Will you cut your prices?

Ron Musgraves

Exterior Restoration Specialist
Staff member
Will you cut your prices?

I just had a regional manager looking at accounting statements call me this week and ask me to cut my price 6 dollars on a 170 unit job.

To me this is 25 grand a year, I didn’t tell the regional manager he is crazy with fuel prices being so high.
I ask this guy to send over the RFP for the reduced price. His reply was I have no rfp, I said you kidding!

He says your cleaning sidewalks how hard can this be, I said really? We are just cleaning sidewalks in your agreement? He said yes.
I said six dollars less than the price now and alls we have to do is sidewalks? Yes he said, I replied I will do them for 25 less per unit. He said why have you been over charging us? I explain he didn’t have a copy of my agreement. He did not; we are doing buildings compactors and everything for that price. Now you just want sidewalks? I will make a killing discount you only 25.oo , the guy that was charging to much was the guy that’s bidding sidewalks only 6 dollars less than I’m doing everything.
He quickly said you have been doing our stuff for 15 years and we have never had an accident. I said you’re correct. He apologized and said he was very sorry for the misunderstanding and thanked me for explaining the service. He said they will be making no changes in the near future and that he will be letting the company know that put the bid in know they have been turned down.

Guys, please make sure your apples for apples and not oranges and apples.
 
Will you cut your prices?

I just had a regional manager looking at accounting statements call me this week and ask me to cut my price 6 dollars on a 170 unit job.

To me this is 25 grand a year, I didn’t tell the regional manager he is crazy with fuel prices being so high.
I ask this guy to send over the RFP for the reduced price. His reply was I have no rfp, I said you kidding!

He says your cleaning sidewalks how hard can this be, I said really? We are just cleaning sidewalks in your agreement? He said yes.
I said six dollars less than the price now and alls we have to do is sidewalks? Yes he said, I replied I will do them for 25 less per unit. He said why have you been over charging us? I explain he didn’t have a copy of my agreement. He did not; we are doing buildings compactors and everything for that price. Now you just want sidewalks? I will make a killing discount you only 25.oo , the guy that was charging to much was the guy that’s bidding sidewalks only 6 dollars less than I’m doing everything.
He quickly said you have been doing our stuff for 15 years and we have never had an accident. I said you’re correct. He apologized and said he was very sorry for the misunderstanding and thanked me for explaining the service. He said they will be making no changes in the near future and that he will be letting the company know that put the bid in know they have been turned down.

Guys, please make sure your apples for apples and not oranges and apples.

I'm sure this is a stupid question, what is an RFP?
 
Ron...we deal with this every single day in the KEC world. Mr. Lowballer shows up and says he will clean the hoods for $150...the account calls (if they're loyal) and asks for lower price because company x just said they will do it for $150. I explain to them that yes, they will clean "the hoods" for that amount. What about the ducts, fans, filters, take care of the grease containment issues on the roof, etc..

They will do 1/5 of the job for 1/2 the price. They are actually MORE expensive when comparing apples to apples.
 
We lost a large fence cleaning and staining recently like this also. We were asked to give a price on cleaning 1100 ft of 6' high privicy fence both sides. After the HOA board looked at ours and another company they had the other guy clean one side and put Thompson clear on it. We never got a chance to revice the bid
 
I'd say 100% of my bids are not apple to apple comarasions to other bidders. Most times we are the only one with proper workers comp, uniformed, licensed, OSHA compliant, english speaking, etc.

It's not always the scope of work that needs to compare equally. This is where the difficulty lies for us trying to convey that to the Propety Managers etc. They generally don't care about those issues and only want to compare scope of work.
 
Very good points guys, thanks.
 
There's nothing more frustrating than having behind-the-scenes misconceptions or innaccurate criticism from competitors with your long term customers. Thats why I think continued friendly contact and even reminding of the job your doing and the specifics and extras you do for them is a good idea. Rons scenario where the guy didn't even know what job was being done is very common. I think most pm's want to hire someone good and cross sidewalks off their list and never think about it, and thats good for us as well but stuff can be going on - new managers, new owners etc so keep in touch.
 
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