Don't Use YOUR Number System In Pricing

41 replies
Prior to working online full time, I was a financial advisor. During that 5 years as one, I learned quite a bit about people that applies directly to how to price products now. I was working with people that had millions in their portfolios. A $500 commission on a big stock trade was nothing to them. (It was a lot to me at the time though). They didn't even bat an eye when I told them the totals. They are USED TO big numbers. They've lived with BIG NUMBERS their whole lives. They didn't get rich by thinking small. They got rich by being very comfortable with large numbers and you need to as well.

The first rule I learned is NEVER price things too cheaply. Never.

This is where people's "Number System" comes into play. Imagine a high school student working part time, making $150 a week at some crummy minimum wage job. To him, $500 is a lot of money. It would take him almost a month to make that much.

Now imagine a Dentist who makes $140,000 per year. (That's on the median for a general dentist). What does $500 represent to him? Not quite as much. This person would make that in a very short period of time, (Less then 1 days work). So their number system is different.

Now imagine a business owner who makes $500,000 per year. (Not out of the question at all). How long does it take them to make $500? A couple hours "work"? Their number system is also different.

Now let's assume that each of those people is looking for you to do a website for them. If you charge the business owner $250 for a full site, what do you think their perception is of the product you're delivering? Not much. In fact, they probably won't even do it. These guys LOVE bragging to their buddies about how much they spent on their newest car or their newest set of $5,000 golf clubs. They can't brag about a website that cost them $250. You have to charge them at THEIR number system level. In this case it's far higher then $250.

When you're starting out as an offline business consultant or web consultant or whatever you want to call it. You may not have much money. Your number system might be different then the clients you're after. Adjust your pricing to suit their system, not yours. Just because $250 or $500 may seem "steep" to you, don't assume it's steep to your potential clients. Look at what else they spend their money on to advertise their business. Get the rate sheet for your local paper. Those are ONE TIME runs of ads and they cost a small fortune. Get the rate sheet for national magazines. (hint you can find all these online easily).

So if one of your potential clients is paying $2,000 per day to run an ad for 5 months and you come along and offer them a website design for $250, what do you think they'll do? You need to add a couple zeroes to the end of that $250 and really blow them away with what you do.

Perception, pricing and their number system go hand in hand when getting an initial gauge of what you're offering. Don't shy away from numbers that you feel are "too big". Embrace them. Charge what you're worth but make sure it's something that they will value too.

Just my 2 cents.

#number #pricing #system
  • Profile picture of the author Rocket Media
    When I was 17 I landed an appointment with the owner of an enormous heating and cooling company. I walked in with gym shorts on and a t shirt after school and told him all about myself. I doubt he trusted me.

    Then he told me what he wanted in his web site so I started spewing out ridiculous terms and SEO stuff and eventually he was very impressed.

    I quoted him $750 and he literally DID NOT even blink before saying that's fine. he instantly said "thats fine so blah blah blah blah" and kept asking questions. I was so pissed that I didn't quote him in the thousands. I didn't do my research and found out later that his company was in the millions for annual sales.
    Local Client ARMAGEDDON Free Facebook Group: KILLER new local client consulting education group. Watch my live stream: Listen to me COLD CALL to sell/rent my Exterminator website. Join the Facebook group for the link and to watch past Live Prospecting replays. I share my spreadsheets, Powerpoints, contracts, and other files so you can learn how to CLOSE DEALS!
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    • Profile picture of the author Justin Chaschowy
      Originally Posted by Rocket Media View Post

      When I was 17 I landed an appointment with the owner of an enormous heating and cooling company. I walked in with gym shorts on and a t shirt after school and told him all about myself. I doubt he trusted me.

      Then he told me what he wanted in his web site so I started spewing out ridiculous terms and SEO stuff and eventually he was very impressed.

      I quoted him $750 and he literally DID NOT even blink before saying that's fine. he instantly said "thats fine so blah blah blah blah" and kept asking questions. I was so pissed that I didn't quote him in the thousands. I didn't do my research and found out later that his company was in the millions for annual sales.
      lol same thing happened to me when i was starting out. they got such amazing offers because we weren't very confident in ourselves and that's all. they'd have paid in the thousands for sure. live and learn though.

      good post and very true stuff.
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      • Profile picture of the author PPC-Coach
        I've been hearing it all the time now in my new ppc agency. People tell me all the time that so and so quoted them $100 to set up an account why do I charge $600 and that's just the base level?

        My answer now is simple, people charge what they're worth.

