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View Full Version : what to do if a customer never asks about price?



huggytree
12-12-2009, 05:33 PM
once in a while i get a call where they dont ask my price...they say 'come over an do it'....typically its a referral...when they live in a high end neighborhood i usually dont bring it up...

if a customer says to' come over and do it ' should i bring up the cost or just hand them the bill at the end?

the type of customers I WANT are exactly this type...my reputation brings them to me and they know ill be fair.....i still run into alot of people who dont realize a plumber is $100 per hour though, so i wonder how many of these customers are shocked....

it doesnt happen often that a customer calls w/o asking price...maybe once a month.

Patrysha
12-12-2009, 05:49 PM
It doesn't happen that they call without asking for a price, or it only happens once a month that they are shocked?

I think everyone knows calling a plumber is an expensive call.

huggytree
12-12-2009, 05:54 PM
I changed my post slightly...i made alittle clearer

i shock price shoppers daily

Patrysha
12-12-2009, 05:58 PM
I changed my post slightly...i made alittle clearer

i shock price shoppers daily

LOL

I think I'd just write up the bill and present it if they haven't asked. I might not ask the price but I'd likely ask about the methods of payment you accept...

greenoak
12-12-2009, 06:19 PM
i might not ask if it was from a friends reference and i had a rough idea/...still i think it would be smart and safer to give a general idea before you got started....in my experience, rich doesnt necessarily mean easy to please on price...lol...
ann

Spider
12-13-2009, 12:46 AM
It's only sensible to go, inspect the work to be done, prepare the bill, and get agreement before starting the work. Not leave it until after you finish.

If you are going to charge for going, so that if they don't want you to do the work after you tell them the price, then you need to tell them your visit charge before you go.

The Entrepreneurs Network
12-13-2009, 09:05 AM
Even if they don't ask. Give them an estimate and get their OK before you do the work. That way you will not have any hassles afterward. Maintaining good relationship with your customer is key. Don't give them any surprises.
Harry

<please set up a signature>

CBoykin
12-13-2009, 09:40 AM
I agree with Harry, Frederick & Ann. It is the professional way to do business - agree on pricing before the work begins.

huggytree
12-13-2009, 10:29 AM
thanks for all the advice...i am switching to flat rate prices instead of time and material.

ill give him a set price and get a signed contract before starting.

he's in the richest neighborhood...i typically have very good luck with the rich.(only run into 1 tight right guy)

Spider
12-13-2009, 11:25 AM
thanks for all the advice...i am switching to flat rate prices instead of time and material... Excellent! I've wanted you to do that for a long time!

This method need not be as restrictive as might be supposed. First, you can calculate using your anticipated time and cost of materials, then just give the client the lump sum price without the details.

Secondly, you can explain what you will do and what the price includes. You can, at that time (before work begins), also explain any circumstances you can see that might cause extra cost -- for example...

-- "These pipes are old, maybe, 50 - 60 years old. I will be as careful as I can, and I have included only for repairing what we can see is broken. But it is possible that the old joints are weak and that doing the repair causes other damage, and if that happens I will have to charge you for doing that extra work. Okay?"

-- "I can see that this part (explain) needs replacing and that's what I have priced for. It often happens, though, that this is caused by some other part (explain) but I cannot tell until I open up the equipment. If that other part needs replacing, too, I will need to charge you another $xxx. Is that okay?"

And so on.

This gives you the opportunity to give a fixed price but also warn the client - and give an additional price, when possible - that it may cost more. If you keep the client informed as you proceed with the work, pointing out various steps you are taking, this adds to their knowledge. An informed client is a trusting client.

There is another phrase that you should use at every possible occasion - "I had to do (this - explain) but I won't charge you for it." Customers love that!

Another one that works well, when you get the opportunity - "My price included for (item - explain) but I didn't have to do it, so I can reduce the price by $xx. Okay?"

Way to go, Dave. I think you are on the right track.

huggytree
12-13-2009, 12:59 PM
flat rate pricing is always great on basic projects which i can give over the phone...but odd projects which must be seen have the potential of me showing up and the homeowner saying NO...when i say T&M over the phone the price is already agreed to..(i have the job).....showing up to give a bid on a $200 project is risky...plus it causes scheduling problems...if i schedule 2 hours for a job and the homeowner says no what do i do for those 2 hours?

its something i HAVE to go to, but it has several problems which need to be worked out..charging a 'Dispatch' fee if i dont get the job helps, but is still a money loser.

If i get the jobs i will always make more $ on flat rate pricing.

T&M is a bargain because im a fast plumber......all my flat rate pricing is based off of what an 'average' plumber would take...

i do agree that many homeowners like flat rate because they dont have to worry about trusting that the worker isnt a slacker...the problem is that number can be shocking to people who think a plumber charges $50 per hour or less.

Ill change the post here....what &#37; of people realize a Plumber charges $100+ per hour?
I say 33%...definately not over 50%.......id say 5% think its $25

billbenson
12-13-2009, 03:38 PM
One other thing. If you like the client, you can say at the end, "It didn't take as long as I thought and I'm only going to charge you X". You will have a customer for life.

thx4yrtym
12-13-2009, 09:12 PM
Bill,

Totally agree with this approach. I refer to that as always leaving a little money on the table.

Can be an excellent lead in to asking for referrals.

Steve B
12-14-2009, 07:05 AM
FYI - billbenson's first name is not Bill. I must have learned this from a previous post.

Just didn't want anyone to get confused :)

Spider
12-14-2009, 09:04 AM
Not Bill? Perhaps another Steve!

huggytree
12-14-2009, 08:18 PM
did the job today....i mentioned how much it would cost...he said..'thats fine..whatever it is'....

then after i was done he just started walking around the basement throwing new idea's at me...i ended up doing 3 more projects and spending 3 hours at his house...

he was just thrilled to have me there...he said his plumber is as important to him as his doctor....he wants someone he can trust and his old plumber is retired.

he didnt flinch or seem to care about the bill...this was a 5 bath house...he was going to California tomarrow for the winter...

billbenson
12-14-2009, 08:30 PM
FYI - billbenson's first name is not Bill. I must have learned this from a previous post.

Just didn't want anyone to get confused :)

Other way around Steve. My last name ain't benson, but my first name is bill.

Steve B
12-15-2009, 03:43 AM
Oh - I knew there was something confusing ...

Good job HT. Wouldn't it be nice if they were all like this!

huggytree
12-15-2009, 06:36 PM
im on a lucky streak again.....they have all been great customers for a few weeks.

it will have to last a while to make up for the bad luck ive had for months....nothing but problems and problem customers.

i went from losing 20 jobs in a row, to selling the last 5 straight...the difference is all 5 were referrals and the 20 were cold calls.