Negotiating prices?


#1

I submitted a bid for a commercial job that I believe was a fair price. However, I realized I would rather land this one and make less than make nothing at all as this would be filling a crucial need for me (42 convenience stores monthly) and would be a game changer business-wise and honestly life-wise. Was thinking of following up that if price becomes the determining factor and the differences aren’t too great that I would be up for negotiating. Does that seem like a decent plan or is it dumb? I would hate to lose a 15-20k/yr job because of a few hundred a month price difference.


#2

It depends on what they want to negotiate down to. 99% of the time negotiations aren’t acceptable. But if it would still be worth it to you, then I would perhaps consider at least seeing what they are offering.


#3

How much over their budget do you think that you over bid it?
If $39 per month per unit (42 units x $39 each x 12 months = $19,656) is too much for them Then can you deal with 42 x $25 x 12 = $12,600? Yeah, expect them to shoot for the basement or below.


#4

So happy to hear you have this opportunity, Daniel!
This can be a two-edged sword if you look at the big picture. What if it becomes so all-consuming at a price you end up resenting as newer, more profitable accounts become available?
Is there a way to focus on your reliability and proven quality? This company may care, but also may not care. A lot to think about. I hope this works out for you, bro!


#5

Thanks Dan!


#6

Remember to negotiate price, scope, schedule. If they counter price, tell them what their price buys them for Scope/Schedule.

Sometimes, when they hear what their price gets them, they’ll be like, “Eh, let’s go with the original.”

A lot of it is feeling the situation out. But it would be wise to wait for them to counter, instead of bidding against yourself.

Best wishes Daniel. It really could be a game changer and it’s a great feeling when it comes to fruition.


#7

Great advice, Jordie. I’m just worried about another bidder getting it and me not even getting the chance to negotiate. That’s why I’m thinking of offering first.


#8

that’s exactly the point, in all probability, THEY are auctioning off their work to the lowest bidder

the fear of no additional interaction is exactly the point in most cases, driving you to your LOWEST bid based on fear of loss (think of city bids in sealed envelopes = no further interactions)

in most cases, calculated, manipulative and by design, after all it essentially is an auction for lowest price

in few cases someone likes you and they are looking for other things in addition and properly looking for lowest bidder AND best service provider based on qualifying criteria, and will communicate with you further

unfortunately in most cases, commercial is just a new manager going to show his stuff to get props from the powers that be and looking for a lower price for kudos on reducing budget or proving a case to go “in house”, or just kicking tires to see if they can get a lower rate than they currently have

don’t let your fears end up being a manifestation of their manipulations


#9

Wow, words to live by!


#10

Daniel

If you really want this job it doesn’t hurt to call an see where there at.

Let them know that you feel your price is fair , but you’d be willinng to work with them if need be.
After you get a feel !!!

Let them know your owner operator. With other companies they will be sending labor
Don’t talk discount yet , just I can work with you.
Know In your head the lowest you would do it for.
If it’s 12,500.00. Never start off with 12,500.00

If I feel price is the deciding factor an I want the job I’ll say look I can work with you is price the deciding factor here.

How’s 13,500 will that work that’s fair price especially for a company like mine.

Wait get a reaction if he bails give him the final offer

Jim the lowest I can An am willing to do it For is 12,500.00, anyone doing cheaper than that I have to question.

Then it if he balks then good riddiance

Now this is only if the price is still profitable.
Did you leave room or did you bid tight ?
It’s always up to you A price you want an a price your willing to do it for

The price can always go up after a year of showing these bozos your doing a good job.

I’m my eyes therr is nothing wrong with negotiating what do you have to lose.
As long as your ok with the price drop An it still makes sense

An yes I agree with Bruce … price is usually the deciding factor , but we still have to give a proposal.
An always give the price you want them of you still wan the job an they aren’t biting … negotiate Who cares !!!
What do you jace to lose . Nothing as long as you are negotiating on your terms

Supply an demand. If your busy , an you don’t need the work ,then why would anyone negotiate. If you need the work then why not.

An yes they might be just so ridiculous with what they want to lpay out , then tell them to call you in a year from now where there not happy, Becuse I’m the guy that’s willing to do the job right at a fair price.


#11

Waaait a minute. How does he know the guy’s name was Jim? You better jump on this now @WVWindowWashing


#12

Personally, I would stick to my quote. I am always nervous about having so much of my income coming from one source or customer. It’s nice when it works, but if they start slow paying or even have to drop the service, it’s a huge, stressful hit. If the bidding process is this stressful for you, image how it will be if they try to cut your prices or not pay. Just my thoughts.