        I don't bash competitors but I tell my clients that I want to be known as the most expensive place. That is fine with me as it means I think I'm worth it and don't you want a guy who thinks he's worth more then everyone else handling your marketing?

        Confidence is key, NEVER negotiate on price. If a client is being cheap, double or triple your rate just to make sure you get rid of them, you don't want bargain hunters. They're the worst.

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        • Profile picture of the author Chuck Austin
          Good Post!
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          • Profile picture of the author mr_banks
            What a great post. Being in business for myself this is one of the most important lessons I had to learn. I sold my first website for $500, which was a lot of money to me at the time. Since then my prices steadily went up. Not by much but for a long time I was happy with getting $1000 for a site.

            Then one day I was watching a video by Mike Koenigs who made a reference to Dan Kennedy that when something like this.

            "In any business deal you will get as much money as you are comfortable asking for and can keep a straight face."

            This has such a profound impact on me that the next potential client I pitched I jacked my price up by a grand....and it worked!

            Two days later I got another lead jacked the price up by $500 again. I was riding the confidence wave and was comfortable asking $2500 but not quite $3000. Needless to say I got this one too.

            Going with the post, these would be MY numbers. Thinking back I know I could have gotten more money from almost all the client I have had. Every time, I pitched them with the number I was comfortable with.

            What I take away from this post is that even though I like my numbers. I have no problem building websites for thousands of dollars. I could be getting more if I pay attention to their numbers. If I know that THEIR numbers are high, I will be more comfortable asking for a lot of money and keeping a straight face.
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          • Profile picture of the author Centurian

            Right on comments! This is absolutely correct. In fact, businesses with bigger numbers don't even consider your services valid or valuable unless you charge "bigger numbers."

            It's quite amazing sometimes. A friend of mine provides an energy conservation service that we'd normally sell for a hundred thousand or two at best in a large institutional setting.

            The actual wholesale cost of each unit installed on each breaker is about $500. Even the diagnostic equipment we used in installation only cost $35,000. We also had other costs for bigger jobs, like engineering reviews, overhead, electrician and technician expense, etc. We obviously had expertise and proprietary knowledge, but consider the following.

            The pricing model was not based on cost or even expertise, but the resulting value provided. So if we can save a business $100,000 a year, we charged 25% of the savings. But this is multiplied by two to five years!

            He once was talking with a government facility about this service for a large number of buildings, but if his price wasn't in the millions, he couldn't even bid. So he increased his price accordingly.

            You see, many larger scale enterprises don't expect an immediate return on investment (ROI). It's not believable to them. My friend had to show a two to five year ROI with most businesses and institutions. The government wanted to see a ten year ROI.

            He could have shown a two year ROI, but they would not have considered it a valid bid. This was standard operating procedure based on their experience and standards. Amazing.

            Obviously, this pricing and scenario was based on quantifiable results. We could show actual charts and demonstrate value. But why can't you? You can use statistics to show the typical results of what you're offering. You can get testimonials for proof. If you have none, use industry norms.

            You can even get testimonials from the guy's WSO you bought. This is what his model produced and this is what you do. You don't present it that way. But if your testimonials are questioned you can say these are the results of my affiliates using this system. Sell the system, not your experience (unless you have some of course).

            Always consider who you're doing business with and what is the end or perceived value. When you're building a website, you're not building a website. You are building virtual real estate that millions of people may visit. This is their corporate image and impression. It's their virtual headquarters.

            How much did they invest or spend on their physical facilities? They selected the best location and improvements to present the image they desired. They expect the building to provide a certain image and statement of their worth.

            So, if you quote $395 they may consider it a cheap lunch. If you quote $1,995 to $4,995 they may consider this something to give their attention to. Believe me. There are companies who charge $50,000 to do what you can do for a few hundred. And they get it.

            If your service can really produce them hundreds of thousands of dollars, then why would you sell it for a few hundred. It must NOT be very valuable or you don't believe what you say. As the title of this thread says, do not use your number system.

            So start with considering these "higher numbers" of your prospect AND what the end value or benefit is.

            What's going to impress his friends? A guy doing a $395 internet marketing job, or a $20,000 a year SEO or PPC guy who's generating tons of traffic.

            Always have a pricing strategy and back-up plan ready. I remember one prospect who practically cussed me out because their perceived value of what I was offering was nothing (their "numbers"). And they had originally called me. Unfortunately, I couldn't diagnose or discover his "numbers" before the quote.

