Forum Discussion

rjackson1's avatar
rjackson1
Contributor 2
6 days ago

The first "NO" - How to handle customers who say your prices are too high when starting out?

After months of planning and calculating, I've finally launched my skid steer business. I've got most of my hourly rates set for the services and felt like they were pretty competitive but reasonable. Then the first opportunity to bid a job comes. Tell them the rate with a four hour minimum and small mobilization fee (that way I make sure it's worth the trip). There's the small pause and then the "Well, I haven't really looked around at prices for this type of work but I was really trying to stay around this much"

Odd feeling getting told no for the first time. A little deflating but more potential on the horizon. 

How did you guys handle the early stages of people essentially saying your prices are too high?

1 Reply

  • AnthonySalazar's avatar
    AnthonySalazar
    Jobber Ambassador
    5 days ago

    If they say no to you at the price you requested, you can always change the terms of the bid, the scope of work or remove like a guarantee but never lower your prices just because they want it done cheaper. The moment you start haggling on price, they immediately know you are someone they can try to nickle and dime you.

    So you can say something like "If you want to stay within budget, we can drop the minimum down to 2 hours and will do XYZ for you. At our original price, you also get our ABC Guarantee to make sure we complete everything to the standard we expect for our clients." That way, they can see why you're charging your higher price and the benefits of working with you instead of just doing the same work for less money.