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Pricing mistake


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  #1  
Old 05-14-2011, 09:09 AM
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Default Pricing mistake

Hey guys,

I recently quoted someone 35/week to cut their lawn. After cutting it twice, I realized I underpriced this job severely. I think I should've quoted 55 or 60. I have no idea what I was thinking when I went on the estimate. I must have been tired or something.

Anyway, I don't want to lose the client, so I'm thinking of just biting the bullet for the year because it's a good neighborhood to be in.

Is there any way I can approach the client about raising the price now without ticking them off? Suggestions?
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  #2  
Old 05-14-2011, 01:48 PM
Liberty Landscaping LLC Liberty Landscaping LLC is offline
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If you don't have a contract I would be upfront with them say listen when I estimated your location I made a mistake take it up 10 or so more then that and they are sure to snap. Let us know how it works out but be upfront.
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Old 05-14-2011, 08:51 PM
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Quote:
Originally Posted by element009 View Post
Hey guys,

I recently quoted someone 35/week to cut their lawn. After cutting it twice, I realized I underpriced this job severely. I think I should've quoted 55 or 60. I have no idea what I was thinking when I went on the estimate. I must have been tired or something.

Anyway, I don't want to lose the client, so I'm thinking of just biting the bullet for the year because it's a good neighborhood to be in.

Is there any way I can approach the client about raising the price now without ticking them off? Suggestions?
Quote:
Originally Posted by Liberty Landscaping LLC View Post
If you don't have a contract I would be upfront with them say listen when I estimated your location I made a mistake take it up 10 or so more then that and they are sure to snap. Let us know how it works out but be upfront.

Liberty has a point but you should look at the bigger picture. You said "so I'm thinking of just biting the bullet for the year because it's a good neighborhood to be in. so do you think you can get say maybe 5 or so jobs by being in the area? maybe taking the $5-$10 hit for this guy will pay off with more jobs. Think it over before you tick this customer off.
You know what they say " Its easier to keep a customer then it is to try and get one back".


Graham
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Old 05-14-2011, 09:31 PM
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The sooner you let them know the better. Be polite but be honest too. Decide what you want the outcome of the conversation to be before you have it. Have 2 options - 1 for if they react well & 1 for if they don't . If you get stuck doing it for the price you originally quoted, an option is to let them know that they cannot tell anyone else what you are charging. Waiting until next year and springing a big price change on them wont work - they will think that because you did it for that price for a year that they will be able to find someone else that will too.
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Old 05-14-2011, 10:49 PM
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Honestly I would tell them I made a mistake and that I was going to honor the price but I would appreciate if anyone asked them how much I charged to tell them XXXXX.

People love when the either know or think they are getting a great deal, they will eat it up.
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Old 05-14-2011, 10:50 PM
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I was in the exact situation last season. Bid a friend's yard.....she said the company mowing it now was doing it for $30. Based on the previous price and what I saw, I could very fairly do it for $25. She agreed and after the 2nd cut, she informed me that the mowing included the common area down the private drive. Based on the previous low ball price I never would have guessed it included the common area. I kept mowing for the season, picked up the yard across the drive for $60 and before this mowing season, informed her of my mistake, I had honored my quoted price but it was definitely a $40 cut with the extra mowing now. I told her I completely understood if she wanted to go back to the $30 cut of her previous company but I can't, as a business, cut this for $25. She came back and said the $40 was fine and also gave me her office building to cut. The husband and wife are both self employed, understood my business decision and luckily saw the value in the work I perform and my honesty with the situation. You can either let them know now or finish up the season and maybe pick up a near by customer but either way, just put it in the perspective of a business decision. It's not the end of the world. Best of luck.
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Old 05-15-2011, 12:24 AM
Liberty Landscaping LLC Liberty Landscaping LLC is offline
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Blame it on lack of sleep or speed reading I thought he said it was a good neighbor not neighborhood. LOL. I would still try to raise the price. They def arent going to take that jump next season. Honesty is always the best way to go. If they say no. If you have no contract and you want to stop tell them you will finish out the month if it hurts your wallet that much. That way its only a 2 or so more cuts and it doesnt kill you for the season.
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Old 05-15-2011, 09:22 AM
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I think I will be honest and tell her my mistake. I feel like if I try to up the price to 55 from 35, it will be a shock. She might be more comfortable w/ 45. I'd still be too low, but it would be better than the current price.

My plan is to tell her I made a mistake and that I should really be charging around 55-60 for that size lawn.

Then I guess I'll see how she feels from there. If she's agreeable, great. If not, I'll tell her I understand that she's upset, but that I cannot continue to cut that lawn for 35. The lowest I could possibly do it for is 45. I'll finish out this month at the 35 price, but after that, I'll have to up the price.....

Does this sound like a reasonable approach?
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Old 05-15-2011, 09:36 AM
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Sounds good. Finishing out he month is a good approach (keeps the client from feeling cornered). If it is a reasonable person it will probably work out for you.
Framing it as a business decision (not a personal decision) helps too.
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Old 05-16-2011, 10:40 AM
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Quote:
Originally Posted by element009 View Post
Hey guys,

I recently quoted someone 35/week to cut their lawn. After cutting it twice, I realized I underpriced this job severely. I think I should've quoted 55 or 60. I have no idea what I was thinking when I went on the estimate. I must have been tired or something.

Anyway, I don't want to lose the client, so I'm thinking of just biting the bullet for the year because it's a good neighborhood to be in.

Is there any way I can approach the client about raising the price now without ticking them off? Suggestions?
Whats your plan so this doesnt happen again? Do you have some kind of standard to bid by that way if your tired it doesnt matter...This happens to alot of us probably. Walking up to a lawn and thinking - oh i could do this for about $50 - is not the best way to bid if you know what i mean...
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