            In contrast, another client, who I did get paid from, responded quite differently to the same service and offer. When I quoted him he looked at me stunned with mouth open and literally said, "Is that all?"

            To which I immediately responded, "What about that other area you were concerned about?" So we then added some other services, which didn't really cost me a whole lot extra to include. This end price brought him up to where he felt quite comfortable. I was feeling quite comfortable as well.

            If it's hard to know who you're dealing with, then you need to provide tier pricing. One strategy is to offer a single service for a set fee, but also offer a higher bundled package and/or monthly recurring services contract.

            One study showed that when a three or multiple tiered pricing was presented, the vast majority of business owners chose the mid to upper range scale. They didn't choose the highest nor the lowest most often, but did select the upper range.

            Always offer a higher-priced premium upgrade, too. You'll find a few takers each year. You include higher perceived value items that don't really cost that much to provide, but really build value. Consider the typical bonus packages offered. Some people buy your product just for the bonus. They may already have your product, but want something you just threw in.

            If they are sold on what your offering, they want the most value. Never apologize for your pricing. Quote it, look them in the eye and shut up. Or you can just slide it across the table and say, "We just need your approval to get started." Then listen and observe for their response. That's all you need to know how to proceed. Sometimes you'll be quite shocked. Enough to stimulate a happy day...or year.

            You can't win them all, but the one's you do will be quite satisfying for all concerned.

            Price your profits accordingly.
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  • Profile picture of the author mjbmedia
    Originally Posted by PPC-Coach View Post

    Just my 2 cents.
    Isnt that a bit cheap?

    Way too many people undersell themselves. Occassionally if well considered it can be a good option if the long term benefits of the new client/ relationship will bring in serious back end profits but only rarely.


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  • Profile picture of the author Steve1776
    I just looked at the Dallas Morning News ad rate sheet. A full page ad costs $945 for one week. If you get 52 weeks its only $446 a week. So I think I'll find business that have a full page ad and see if they want a mobile website for $3,400 (the cost of a months advertising). I'll sell it to them and show them how to add / delete coupons. Of course I'll be more than willing to handle the coupons for them (at a reasonable fee ). Then we can talk about SMS, QR codes, email marketing, ect.

    You can get anything you want if you help enough other people get what they want.
    Losers fail and quit. Winners fail until they succeed.
    Indecision is worse than the wrong decision. You can fix a wrong decision, you can't fix indecision.

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    • Profile picture of the author beakbane
      Originally Posted by Steve1776 View Post

      I just looked at the Dallas Morning News ad rate sheet. A full page ad costs $945 for one week. If you get 52 weeks its only $446 a week. So I think I'll find business that have a full page ad and see if they want a mobile website for $3,400 (the cost of a months advertising). I'll sell it to them and show them how to add / delete coupons. Of course I'll be more than willing to handle the coupons for them (at a reasonable fee ). Then we can talk about SMS, QR codes, email marketing, ect.
      Love the quotes at the bottom-so true!
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      • Profile picture of the author RyanJ
        This is a great thread. Because of this I upped my normal price (which apparently was too low) by $1,000 even and they didn't think twice. Below is a great video completely relevant to this. I especially liked the very last statement he makes.

        How to Overcome Price Objections - YouTube
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  • Profile picture of the author KO
    There's some good posts on this thread. I'd just like to add two things: never think with your own pocketbook, and if they don't gasp when you quote the price, you didn't ask for enough!

    I'll give one more: the key to getting high fees (and remember "high" is a relative term) for the most part is learning how to keep a straight face when you ask for an arm and a leg (in your opinion).
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    • Profile picture of the author tsgeric
      Wow! thanks all, I have gained so much insight from this thread!

      Given the discussion about perceived value, what do you do when you run across a small business owner who *does* have enough knowledge to know how straightforward some of these technical tasks really are?

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  • Profile picture of the author dtang4
    Great advice!

    In pricing strategy, you should also price according to your target market. Even for the identical product, you may want to price discriminate across different demographics that have different levels of price sensitivity (e.g. movie tickets).
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  • Profile picture of the author Jason Kanigan
    May I suggest that the price of your product or service should be in direct relation to the size of the problem it is solving?

    Let me share a relevant portion of my upcoming ebook:

    "Say the prospect is a college that wants a student record database-driven website to track, offer and certify for online courses that run $500 apiece. Such a website, expertly put together, would allow the prospect to painlessly administrate 1000 students per term. There are three terms a year. In total, then, the solution would allow the prospect to earn an additional $500 X 1000 X 3 = $1.5 Million a year in revenue. So what is the website worth?

