|
| ||||||||||||||||||
 |  |  |  |  |  |  |  |  |
| |||||||
 |
| | LinkBack | Thread Tools | Display Modes |
7th September 2008, 04:29 PM
| #1 |
| Semi-mature vigorous tree Join Date: Dec 2007 Location: Olympia, WA, USA
Posts: 84
|  How do you handle when you've underbid a job?
What do you do when you have underbid a job to get a better outcome? Sometimes trees are bigger than they look, closer to objects than they look, or you just underestimate the effort that it will take? As a business owner or foreman, what are some things than you've done, aside from just finishing the job, to try to renegotiate? How do you respond when its obvious to all parties that the job should have been for more money? How do you respond when they ask how you typically figure the costs, and what you'd bid it at knowing what you do now? |
|  |
|
8th September 2008, 03:24 AM
| #2 |
| Former Member Join Date: Aug 2008 Location: Perth
Posts: 307
| Re: How do you handle when you've underbid a job?
It may sound trite but I simply wear the loss. I own the company and hocked my house to do it so profit is very important to me. Contrary to some opinions, profit is not what you put in your pocket today alone, but rather a balance of money today and business tomorrow. I have "shot myself in the foot" many times. It's part of the learning curve. I tell myself I will improve at the next job and record any ways I think I could do it better. You win two ways thinking like this. First, you gain experience. Second you gain the reputation of always keeping your word. The second is by far the greatest long term benefit to you and your business. Best of all, when my client knows I took a loss, they have often offered me more money anyway. I accept if offered, but I simply do not ask.  |
|
| |
|
8th September 2008, 01:42 PM
| #3 |
| Part of the Furniture  Join Date: Jun 2007 Location: orlando,fl
Posts: 4,948
| Re: How do you handle when you've underbid a job?
I can always make more money by doing a real good clean up afterwards  none of my competition will do it but then again none of them have climbers.I also work 7 to 7 7 days a week and offer 24 hour emergancy work.You'd be suprised at how much customers appreciate a good clean up.
__________________  Have your say join us today. old schooler |
|
| |
|
8th September 2008, 05:25 PM
| #4 |
| Former Member Join Date: Aug 2008 Location: Perth W.A.
Posts: 84
| Re: How do you handle when you've underbid a job?
NG - Couldn't agree more. People call us to solve their tree 'problems'. If there is crap everywhere when you have finnished then you haven't really solved the problem, just bought it to ground level. I am fond of saying - we do the cutting for free, its the clean up that costs the money. Be careful you don't say this before the job is completed though. Some smart a55 will want to dispose of their 20m cyprus using their wheelie bin for the next 104 weeks. |
|
| |
|
8th September 2008, 08:26 PM
| #5 |
| Admin - Owner Palm & Tree Services in Brisbane  Join Date: Jan 2007 Location: Brisbane
Posts: 12,994
| Re: How do you handle when you've underbid a job?
If you stuffed it up real bad, dont start and tell them so well before hand, otherwise suck it up and cop it sweet.
__________________ |
|
| |
|
8th September 2008, 09:00 PM
| #6 |
| Veteran Heritage Status  Join Date: Jan 2007 Location: Australia
Posts: 1,727
| Re: How do you handle when you've underbid a job?
Same as above,have the balls to say so or suck it up and do the work.
__________________  Drouin Tree Services | Excavator Hire - Drouin and SE Gippsland | Landclearing Melbourne |
|
| |
|
8th September 2008, 09:11 PM
| #7 |
| Mature Tree Join Date: Feb 2007 Location: Melbourne, Victoria, Australia.
Posts: 1,594
| Re: How do you handle when you've underbid a job?
