wanted. One can mine some gold in cheap customers.

Bob_Young · Jun 4, 2007

$500K lot + $5,000,000 new house + Navigator + wife's in charge = the guy's probably in hock to his eyeballs and lying awake nights trying to figure out how he's going to keep it all going. Now he figures it's time to "put an end to the insane spending" and haggle the bush hog guy down $50.

Welcome to the world of the impoverished rich. I'd rather live free & clear in a dump.
Bob

MtnViewRanch · Jun 4, 2007

I hate dealing with people that think that they have money. But as Bob says, "he's probably in hawk up to his eyeballs". These guys would loose everything if they lost their VP or Executive VP job.

After 32 years in business, I've found that it is best to work for a regular Joe that appreciates the job or better yet to work for people that have real money and the economy doesn't affect their day to day life and spending habits.

EddieWalker · Jun 4, 2007

My ex wife was title officer and dealt with allot of high end, expensive home owners. From what she told me, allot of them were in debt up to there eyes and refinanceing just so they could skip a month or two of payments. There paychecks were huge, but thier dept was even greater!!!!

I personally don't try to get any business from the country club set as I find them to be just a little annoying for my taste. My best clients are the blacks and Mexicans. They pay cash and really seem to appreciate what I've done for them. Next is the older people. They make me sad, but for whatever reason, we all get allong really well.

If I can do a job and make a decent amount for it, I take it. I charge the same for my time regardless of what the client makes, or what I think they make. If they are rude or have an attitude, I walk away. I can always make a buck and would rather be poor and happy then have some extra cash and be miserable.

I also don't like negotiating on price. It's a bad sign that once they do it once, they will continue to do it. If you had agreed to the $400, he would want to lower it in time, or try to get you to do something extra for the same money. Some people just never stop pushing it, and I'd rather not deal with them.

Eddie