    "This is up to you, but the way I’d approach it is: people want a quick payback, less than a year. You’re solving a problem that has many inherent hassles and nitpicking detail to it. You could go the hourly estimate route for the project, and say it will take three programmers three months full time to get it done…and that would be 3 programmers X 3 months X 40 hours per week X 4 weeks per month X $50 per hour = $72,000. Let’s add on a 20% fudge factor because things always take longer than expected…that makes it about $87,000.

    "How much money did you leave on the table?

    "Assuming a six month payback, and going over all the specific pain points they want you to take care of, you could come back with a price of $750,000.

    "This isn’t gouging. You are solving a complex problem that will bring the prospect much more revenue. In fact, it’s a deal: say the website works well for five years without needing an upgrade; would you pay one dollar to earn ten over that period? I would, gladly! The important thing to note here is the difference between $87,000 and $750,000. Even at the three month payback point, the price would be $375,000. You’ve probably been selling your solutions too cheaply."

    Uncovering your prospects true budget is, like the rest of Sales, both a science and an art.
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  • Profile picture of the author Deidra Renee
    This is why it's important to get a good, targeted list. My business lists always come with the businesses annual revenue so this will help me a lot. Although I do pay attention to their revenue, I haven't always priced my services according to it, but I will thanks! And I agree that if you quote them a price and they don't hesitate, then you probably quoted to low. I've been in that situation plenty of times, where people just agree with the questions asked and I always regret not quoting higher. Another thing to think about, you can always start out high and negotiate lower, better to do that than start low and almost give everything away for free.
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    • Profile picture of the author midasman09
      WOW! This comes in at the right time for me.

      I'm setting up a "Mobile Site Directory" for my town and starting with working with Motels and the "Tourist" niche.

      Most Tourists, everywhere, carry a "Mobile Device" with them AND...they do NOT carry "Food" with them (other than some snacks) so....the first part of my "Mobi Directory" is "Where To Eat"....with exclusives for each Food Category (BBQ, Chinese, Greek, Italian, etc) and....instead of offering ONE choice of 6 Motels for BIG numbers....I will offer "2 Motels for X$....4 Motels for 2xX$ and all 6 for 3xX$....and....I'm alerting the Tourists in each of these Motels with QR Codes that bring them to my "Directory" site. And....I can set up 3 different Directories....with different QR Codes for each Group of Motels.

      Don Alm and running with another "Great" piece of info from the WF
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      • Profile picture of the author Jordan J Caron
        Thanks PPC Coach and all those who have replied. A month ago when a friend suggested I head offline to offer my services. He questioned why I was saying on my site that I offer a cheaper alternative to local web and advertising agencies.

        He said that if local agencies can charge in the thousands for web and graphic design, that I should be too. It's all about perception and if you are known as a cheaper solution, people will think you work will be cheap.

        I am targeting professionals who belong to Country Clubs and are buying new luxury cars. So what's a $2500 website or a $500 monthly SEO charge? Like you said, if they are already advertising, their spending that money and most likely generating non-targeted leads. With the internet, they can attract targeted customers to their site daily.

        Someone else said it best in this thread, don't think with your pocketbook.
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  • Profile picture of the author swilliams09
    This is why im focusing on offline. Part of the problem is if you've been here on the WF and marketing to marketers, you've been dealing with a cheap crowd. Offline is a whole different beast.

    Learn how to make videos that sell. Special $1 Offer for Warriors Only.

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  • Profile picture of the author Chris Rivers
    This is dead on.

    After years of buying $9.99 wso's and after selling a few cheap wso's of my own, I have to agree that most of us at the Warrior Forum have become jaded with charging (and paying) $5000+ for marketing services.

    However, in my non-offline marketing career, my marketing departments wouldn't think twice of investing $10,000 - $50,000 per month per marketing medium WITHOUT doing proper tracking.

    Then, all of a sudden when I went out on my own, I was petrified of charging $1500 for way more work than we used to require of bigger marketing firms who would charge upwards of $15,000 or more to ONLY design the ad layout and copy.

    It's unfortunate that many offline marketers don't have the same level of confidence in themselves, their products and services.

    While I agree that what many offliners provide is very valuable, I'm also convinced that we as offliners have to spend time working on our mindset and recognizing our own value before we can tell a prospect with a straight face that we charge $15,000 for a website and $7,500 per month in ongoing fees.

