I know the office manager of a local law firm. She asked me to bid on in/out of the firm (located in an old house). I bid the work at $260. Another reputable company in town bid it at $248. I said no problem, I’ll match it. I was happy that I bid it that closely to them.
She got one more bid from a local for $150. I simply said, “You get what you pay for, be careful. I’ll give you another $20 off my price since you thought of me, but that’s it.”
Granted, the office manager is a friend, but she’s NOT the one writing the check or making the decision. The low ball got thrown out and I got the job.
In this case, the fact that a “low-baller” bid was of no consequence:
The office manager is your friend. This is key.
You reduce your price if a “reputable” company bids lower. (Perhaps the $150 bid was from a reputable company – a low price does not necessarily define a low-baller.)
If the office manager is not your friend (other circumstances), wouldn’t a decision-maker wonder why you didn’t forward your “best” price from the get-go?
THis is why I never lower my prices. Never. If they don’t want to pay what I ask for, then sorry I walk. If they still want me, I will decrease the amount of service, but not the pay. I mean like tell them I won’t clean the screens or tracks or something like that. You know, oneof those time killers that makes you jobs take just a little longer. But, never, I mean NEVER, lower the price.
Does being lower in price make the other company less reputable? Since you felt the urge to lower your prices twice to win the job could the other company (the company that came in at $248) call you a low baller?
You were at $260 then whittled it down to $228. Were you overpriced to begin with or desperate for the work? I ask this because there is a fine line between what you did and the “low baller”. He might have been in a situation where he needed the work and priced to sell.
Why were you in a battle with this perceived low baller when you had an “in” in the first place? Were they considering taking the $150 until you scratched another $20?
It is all about perceptions. I perceive what you did to be unethical, not the “low baller”.
Lately we have been getting a little less tolerant on the forum as to labeling companies as “low ballers”.
I see absolutely nothing wrong with the guy who bid $150. I go against that all the time. Sometimes I win and sometimes I lose.
I am not sure why you are thanking “squeegee bob” for you running down your price…
I deal with guys running lower prices than me too, that’s fine if they can do the job at that low price fine. I know i wont be seeing them in the long run. but if a company lowers their price to below mine to get the job, that is where i get a tad bit ****y.
Website coupon or a schedule maintenance contract discount is all I budge. There is something to say for those getting into a bidding war. Why not give them the best price up front? Is this considered lying to a potential customer? Gouging? Dishonesty? If you have the credibility and the image, Why not stick to the original price? If someone came to give me a painting quote on my house and I got them to knock off a few hundred bucks, would I think that they would do the job quickly and not as quality driven as the first bid? I would say yes (JMHO). I have a set price for all work that we do. I never budge to do it at a lower rate.
BJ,
Wow. I wasnt going to post a reply to this because I got my head chewed off ver there on the NWCD for posting basically the same post. It really boils down to putting a final price out there this first time out. Sure I have had price shoppers say that so and so used to do it for $$ less. I just try to sell them on the benefits of using us then. If they want to still lower the quote price, I will tell them that I can minus the basements or the garage to save them X amount off the price (hate garage and basement glass to begin with)!
Its just a hang up with me on price. I hate to compare myself with the local competition. Most of what i have seen and heard leads me to believe that we are the best service out there in our area.
I appreciate your understanding on this one as well.
Keep up the good work.
