# What do you say?



## mongo (Jun 26, 2010)

How do you handle a client who thinks that your price for a job is "pricy" (15% profit margin)? The client sort of got an attitude about the price and hinted that he was going to spread the word to others to avoid me.

I knocked the profit off the job and did it at cost. Did I do the right thing? What would you do in this situation?


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## user2090 (Sep 26, 2009)

I think that you made a mistake. You should take a stand, and be able to give a reasonable defense for what you charge. If you are licensed, insured, competent plumber, how can they determine what is fair to charge. Someone is always looking to take advantage. You should have fired them on the spot, and recommended they hire a handy-hack if they want it for cheap.


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## Redwood (Sep 8, 2008)

You shouldn't make a profit on your work?:whistling2:

Sounds like a customer that needs firing...


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## ranman (Jan 24, 2010)

I would say thank you for time, and leave. your price is your price. if you belive in it? stand firm. you cant haggle the price of your groceries from wall mart.


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## Redwood (Sep 8, 2008)

Maybe you want to have him build you a new house on a 0% profit margin...

If he doesn't you'll put the word out he's overpriced...:whistling2:

See what kind of deal he'll cut you...


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## Titan Plumbing (Oct 8, 2009)

I have fired several clients that were always nagging about price, screw 'em.

My wife asked "what if they tell their friends, etc?"..........my response is, their friends are either just like them or know what type of person they are.........

I agree, I think you made a mistake, just chalk it up and don't ever do it again. :thumbsup:


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## irishplumber29 (Jun 23, 2010)

we go through that all the time, especially now. we play good cop bad cop with our manager over the phone, and if that dosent work ,if it will be a somewhat easy job and you know your covering materials do it or another company will, and then they are taking food off my plate. Not all cases of course but you can tell


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## ROCKSTARPLUMBER (Dec 14, 2008)

My response:

Im too high? Maybe you are high? Maybe you are just a cheap son of a biotch. How does that make you feel?


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## irishplumber29 (Jun 23, 2010)

ROCKSTARPLUMBER said:


> My response:
> 
> Im too high? Maybe you are high? Maybe you are just a cheap son of a biotch. How does that make you feel?


i like that response better


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## pauliplumber (Feb 9, 2009)

Provide exceptional service and charge accordingly. It's really that simple. 

I just had a house flipper try to beat me down on my prices, I wouldn't budge. He told me he does 10-12 houses a year and would give me a lot of work. I told him I have all the work I can keep up with using my current pricing structure, it wouldn't make business sense to lower my prices for you. I said you will get better overall value by using a plumber you can trust and depend on that's an expert in residential.

If he doesn't call me back then good, he just want's the cheapest guy he can find.

If he does call me back then good, he's accepted me on my terms.

I find it kinda strange that your asking if working for free is the right thing to do. especially after he threatened to spread the word to avoid you.


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## Titan Plumbing (Oct 8, 2009)

pauliplumber said:


> Provide exceptional service and charge accordingly. It's really that simple.
> 
> I just had a house flipper try to beat me down on my prices, I wouldn't budge. *He told me he does 10-12 houses a year and would give me a lot of work*. I told him I have all the work I can keep up with using my current pricing structure, it wouldn't make business sense to lower my prices for you. I said you will get better overall value by using a plumber you can trust and depend on that's an expert in residential.
> 
> ...


Carrots are fine as long as I get to actually taste them..............


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## SlickRick (Sep 3, 2009)

My response would have been based on temp. Above 95 degrees, it's just a straight up KMA.


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## gear junkie (Jun 20, 2008)

Your customer just learned by whining a bit about the price, he be able to run your business to get the price he wants. Yes, for that particular job, you handed over operational control of your business to the customer.


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## Plumber Jim (Jun 19, 2008)

mongo said:


> How do you handle a client who thinks that your price for a job is "pricy" (15% profit margin)? The client sort of got an attitude about the price and hinted that he was going to spread the word to others to avoid me.
> 
> I knocked the profit off the job and did it at cost. Did I do the right thing? What would you do in this situation?


You learned a valuable lesson.. Don't EVER do that again. your price is your price. If they want the price to be lower then it has to be justified by a cheaper fixture or less work etc.


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## tungsten plumb (Apr 15, 2010)

I would have laughed in his face while I was either walking out the door or hanging up in his face. I don't tolerate people trying to haggle with me. This isn't the flea market and this isn't a country based on the barter system. Either I get the price I ask or you can call the handyhack off of craigslist. My father-in-law/partner says I'm an a-hole sometimes but hey I don't go to their place of business asking for handouts.