Repeating the above, suck it up, think of it as a cheap lesson. There are no losses in life, only wins and lessons. You only lose when you dont get the lesson. When it seems like you keep losing, youre really just not getting the lesson. Do your numbers, figure out your break even, figure out your hourly rate, then be realistic about what you & your team are capable of, how long it will take & do the sums. |
|
| |
|
8th September 2008, 10:29 PM
| #8 |
| Mature tree  Join Date: Aug 2008 Location: Western QLD. Australia
Posts: 282
| Re: How do you handle when you've underbid a job?
Yep I agree. I have just started this buissness myself and have shot myself in the foot on numerious occasions. But now I take photo's of the tree's then go home,have a real good look again,then work out the quote. It is sometimes a costly loss but you have to start somewhere,and I find I can get better each time with knowing whats involved. Just suck it up and do the work.
__________________  Q,Q's Tree & Garden Maintenance FAMILARITY BREEDS CONTEMPT |
|
| |
|
9th September 2008, 01:45 AM
| #9 | |
| Semi-mature vigorous tree Join Date: Dec 2007 Location: Olympia, WA, USA
Posts: 84
| Re: How do you handle when you've underbid a job? Quote:
I never ask for more money as I know that I made the proposal to them, and they accepted the terms and dollar amount. When it comes up in conversation with them, from me or from them, that its more work than I bargained for, I usually just say, "you win some, you lose some." If they ask the value of the work (let's say its $500 more), I feel that its not fair to them to pay the full amount, as that is a significant amount extra that they were not expecting. Each case will be its own. Sometimes, I might suggest to split the difference, and ask if $250 more feels fair to both of us. Hopefully, this will lead to more work with them, and their referrals, making up the $250-$500, and more. Just curious how people deal with this situation where they are offering to be paid more because the customer values the quality service, and we don't start cutting corners to try to make up time. | |
|
| |
|
9th September 2008, 05:35 AM
| #10 |
| Part of the Furniture Join Date: Jun 2007 Location: orlando,fl
Posts: 4,948
| Re: How do you handle when you've underbid a job?
Also remeber,its okay to give a higher than normal bid,you can always come down on your price,you can't go up.
__________________ Have your say join us today.old schooler |
|
| |
|
10th September 2008, 10:21 PM
| #11 | |
| Mature tree  Join Date: Oct 2007 Location: Behind Your Sister!
Posts: 328
| Re: How do you handle when you've underbid a job? Quote:
__________________ Euthanizing South Australian Trees  since 2007
| |
|
| |
|
10th September 2008, 10:46 PM
| #12 |
| Part of the Furniture Join Date: Jun 2007 Location: orlando,fl
Posts: 4,948
| Re: How do you handle when you've underbid a job?
suck it up until you get him then 
__________________ Have your say join us today.old schooler |
|
| |
|
11th September 2008, 04:39 PM
| #13 |
| Sappling  Join Date: Apr 2008 Location: Portland, Oregon
Posts: 36
| Re: How do you handle when you've underbid a job?
Good responses by all! I would never ask for more money after an agreed upon price, and I hate it when somebody does that to me. I'm supposed to be the pro, and if I can't quote the price right on something out in the open, well then I'm not a very good pro, am I? How would you like it if someone offered you something for free, then later said "I really should have charged you $20 bucks for that!?" Coming in a little below bid has been so successful for me I try to do it all the time. I factor in little extra time, work or $$$ into the price, then show up with a lower bill. Like the story of the two girls working behind the ice cream counter: One puts a scoop on the cone, then takes a little away to get the correct amount. The other puts on a little smaller scoop, then adds some "extra." Which one makes you feel better? |
|
| |
|
11th September 2008, 06:57 PM
| #14 | |
| Former Member Join Date: Aug 2008 Location: Perth
Posts: 307
| Re: How do you handle when you've underbid a job? Quote:
This is the priinciple in business where the customer feels they got a deal. It can be as simple as NG's good clean up, or prune a shrub out the front when you removed the tree from out back, or even to stacking the firewood neatly if that was part of the deal. Remember that our customers are not tree experts, so telling them how well you pruned their tree has less of an impact than picking up your lunch wrappers. I am impressed with how many responses to this thread have been the same. It says a lot for business ethics in our profession when such a broad range of people would rather lose money than lose a customer.  | |
|
| |
|
11th September 2008, 06:57 PM
| #15 |
| Former Member Join Date: Oct 2007 Location: Bakersfield, Ca
Posts: 2,497
| Re: How do you handle when you've underbid a job?
