Quoting troubles

Tue, 31 Aug 2021 10:08:13 GMT

go to see Welding Machine for Quoting troubles

Story time! I posted an ad on Craigslist the other day to try to get some more work for the metal fabrication business I started a few months ago. I had a woman contact me this morning about repairing an aluminum patio chair base that was pretty badly broken. She came here and showed me what she wanted fixed and I told her that I would try to fix it even though it was pretty badly distorted. I told her it would probably take me an hour, so I told her $50. She said "ok" and she said to text her when It was done. It took me twice as long as I thought to straighten it and weld it back together. I text her and I said that I was putting the final touches on it and that it took me twice as long to fix than I expected, so it would be $100. She comes by with her son this time and she said "I got your text, but why is it double now"? I told her because it took me 2 hours to fix it and she said "So if it took you 6 hours would you charge me $300?" I didn't know what I should say, if I was in the wrong or she was just being cheap, so I said "My mistake, just give me $50 then". I'm not always sure how to price or quote for stuff like that. I'm better with bigger jobs, which is most of what I have been doing. In hindsight I should have told her higher than $50 in case it did take me longer.
Reply:I used to do electrical contracting work, some very large projects, some very small.  Anything under half a days work, I quoted flat rate.  SOmetimes I met my hourly rate, sometimes I came under.  I never had to have those difficult over-run conversations.Over half a days work, I almost alway gave the customer a choice, hourly with an honest estimate/assessment of how long I thought it would take, or flat rate (which I typically padded by about 10% over my honest estimate) with no changes and a firm description of work to be done.  CUstomers almost always took the hourly, and they were happy.  I almost always got extra work out of it because "while you are here" always entered the conversation when I was nearly done.   THey knew I didn't mind the extra work, and they new it saved them $$ to have me do it while I was already there.  It might cost more in the end, but they got what they wanted, and neither of us ever felt screwed.Find some sort of balance in this realm, half day made sense for me because I had to travel to their location.  For you it might be 2 hours, etc.View these kinds of projects as customer paid training, don't feel bad about coming up short on a project.   Good training always costs you $$.Everlast 350 EXT       -        Thermal Dynamics Cutmaster 52         -         Rogue Fabrication M600 xHD tube benderMilwaukee 4208 Mag Drill          -         Shopmaster Eldorado Combo mill/lathe machine with DRO.
Reply:There are a few ways to avoid that situation:Give a quote estimate “range” : $50-100 depending on how long, and how difficult the repair is.(customer’s least favorite)Bill Hourly: (customers 2nd last favorite, they think you can “milk the clock”Flate rate: Sometimes you take losses on flat rate pricing, you can mitigate this some* by being good/thorough at accessing the repair.Flate rate for X amount of time + hourly thereafter.In this case, you might have called saying I’ve done 1 hours work, but there is still more to be done. I can continue the repair(give cost) or you can come pick it up, and just pay the $50. Tell her you apologize for the misquoted price/time, but unexpected things happen in this type of situation.Or Like you did: Eat the loss and hope she comes back/recommends more work for you. This is not always an option though.In any case, the customer will be happier to know the high end of what they are paying beforehand. The biggest thing that gets under a repair customers skin is a sudden increase in price. Only those who have enough cash not to care shrug that situation off.Last edited by Mmock4; 06-15-2018 at 01:34 PM.-Mark SmithMiller Bobcat 250Vulcan ProTig200Vulcan MigMax215Everlast PowerArc 210STLHypertherm PowerMax45 Xp
Reply:I’m with the customer on this one. After an hour you could’ve given her a heads up that it’s going to take longer so she’s not blindsided with double the cost. However, there’s a learning curve and we’ve all gone thru it. Brett
Reply:I have never understood working for yourself and present a client with an hourly quote?  Who monitors you?, why should I trust you to work rapidly?, and why should you work fast if charging hourly?  Even if you estimate hourly, give a flat rate. Perhaps add contingencies and hourly at some time after the flat rate time.  Rarely do you know how long small repair will take especially if you do the with care and preparation.  Flat rate is incentive to get it done ...You should have quoted $150 or more on the phone.  If she did not want you to do it at that price, then move on.Good luck
Reply:Originally Posted by DanRTStory time! I posted an ad on Craigslist the other day to try to get some more work for the metal fabrication business I started a few months ago. I had a woman contact me this morning about repairing an aluminum patio chair base that was pretty badly broken. She came here and showed me what she wanted fixed and I told her that I would try to fix it even though it was pretty badly distorted. I told her it would probably take me an hour, so I told her $50. She said "ok" and she said to text her when It was done. It took me twice as long as I thought to straighten it and weld it back together. I text her and I said that I was putting the final touches on it and that it took me twice as long to fix than I expected, so it would be $100. She comes by with her son this time and she said "I got your text, but why is it double now"? I told her because it took me 2 hours to fix it and she said "So if it took you 6 hours would you charge me $300?" I didn't know what I should say, if I was in the wrong or she was just being cheap, so I said "My mistake, just give me $50 then". I'm not always sure how to price or quote for stuff like that. I'm better with bigger jobs, which is most of what I have been doing. In hindsight I should have told her higher than $50 in case it did take me longer.