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## Richard Hilliard (Apr 10, 2010)

*what do you say*

I really like sales and what it has done to help me become a better person and employee. I am a student of sales and have learned quite a bit. Sales is not just about selling more or getting a client it should be about helping the client and doing it for him or her instead of to him or her. Sales training helps answer questions, concerns and objections.

I do not mind clients asking for a cheaper rate. Look many people do it and many more give it. I have listened to top sales experts and many will offer advice to a client that states it is too much to ask how much do you think it should cost or how much did you expect to pay today for this. I am not a fan of that type of question and my reasoning is that it suggests to the client they can give me a ridiculous response.

 I ask two questions and those questions are why do you feel that it should be less or ask compared to what? Then I ask, in this way how much too much. Do not say how much is too much. Hey business is emotional and psychology is involved as soon as we accept this and start using this as a methodology we can increase our earning potential without giving in to a demand of lower your rates. With asking how much too much the psychological answer normally is relatively close to the price you have suggested. If I charge 400 dollars and I ask how much too much they may say 100 dollars. I can answer a one hundred dollar difference very easily over I wanted to pay 100 dollars for this and have to justify 300 dollars.

Sit down and make a list of why more people use you. These are all responses to build value and the exact reason why more people use you. Licensed,bonded ,insured, easy to get hold of, offer, you know it works, you know it is safe, you know who to call, warranties, clean up after yourself, take the debris with you amount of years in the business, use time tested materials, know what the climate is and understand what works best in your area, how long you have been in plumbing, fully stocked vehicle, you have a physical address instead of po box. 
These are just a few of the items that almost everyone here has and can list off in seconds to the home owner as benefits to the home owner.

Think on the level on how we buy merchandise for our shops, we may call all three or more of the supply houses for the cheapest price on water closets, faucets etc but we complain when our clients do that to us. I hope this helps those who want this type of help.

I discovered when I become defensive about my price I only create more adversity and it becomes combative.


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## Richard Hilliard (Apr 10, 2010)

*what do you say*

A really great book that allows more understanding of objections is; The Art of Closing the sale, by Brian Tracy.

Here is another link that is like an on line library that can help with small businesses.
http://www.managementhelp.org/sales/sales.htm


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## breid1903 (Feb 8, 2009)

*mongo*

now he will spread the word that with a little biitching you will knock all the profit out of the job. do you do this for everyone? breid..................:rockon:


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## OldSchool (Jan 30, 2010)

First mistake was your profit was to low

Minimum mark up 50% on material to what ever max you can get. ( 100% to 200% )

If your price was high to begin with you would have never worked for that guy in the first place.

How did he know your cost? You must have showed it to him.

Never show the customer your cost of material. That is confidential information that should not be shared with client.


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## gear junkie (Jun 20, 2008)

Richard Hilliar said:


> Think on the level on how we buy merchandise for our shops, we may call all three or more of the supply houses for the cheapest price on water closets, faucets etc but we complain when our clients do that to us. I hope this helps those who want this type of help.


Huge difference between shopping around and telling the supply house that they'll sell me a part for $***x. If someone doesnt like my price, then they're free to use another plumber.


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## copperhead (Dec 26, 2009)

Is it me, am I not reading the writing on my computer screen correctly? You mean to say that you work for FREE? Please some one correct me if I'm not comprehending what I'm reading.


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## Redwood (Sep 8, 2008)

copperhead said:


> Is it me, am I not reading the writing on my computer screen correctly? You mean to say that you work for FREE? Please some one correct me if I'm not comprehending what I'm reading.


Well at least he didn't donate the materials....


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## GREENPLUM (Jul 27, 2008)

mongo said:


> How do you handle a client who thinks that your price for a job is "pricy" (15% profit margin)? The client sort of got an attitude about the price and hinted that he was going to spread the word to others to avoid me.
> 
> I knocked the profit off the job and did it at cost. Did I do the right thing? What would you do in this situation?


 
your old enuff to know better sir


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## copperhead (Dec 26, 2009)

Just another thing thats puzzling me is. when you say "I knocked the profit off the job (15% profit margin ) and did it at cost." Do you mean on a normal job you take the total amount of the material and mark it up 15% and that is your total profit for that job? Again please correct me if I'm not comprehending what I'm reading.


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## Richard Hilliard (Apr 10, 2010)

*what do you say*

Gear Junkie, point being both types of a sale have someone looking for a cheaper price. I know I have called a few supply houses for a price and then called back my main supplier asking for the lower price and I am real sure that is not limited to me doing this. You are correct the situations are different but the price issue is still a price issue and we are dealing with a price issue. 