Good idea bstewert! As far as "how do you handle when you underbid?" It's part of the game. Like others said, you learn from it. I know I've posted before saying stuff like "damn I really underbid that last job" but that's how you figure things out. Once you've got a good handle on it you just don't do that much anymore. Sometimes you really end up eating it in that learning curve too. Keeping it to yourself in front of customers and even employees allows you to remain professional looking, and at least makes you "look" like you're in control. Image can stand for quite a bit. And, as was mentioned, keeping a customer happy at the end of the day is worth far more in the long run than an extra $100 in your pocket for that day. Good Luck! |
|
| |
|
11th September 2008, 06:59 PM
| #16 |
| Mature tree Join Date: Aug 2008 Location: Western QLD. Australia
Posts: 282
| Re: How do you handle when you've underbid a job?
As long as it's Rum and Rason I don't care. 
__________________ Q,Q's Tree & Garden Maintenance FAMILARITY BREEDS CONTEMPT |
|
| |
|
12th September 2008, 12:11 AM
| #17 |
| Part of the Furniture Join Date: Jun 2007 Location: orlando,fl
Posts: 4,948
| Re: How do you handle when you've underbid a job?
On tusday,i underbid a job,not on purpose,there was one trailer load more of firewood than i had expected,so i just went back got it loaded up and then got the check,could've saved time and gave him 25 bucks and called it even,to top it all off,i blew both tires on my trailer.
__________________ Have your say join us today.old schooler |
|
| |
|
12th September 2008, 06:21 AM
| #18 |
| Former Member Join Date: Oct 2007 Location: Bakersfield, Ca
Posts: 2,497
| Re: How do you handle when you've underbid a job?
I actually PURPOSELY underbid a job by quite a bit .... but I got it! HAH! Then again, it'll be the first "tree work" I've had in..... um... 6 weeks? yeah.... pretty slow here. so I'll be doing 22 trees for $261. Thank god its just structural pruning along a drive so the trash truck can get through. A couple low branches here and there, mostly lifting and such. And, heaven forbid, they're so skinny that I'll be using a LADDER! *inserts evil music chords here, pipe organ stuff, really dramatic* I'm gonna rig a strap on top of the ladder so I can secure it to the trunk and up around a branch though. Hopefully I wont KILL myself with the damn thing. God I hate ladders. |
|
| |
|
12th September 2008, 07:25 AM
| #19 |
| Part of the Furniture Join Date: Jun 2007 Location: orlando,fl
Posts: 4,948
| Re: How do you handle when you've underbid a job?
Also set your line around the trunk on top of the limbs and tie in drt style,that way you can't fall.
__________________ Have your say join us today.old schooler |
|
| |
|
12th September 2008, 11:04 AM
| #20 | |
| Former Member Join Date: Aug 2008 Location: Perth W.A.
Posts: 84
|  Re: How do you handle when you've underbid a job? Quote:
 TherrinWith you on the ladder thing. What about sitting on top of your truck with a polesaw cutting a path as your groundie drives the truck VERY smoothly and slowly down the drive. Best of luck mate. | |
|
| |
|
12th September 2008, 12:20 PM
| #21 |
| Mature tree  Join Date: Aug 2008 Location: Bay Area Ca.
Posts: 355
| Re: How do you handle when you've underbid a job?
I usually try to get some oranges or lemmons from the yard. Latter I can sell em outa' the back of my truck.  |
|
| |
|
12th September 2008, 02:09 PM
| #22 |
| Monument Status  Join Date: Dec 2007 Location: Cincinnati, Ohio, USA
Posts: 2,119
| Re: How do you handle when you've underbid a job?
