Negotiate Price in a Pinch?

skmcleod

New Member
Hi all,
Wanted to share with you an estimate I did on Saturday to see how far off I am. Keep in mind, I'm a newby who doesn't want to "underprice" the market. Keeping some price stability (heck inflation) in our industry makes since. That being said...

Deck flatwork (3 areas), 4 layers of old paint/stain, wants it taken down to wood to restain, 392 sq ft total, $400K home, retired professionals, $529.87 ($1.35/sq ft). Although he said he plans to re-stain himself, he accepted an estimate for staining. My estimate for staining was $1088.13 minus a $100 credit towards the stain he wishes to use (I earn $988.13).

He just left a message declining all my work. Said he's going to "attempt" to do this himself.

I know I will never get all the jobs. In fact, probably about 20% of whatever I estimate would be pretty good. However, I've been out of work for a while and could really use the money and wish to work in this little community for a long time, starting now.

A couple questions:
1) Should I call to negotiate price (keep in mind, I am nearly freakin' broke). How can I do this without compromising my integrity?
2) Or should I hold to my guns?
3) If I hold out, should I call to acknowledge his phone call (keep in mind this is a small, gossipy community, soon enough, I will earn a reputation one way or another. My goal is to earn a rep as one who charges a fair price for high quality work (like most of you).

Please advise.

Thanks again for your guidance,
Scott
 
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WeatherMan

New Member
Wait it out.

I'm new to this but I would wait it out. If he has 4 layers of paint and stain he probably won't do a good job and will call you back.
 

oneness

New Member
skmcleod said:
I know I will never get all the jobs. In fact, probably about 20% of whatever I estimate would be pretty good. However, I've been out of work for a while and could really use the money and wish to work in this little community for a long time, starting now.

(keep in mind this is a small, gossipy community, soon enough, I will earn a reputation one way or another. My goal is to earn a rep as one who charges a fair price for high quality work (like most of you).


The LAST thing you need, especially just starting out, is to get a reputation as one who can be easily talked down in price.

If your area is like mine, you'll find that many people want prices for deck work, but when they see what it costs, they decide they'll do it themselves.

It IS a tough call, in that you need the work. What you COULD do is call the guy back and ask him why he is choosing to do it himself. You could explain how difficult it is going to be to get all that stuff off the deck, and that without the proper chemicals and equipment, it will be near impossible to get it right. Rather than trying to lower your prices, try to make him see why the price is worth it.
 

onecallpowerw

New Member
Way over priced.....

From what I have read... you have quoted him a price of $1618.00 for total deck restoration. If this is correct and you are talking 392 sq ft...no wonder he turned you down. You are way way over priced. Correct me if I am wrong but I get $4.13 per sq ft from your calculations.

This is why you lost the bid.
 
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Henry Bockman

New Member
Being new to this kinda work I wouldn't touch that job. As a matter of fact with all the layers, paint ect I probably would have charged more than he priced it at. I hate jobs like that, there are just too many other easier jobs out there to do instead of killing yourself on something that tough.

Just my opinion of course.

Why don't you find some nice vinyl siding to clean or some decks with clear or no sealer on them to practice on first?
 

PressureForce

New Member
This guy is gonna turn you down most likely for one of two reasons...

1. He just cannot afford or justify the work in which case sticking to your guns is somewhat a moot point.

2. He thinks he can get the same services from someone else cheaper.

There's no shame in asking your guy which of these is his motive.

If it's option 1 and the guy is retired, consider 2 things... 1. cutting back on the scope of the job. You come in and clean everything giving him a nice surface with which to work. He saves money - does some himself (the hard part) and you get some work too. See if the guy can turn you onto some of his neighbors, and if so offer a discount.

If it's option 2 then you are probably going to have to lose the customer if a cheaper bid comes along. Unless your equipment is just kick-ass, experience is really your only other reason for being more expensive. If possible, try to find out what he got the work done for just for the learning experience.

Man - I see it over and over and over again - don't be cheap - stick to your rates - yada yada yada... While there is validity there man - you can't just nail some rates then refuse to lift a finger until the phone rings.

My first job EVER in pressure washing was my own house and drive. Revenue $0. My second job was my neighbors - $0 revenue. 3rd job - neighbor on the other side. $0! We've done dozens of free realtor listings just to get some exposure and hell yes we have cut LOTS of deals.

In a matter of months we were running 2 rigs pretty much full time. Everyone has their opinions, but I have very little patience for folks that just sit until someone's willing to give them a chance... at full rate. That's like going to hollywood and refusing to take a part until it commands the same salary the other stars are making.

You cannot begin to have profits until you have cash flow.

As always - sorry for my bad spellering. :)
 

Kevin14606

New Member
Nice job!

PressureForce - Great advice! All my first jobs were free (well most were going to be, but then some insisted on paying afterward).

Offering to do some free jobs at first is a great move. You get experience, start your word-of-mouth advertising, and gain confidence. I agree with targeting some easier, less intense jobs to start out. As it is now, I'm still very new to this, and try to stick solely to residential jobs, i.e. siding cleaning, basic deck work, concrete patios and driveways. Another good thing to try is to offer low-cost car washes while you're already at a job. Try "Hey while I'm here, if you want me to give your cars a once-over, I'll just charge you 15 bucks for both." What the hell.. you're already there and it only takes a few minutes!! There are so many ways to upsell once you're on a job. And if it's a real big job (revenue big) then do a car for free.. It goes a long way with customer service, reputation, and word-of-mouth advertising.

Scott- I got your message, didn't mean to ignore you.. Just haven't had a chance to sit down and call you back.. I'm at my full time job during the day and have been extremely busy at night.. Tough to call from work, but I can email easily.. Drop me an email if you want and I can probably get back to you sooner than on the phone.
 

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