I think Mongo and all of us understand that this is a lose lose situation with type of call and person. How does he prevent this from happening in the future? I am taking a liberty here and understanding it would not matter if a price was given up front or at the back end. We all have had clients negotiate price after the job was completed.
1. Walk away from this type client
2.  Learn how to convince and guide
3. Take the money and fire the client
4. Deal with the bad mouthing
Someone mentioned that his friends already know how this guy is and will take that at face value. This is actually taking a chance that he acts this way all the time.


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## OldSchool (Jan 30, 2010)

This is a prime example of why to keep your prices high... it weeds out the deadbeat customers.


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## Titan Plumbing (Oct 8, 2009)

Richard Hilliar said:


> Gear Junkie, point being both types of a sale have someone looking for a cheaper price. I know I have called a few supply houses for a price and then called back my main supplier asking for the lower price and I am real sure that is not limited to me doing this. You are correct the situations are different but the price issue is still a price issue and we are dealing with a price issue.
> 
> I think Mongo and all of us understand that this is a lose lose situation with type of call and person. How does he prevent this from happening in the future? I am taking a liberty here and understanding it would not matter if a price was given up front or at the back end. We all have had clients negotiate price after the job was completed.
> 1. Walk away from this type client
> ...


That *someone* was me. With you being the consummate salesman that you are, I would think that by now, you would have figured out that a tiger rarely changes his stripes.

So as far as me "taking a chance", I have learned throughout my years that this is a pretty safe bet/chance. And as far as him telling his friends........."Birds of a feather-flock together" so I'm out.........


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## tungsten plumb (Apr 15, 2010)

Richard Hilliar said:


> A really great book that allows more understanding of objections is; The Art of Closing the sale, by Brian Tracy.
> 
> Here is another link that is like an on line library that can help with small businesses.
> http://www.managementhelp.org/sales/sales.htm


Thats a great book I read it back when I was I was doing sales.


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## CSP Drain (Jun 15, 2010)

If a customer has a problem with the price you can either explain how you need food on your table too. I've used that a few times and usually hear an apology after.


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## Mongrel (Mar 4, 2010)

CSP Drain said:


> If a customer has a problem with the price you can either explain how you need food on your table too. I've used that a few times and usually hear an apology after.


That's close to what I've done or said...

I told a contractor recently that I try very hard to be fair, but I will NOT take food out of my kid's mouths so he can send his kids to college. He hasn't called back...

I also told a guy "Mr. Smith, I am not the plumber for you." After he complained that my 'first hour' service rate was too high and offered to pay me HALF of what I quoted him. This was for a "no hot water" in a duplex job almost an hour away after 7pm at night. He hasn't called back either...

One of the best things I've ever been told regarding pricing 'strategy' was this:

"You can stay home and lose money, no need to get dirty and lose money."


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## tungsten plumb (Apr 15, 2010)

Mongrel said:


> That's close to what I've done or said...
> 
> I told a contractor recently that I try very hard to be fair, but I will NOT take food out of my kid's mouths so he can send his kids to college. He hasn't called back...
> 
> ...


Truer words have never been quoted. I will rather stay home and watch cartoons with my kids then go and work for half of my rate.


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## Richard Hilliard (Apr 10, 2010)

*What do you say*

I am down with a bad back and have some spare time waiting for the chiropractor to snap me back into a straight line and walking upright again. Three cheers for chiropractors helping tradesmen.

Choctaw I am not debating what you have said you’re right rarely does a tiger change stripes. I would prefer that he or she tells 3 friends how great we are than ten people who share his or her view even if it concerns negotiating. I also realize that I cannot make everyone happy. I want to know what the customer is comparing my prices to and who. If it is a handyman I can win that debate. Comparing price to another qualified plumbing company makes it more difficult and I need to express the differences that separate me from the competition. A huge advantage to discover is why he or she did not call that company back again. If they were so happy with the other company in the past then the obvious question I ask myself is; why am I here? Use that as a point of persuasion and a reason to use you and pay your prices.

Usual responses from customers to that question is, they did not return my call or they have not shown up yet and it has been days, the last guy was not on the ball, it took them forever to get the job completed, they were a slob and did not clean up afterwards. These are all reasons to use me.

Sure there are some that cannot be won over and it does not make much sense to give money back to a client that will never use you again. Giving money back does not insure the customer will not bad mouth your company. I can attest that no one wins when both the client and I become defensive and start defending why I am the price I am. Each person becomes more upset and things are said that should not be said. I would rather discuss price then shoddy work any day. It is easier to help the customer understand price than something done wrong.


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## pauliplumber (Feb 9, 2009)

mongo said:


> How do you handle a client who thinks that your price for a job is "pricy" (15% profit margin)? The client sort of got an attitude about the price and hinted that he was going to spread the word to others to avoid me.
> 
> I knocked the profit off the job and did it at cost. Did I do the right thing? What would you do in this situation?


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