The more time in the profession the less you will underbid, or over bid resulting in loss of job. Just like studying or training, time in will make you a better bidder. You will find after wondering at times "did I bid too much, or the opposite" and the job nears completion that you bid the "right" amount. Also with more time one accumulates experience and better and more sophisticated equipment that make these marginal jobs come out. If things don't transpire that way your bill collectors will tell you, you are in the wrong line of work (or maybe you've been spending too much time in the tavern). But.....like others have stated, if you underbid you do the best tree job ever done by any one on the face of the earth....and shut up and eat it and move on. You get a serious bad rep if you cry for more and bad news travels fast. |
|
| |
|
12th September 2008, 02:30 PM
| #23 |
| Mature tree Join Date: Aug 2008 Location: Bay Area Ca.
Posts: 355
| Re: How do you handle when you've underbid a job?
Iv'e had pretty good luck with bidding, so far... I ride my bike to alot of tree jobs, underbidding bites hard when you leave the job with light pockets. I under bid a job in the city a couple years ago working for the pres. of the Natl. Landscape Assoc. U.S. 1hr ride once a week for a month. I only made 80 a day. I wanted to quit the first day... Here's my rig! |
|
| |
|
12th September 2008, 03:15 PM
| #24 |
| Part of the Furniture Join Date: Jun 2007 Location: orlando,fl
Posts: 4,948
| Re: How do you handle when you've underbid a job?
Your a better man than me,i drive a 94 f-150 that i coverted from fuel injection to points ignition and a carb intake.
__________________ Have your say join us today.old schooler |
|
| |
|
12th September 2008, 03:28 PM
| #25 |
| Mature tree Join Date: Aug 2008 Location: Bay Area Ca.
Posts: 355
| Re: How do you handle when you've underbid a job?
U legend! Thats cool, I gotta' 81 mazda...peice but it gets on it (not) Used to have a '72 F-150 drove it around for daaays, finaly gave it to a bro gettin' out of the pen...he was stoked. Check the mazdy power!! |
|
| |
|
13th September 2008, 01:51 PM
| #26 | |
| Monument Status Join Date: Dec 2007 Location: Cincinnati, Ohio, USA
Posts: 2,119
| Re: How do you handle when you've underbid a job? Quote:
| |
|
| |
|
13th September 2008, 03:39 PM
| #27 |
| Mature Tree Join Date: Feb 2007 Location: Melbourne, Victoria, Australia.
Posts: 1,594
| Re: How do you handle when you've underbid a job?
$261 + possible risk of death = Not such a good risk/reward ratio by my calculations  |
|
| |
|
13th September 2008, 04:37 PM
| #28 |
| Part of the Furniture Join Date: Jun 2007 Location: orlando,fl
Posts: 4,948
| Re: How do you handle when you've underbid a job?
Could be worse,could be palms.
__________________ Have your say join us today.old schooler |
|
| |
|
13th September 2008, 08:16 PM
| #29 |
| Mature tree Join Date: Aug 2008 Location: Bay Area Ca.
Posts: 355
| Re: How do you handle when you've underbid a job?
The ladder is my friend. Makes it quick...read some orchard ladder accidents, not nice. My uncle fell, gotta' lightning bolt scar on his forehead. |
|
| |
|
13th September 2008, 08:26 PM
| #30 |
| Former Member Join Date: Oct 2007 Location: Bakersfield, Ca
Posts: 2,497
| Re: How do you handle when you've underbid a job?
This stuff is maximum like 20 feet off the ground... too thin to climb like I said. <shrugs> It's money. I can't turn it down at this point. Especially since *I* approached *them*..... but it was a referral. Still, yeah... it won't be a problem. |
|
| |
|
| Thread Tools | |
| Display Modes | |
| |
Linear Mode