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    • Profile picture of the author Kunle Olomofe
      Happy to see a thread like this even in a tough economy... don't price low if you can price higher and deliver what is promised for what you're charging.

      I just closed 2 offline web design deals for around $2,200+ each following the same advice... I could have asked for much more considering this is a big client but I chose not to because the company has at least half a dozen more similar projects I will be bidding for. I figured (and was hinted by the client) that if I do a great job on these first 2 sites, the others would basically be in the bag, so that's $2,000 X 6 more jobs (at least) without any further marketing dollars spent.

      The funny thing is this client tried to get me to charge far less. I said no and stood my ground and charged what I felt was fair considering their "Number System" (PPC-Coach, I really like that concept by the way). Anyway, they're happily paying what I asked and hopefully will pay for more jobs at a similar price hopefully this year and early next year, so this advice works.

      As an aside...

      I wrote a best selling report about this titled "Proven Pricing Secrets" which I released in 2001. Thousands of copies have been sold to date and I'd like to offer that report free of charge to anyone who reads this post and wants to learn more about the right way to price their own products and services... there's absolutely no strings attached. Just feel like helping out a little. Just send me a PM if you're interested and I'll zip you a copy asap. Please note that this is a 10 year old report that though is relevant isn't recently updated and really focuses more on the gem of the day back then (which was mainly selling info)... but you can easily adapt the unchanging advice this report shares.


      Kunle Olomofe
      Celebrity Marketing Formula - How To Quickly Become A Celebrated Authority In ANY Industry/Niche... Coming Soon.
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  • Profile picture of the author profit scout
    This thread isn't even a full page long and the information presented here has been abundant and powerful!

    As you can see from my profile, I am new here.Trying to get my start in all of this offline business.

    Every bit of information here will help me get started properly so that I may best serve my clients. And make a good income too.

    Thank you to all who have contributed.

    Best to your endeavors.
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  • Profile picture of the author kulonuwun
    thanks for the post. make me more confident for pricing my quality product.
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  • Profile picture of the author CoachMikeH
    In my experience, I would never price anything less that $1,000. If you are giving deals to everyone, you are going to kill the market for web consultants in your area. Price your services with your competitors accordingly with the going rates so you won't lose your shirt and cause everyone else to lose their's too. Web consulting is time consuming and you need to get paid for the time that you are putting into each client. Real businesses will pay real money for good service. Challenge yourself and get better, and decide to offer premium services so that they will pay you premium prices. Don't back down. Somebody wise will pay you what you are worth.
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  • Profile picture of the author MrLeisureUK
    Thanks very much, great post and comments to boot. learned a lot and thankfully I now have the knowledge to ensure I dont make the mistake of under charging clients.

    **December 2015**
    I just left my 30 year career JOB after making 3 x more than my salary within 12 months doing Amazon FBA. Specializing in Private label health, nutrition and men's grooming products. Its the best business in the world, please check out one of my sites here

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  • Profile picture of the author joefalk
    Thanks for a good post!
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  • Profile picture of the author cnwoke24
    i need this information right now. thanks
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    • Profile picture of the author richrajeevkistoo
      Totally Agree- I sell web design services and I can sell the same services ranging from usd 500 to usd 2000. It just depends who you are talking to.

      Talking about bragging, this is very good point and sales technique. If I am in front of someone and have not put a number on the deal yet, I will get the person to brag and feed their ego as much as possible so that they big up themselves. Get them talking about all their expensive toys....

      then when it comes to talking business, they have put themselves on the higher end, they won't dare bargaining for lower prices.

      That was my 2 cents.

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  • Profile picture of the author qualityin
    really great post and opens up a lot of avenues. i think generally it all depends on confidence, usually even if you hit one of those clients who like to haggle and you dont bend, they usually come back to you in the end.

    i really appreciate the advice.

    and another tip...

    when you talk about making a website for $ 1000, you put your own time in.. having confidence enough to go out and sell it for a couple of thousands is key..that is if you have someone who is willing to vendor you the service at real good prices..

    i this vein i would like to recommend you guys explore affordable vendors for web solutions..this will ensure adequate pricing leverage to create a huge profit merely by selling a website, leaves you open to access more clients and make more money..
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  • Profile picture of the author rsabian
    Are we talking about charging $1000-$2500 for a mobile website?
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  • Profile picture of the author celenco
    This is so true, make sure you charge them according to what they are worth.
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  • Profile picture of the author neevedu
    Thanks for sharing friends.
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  • Profile picture of the author websitemagnetics
    This is easily one of the very best forum threads I've ever read. Thanks to everyone who contributed their thoughtful replies and shared their experiences!
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  • Profile picture of the author Keen creations
    Really appreciate this post. I have a telemarketer (from craiglist) calling my leads i scraped off yellowpages (they have no website) and now calling them for web design services. Most of the leads I try to get now are lawyers and I think I will raise my price from $1k to possibly $1.5k or $2k depending on the site etc.

