I wrote a Blog post for another company recently stating that I didn’t think it very smart to negotiate the price of your work. A reader agreed with me and said:
“As a business owner in the construction industry, I constantly have customers calling me back to negotiate a price. It is irritating when we charge the same price to everyone, we don’t add miscellaneous fees. That means we really don’t have room to negotiate. Given our shaky economy and the extreme competition between contractors, this is a huge problem. Thanks for addressing an issue that people really don’t hear enough about. In my opinion, to keep things fair, everyone should stick with their standard prices, and customers should remember you usually get what you pay for. If you want short cuts and discounts, the company may take the same discounts when doing your work.”
His comment is right on. The media has gone overboard telling the buying public that they should “negotiate the price of their work” with any contractor they deal with. I read recently that because work is slow, all contractors should be willing to cut their prices to get work for their crews. I don’t know where that guy got that idea, maybe from a box of Cracker Jacks?
When your customer wants to negotiate the price, it often means you have not done a good job during your sales presentation of getting the four basic questions answered and getting the commitments you need before quoting a price. They need to know that when you say you’ll provide a “firm, fixed price quotation,” you will provide a “FIRM, FIXED price quotation”. That’s not negotiable.