Reply:Originally Posted by tapwelderI have never understood working for yourself and present a client with an hourly quote?  Who monitors you?, why should I trust you to work rapidly?, and why should you work fast if charging hourly?  Even if you estimate hourly, give a flat rate. Perhaps add contingencies and hourly at some time after the flat rate time.  Rarely do you know how long small repair will take especially if you do the with care and preparation.  Flat rate is incentive to get it done ...You should have quoted $150 or more on the phone.  If she did not want you to do it at that price, then move on.Good luck
Reply:Originally Posted by DanRTStory time! I posted an ad on Craigslist the other day to try to get some more work for the metal fabrication business I started a few months ago. I had a woman contact me this morning about repairing an aluminum patio chair base that was pretty badly broken. She came here and showed me what she wanted fixed and I told her that I would try to fix it even though it was pretty badly distorted. I told her it would probably take me an hour, so I told her $50. She said "ok" and she said to text her when It was done. It took me twice as long as I thought to straighten it and weld it back together. I text her and I said that I was putting the final touches on it and that it took me twice as long to fix than I expected, so it would be $100. She comes by with her son this time and she said "I got your text, but why is it double now"? I told her because it took me 2 hours to fix it and she said "So if it took you 6 hours would you charge me $300?" I didn't know what I should say, if I was in the wrong or she was just being cheap, so I said "My mistake, just give me $50 then". I'm not always sure how to price or quote for stuff like that. I'm better with bigger jobs, which is most of what I have been doing. In hindsight I should have told her higher than $50 in case it did take me longer.
Reply:I just did a small job for a brother of a guy who gives me 3-4 smaller jobs a year .I quoted him a little high just in case I ran into problems .He parks his truck in a parking yard with 30-40 other trucks . Dropped the price a little bit ,gave him a handful of business cards. He was happy ,I was happy
Reply:Originally Posted by tapwelderI have never understood working for yourself and present a client with an hourly quote?  Who monitors you?, why should I trust you to work rapidly?, and why should you work fast if charging hourly?  Even if you estimate hourly, give a flat rate. Perhaps add contingencies and hourly at some time after the flat rate time.  Rarely do you know how long small repair will take especially if you do the with care and preparation.  Flat rate is incentive to get it done ...You should have quoted $150 or more on the phone.  If she did not want you to do it at that price, then move on.Good luck
Reply:Never have any you see work thereI did one I was making good money on the job every had quoted to work over $150.00 each , so was new and just want to some work. I said I would do work for $75.00each. It only took 10 minutes to do work. He watch me do work and quickly fig how per hour I making.DaveSent from my SAMSUNG-SM-J320A using TapatalkHF 170 welderHF 4x6 band sawSouth Bend 9NMillB&D mag drillVictor torch
Reply:No wonder you're from Jersey, them Jersey women are nothing but trouble, next time one asks you to do a job just tell her to forgetaboutit.Last edited by CrookedRoads; 06-15-2018 at 05:21 PM.***********************CR
Reply:Originally Posted by smithdoorNever have any you see work thereI did one I was making good money on the job every had quoted to work over $150.00 each , so was new and just want to some work. I said I would do work for $75.00each. It only took 10 minutes to do work. He watch me do work and quickly fig how per hour I making.DaveSent from my SAMSUNG-SM-J320A using Tapatalk
Reply:Originally Posted by BonzooNOBODY watches me work. I have a one hour minimum or take it elsewhere.I estimate things double and charge about half, in most cases. It makes for happy clientele