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  • Profile picture of the author mayankgangwal
    Great post unless and until if they find that you are quoteing the according to there profit not according to what you quote to other clients and they may feel cheated. And will never work with you and will not refer you to others. So i would if you are priceing high give them more than what you usually give to your clients, put more then 100% as you are getting more then 100% from them.
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  • Profile picture of the author ksimedia
    OP thanks for sharing your thoughts on this matter! I would like to share my experience of what happened to me when I first began offline consulting last year.

    When I first started I was eager like many of us just to get the first few clients under my belt, I pretty much did not mind negotiating prices, and even accepting lower than what I wanted to get paid! Well, that was just a total nightmare!

    I got my first client by sending out emails, when I quoted my price to him…. There was silence on the other end of the line… (and of course I was really nervous) then I said to make you a website it’s $1497. He said ok no problem; I will send you a check for 50% of it in the mail. A few days later, I received a check for $748.50. Finished the project and he sent the other $748.50

    Cool that was really good! I was excited, and motivated to go out and get my next big client! (Or so I thought) So I would just prospect to about anyone that I met, who had a business. Then I met a business owner who had a Taekwondo dojo, and needed a website. I was a good “consultant” listened to him how much he charges for his classes, and said, to do this project it will cost $900 then $175 a month for maintenance. He said ok well let me think about it and let you know.

    Hmmmm a few days later he said well we cannot do it for $900, but we can do it for $600, and a monthly maintenance of $150. I said, ok well sounds fair enough, I’ll do!

    Long story short, this guy was a royal pain in the neck. He wanted everything for nickels and dimes. Needless to say, I built his site, and that was about it. He’s no longer my client. I did not provide the monthly SEO, or anything else, because he did not understand the value of what I was providing to him. I got more emails and calls from him, and one day I got s really nasty email from him, and that was it!

    Now I can say I am stressed free for this cheapskate!

    Just to prove the OP’s theory correct, another client was a dentist but together a marketing package for him, quoted him a price of $2300. I had the check in the mail in a few days. To top it off, I hardly heard from this client. Up to this day if I try to reach him he’s unavailable. Occasionally I might get a response via text, none the less he’s happy with the results he’s getting. The only thing I do is send him updates via email about his site.

    My lessoned learned is that if you are too cheap, people will treat you that way. You will have too much headaches, and probably go gray a whole lot quicker! Charge what you are worth, and you will see that you will be respected, and valued as a highly trusted advisor!
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    • Profile picture of the author viralmarketing
      Excellent thread! I'm starting my offline consulting business and this thread is right on time.
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  • Profile picture of the author IM nice guy
    One of the most important threads I've read here.... EVER!

    Thanks for getting me thinking about this!

    (this is coming from someone who's been running the "Free site promotion while we're a new business, to get rep" model - and seeing first hand how people don't value a website when it's free, even if the quality is really pretty good)

    Value is entirely perception, and you are creating that perception from the very first point of contact..



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  • Profile picture of the author mojo1
    You painted a vivid picture of how professional discernment and the ability to choose who I want to work with in the future. Thanks!
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  • Profile picture of the author muerod
    What a super thread. There's one thing that I would like to add. I have noticed that people who beat you down on the price in many cases are not really trying to negotiate. The fact is a large percentage of this type of person cannot be pleased all. What ends up happening is they beat you up on your price, then once the work is done they cannot be satisfied they don't want to pay your money and in many cases will threaten to sue you, and make your life a living hell. And in their twisted minds they believe they're being shrewd business people.

    When I was a contractor I would run into this situation all the time. And I learned right away not to allow the customer to beat me down on the price, and my life was much easier for it. Then I would learn from another contractor that I knew and got involved with the very same customer, in a lot of cases every single subcontractor on the job was fired and in many cases taken to court because the bottom line was this customer was never going to be happy regardless of any price.

    The way I like look at it everybody would rather drive a Mercedes Benz than a Volkswagen. The reason people drive Volkswagen s is because they don't want to pay for Mercedes. The fact is nine times out of 10 get what you pay for.
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