A methodology that pays dividends in the long run
A friend of mine does small- to medium-sized construction jobs—he installs driveway fences/gates, room dividers, drywalls and tapes a kitchen ceiling, etc. Most of his business comes by word of mouth. People see his work and ask who did the job. They get his number, give him a call, and he provides an estimate. Most of his work costs less than $2,500 per job.
He came by for coffee last week. He said he has noticed a pattern since the pandemic. People barter pricing more than before. He gives an estimate, and a potential client says he will get back, and when he does, my friend is told that someone else has offered a better price. If my friend could come down a few hundred dollars, the client would be happy to hire him because he seems very qualified.
You can imagine the outcome. My friend has started to inflate the estimate, so when the customer begins to debate, my friend lowers his price to what he would have charged in the first place. The customer is then willing to pay the “adjusted” price.
Such a game.