Replyuoting/estimating is an art. At times it can be the best learning experience that happens to an independent businessman. Unlike most, I still make mistakes when I quote work, although mine is more of a hobby than a primary income, but over time I have become more proficient at estimating exactly what the job is worth.Sometimes the retail market will drive your quote. For example: If a customer brings me a broken widget that needs a $100 repair and the new replacement cost is $50 and these widgets are readily available, I might tell/ask the customer that it doesn't make financial sense to do this repair. Then let them decide if it's worth it. BEFORE I START THE REPAIR. Changing the estimate after you've started the repair makes the customer feel like they've been tricked. You hooked them with a cheap price then, after they're committed, and kinda stuck, now you change the price.1) Never quote a job you're not sure of, or be willing to take a loss if you make a mistake on the estimate. 2) Stick to your quote! 3) If you have to change your estimate during the repair, be prepared to clearly explain the reasons, and to possibly lose the customer anyway. 4) If you are unsure of the job, quote hourly, then follow up and follow through so the customer is wowed and will be back in the future. 5) Stick to your quote. 6) Stick to your quote.$0.02*****It'll feel better when it quits hurting!*****
Reply:Originally Posted by nothsawQuoting/estimating is an art. ...........1) Never quote a job you're not sure of, or be willing to take a loss if you make a mistake on the estimate. 2) Stick to your quote! 3) If you have to change your estimate during the repair, be prepared to clearly explain the reasons, and to possibly lose the customer anyway. 4) If you are unsure of the job, quote hourly, then follow up and follow through so the customer is wowed and will be back in the future. 5) Stick to your quote. 6) Stick to your quote.$0.02
Reply:Originally Posted by tweake.if someone grumbles about how much you charge for the length of time, then show them the overheads and all the downtime. most people actually understand.
Reply:I do not like to do work for people that walk in off the street . The only reason I do some of it is that it is good word off mouth.  I do small jobs like the one you did very cheap. The reason is I have had people tell someone that has a business about me and has led to good work. If I do a job like that I just figure it as advertisement.  I do turn down most of that type of work though. Last week I did fix a set of steps on a tractor for a local farmer. It took me 1.5 hrs to repair and I only charged him $65. It will bring me larger jobs that I will bill at my regular rate.The other thing is I alway stick to what I quote on small jobs even if I am wrong. If I am going to charge time and material I tell the customer up front that the price I give them is just an educated guess and that if it takes longer it will be more money. I do usually give them a range like it will be between $150 and $300 depending on actual time it takes me. I also never charge more than my max if it takes longer .Once The customer is a regular I rarely give a price and it is t&m.  If they want a price I know they are shopping  to compare.Last edited by thegary; 06-16-2018 at 12:36 AM.
Reply:"The other thing is I always stick to what I quote on small jobs even if I am wrong."Roger that! I'm finishing a 7M skiff and I quoted a price. I've been at this for some time. I miscalculated, I figure by about 1K. That is MY problem, NOT the client's.
Reply:Regardless of the smaller dollar amount involved in this particular situation,,, the final charges were double the original amount. Double is substantial. There are cases where the repair could easily exceed the cost of replacement without some checks and balances. What would you do in a reversed scenario? Some states have limits set on overages that can be charged without prior consent."The things that will destroy America are prosperity at any price, peace at any price, safety first instead of duty first, the love of soft living and the get rich quick theory of life." -Theodore Roosevelt
Reply:Originally Posted by Chad86tsiI had some customers grumble at a product I made that clearly had a good hourly return on it, but I pointed to the gear I used build it with ($15K+) and the jigs and prototypes I had created (with hundreds of hours of labor).  That always ended the complaints.