Over the last couple of months or so I've had three continuing contracts that came up for renewal.?ÿ I was expecting a little push back on them but decided to "go in" high and then accept lower amounts.?ÿ But in surveying this can be tricky.?ÿ It's foolhardy to think you can't be undercut or replaced.?ÿ There is always someone else hungrier and willing to take a 'little less' to procure the work.?ÿ I was willing to take that chance found out not too long ago all of my rate increases were approved without any consternation.?ÿ Wow.?ÿ It's kind of like writing home for $5 and getting $10.?ÿ
My suggestion to everyone is to "get them rates up there"?ÿwhere they belong.?ÿ 😉
Sweet. ?ÿThanks Unc!
In construction surveying during a boom I usually get the prices I ask for, during a recession it's hellish negotiation time with them. Negotiations aren't so bad if you have taken a used car salesman correspondence course beforehand. ?????ÿ
@flga-2
One of my clients has always let me know where the "competition" is at and let me adjust accordingly, probably because a twenty year old relationship.?ÿ I didn't have that luxury with the others.?ÿ I was risking getting shot out of the saddle.?ÿ?ÿ
I??ve had similar relationships with clients, especially the older clients (5 years or more). One time though, I lost a 5 year old client to a competitor whose prices were lower by about 30%. That one hurt, and that??s when I learned (the hard way, of course) about negotiations and explanations of why my prices are higher. For reputable clients it worked; for shoddy builders it didn??t. I was extremely fortunate in gaining reputable clients who accepted my proposals with little or no questions. But we still have, thanks to some, the perpetual race to the bottom happening throughout the industry with no light at the end of the tunnel. To me it always brings to mind Realtors (of which I am one) that are rewarded 10 times the amount that Surveyors are on the sale of a residence and have zero liability.
A group of Surveyors in Central Florida (me included) met to discuss how to approach and correct the monetary discrepancies in our profession. We didn??t discuss minimum prices or percentages or anything that could be interpreted as ??price fixing?. The Realtors thought differently and the Attorney General of the State of Florida ended up investigating all of us. Nothing ever became of it, but it was a pain in the ask for 17 months. ?????ÿ
realtors can be so shortsighted.
Increased fees translates to higher pay for employees, so they can buy a home from said realtor.
That one hurt, and that??s when I learned (the hard way, of course) about negotiations and explanations of why my prices are higher
What if you simply want more money so you can buy a 5th wheel or a jet ski or something??ÿ I gotta admit I've never run a business before but I can't imagine a customer would appreciate an explanation like that very much.?ÿ ????ÿ
The Realtors thought differently
Yeah, the folks who all insist on the same percentage of the sale.
Friend of mine had me do several surveys he needed done over a span of several years.?ÿ One day he calls for a new job and wants a hard number.?ÿ So, I said XXX.?ÿ He immediately came back with, "Well the last one you did was only xxx.?ÿ Why so much for this one?"?ÿ I explained the difference.?ÿ He said, "I'll get back to you."
Never did another survey for him and it's probably just as well.?ÿ He was brought up to be one of those people who must appear to be the richest guy on the block so he must get the cheapest everything he needs to buy in order to have the money left to make the appearance of wealth.?ÿ Fancy house and paper plates.
What if you simply want more money so you can buy a 5th wheel or a jet ski or something??ÿ I gotta admit I've never run a business before but I can't imagine a customer would appreciate an explanation like that very much.?ÿ ????ÿ
That's what we refer to as profit.?ÿ And profit is not a taboo subject in negotiating contracts or fees, it's a real factor that makes running your own show worthwhile.?ÿ Nobody should ever venture into a business ignoring the need for profit.?ÿ While operating expenses and equipment payments are considered overhead, profits are used for growth and expansion. Profits are a real part of the total amount for fees.
Of course it wouldn't necessarily be appropriate to request an increase in fees just to enhance your bottom line.?ÿ That's up to you to be as diplomatic as you can be and dwell on what the client is receiving for the fees.
As for the 5th. wheel and the jet ski...let me put it this way:?ÿ I drive around in a 2011 Chevy work truck.?ÿ Don't ever take the soft-tail or the Beemer to a business meeting.?ÿ 😉
That reminds me of someone, who could it be? ????????
Maybe some people are realizing what good work is worth.
When I was a kid, my uncle used to quote prices to some of the family business's better clients in palm trees for rush/complicated jobs.?ÿ They all knew he likes to spend time in the tropics.?ÿ If you are provided quality service, quality customers accustom to working with you profession expect that you are in business to make money.
Rich people hate to spend their own money, generous people live to share with friends and family.
.....To me it always brings to mind Realtors (of which I am one)
?ÿI hope you don't take my unsanctamonious screeds about realtors the wrong way. I feel there are always exceptions to stereotypes, few and far between, but exceptions.
?ÿ
A while back, someone posted about Dan Beardsley's book
?ÿA wealth of knowledge: The top thing Dan says in his book; If your clients aren't complaining, you're not charging enough.
Here's to 2021 being a better year for everyone!
CHEERS!
I've been reading through it (haven't completed it just yet) and I am definitely glad that it's been shared here many times. So as a new, solo business owner I'm finding my prices for certain activities to be well below what others charge but then again too I'm finding that certain activities I quote & charge for are also well above others' prices. I think part of this is to blame on me being solo (expenses & amount of time spent doing things are different) while I also think that it might be relevant to the market I'm in too (very different compared to other areas).
I do think Mr. Beardslee is right in not trying to worry so much about what others charge as your in business to be profitable - however it never hurts to know what others are billing for in my opinion in order to give you an idea why work may or may not be coming your way (rather be aware than be clueless). Ultimately, I am asking myself more after reading the book what am I doing to be fair to myself/my time (what do I value the work at exactly) & am I being fair to the clients while most certainly trying to make a little profit with the time & money I have invested in these various endeavors? I want to be picky about what work I put prices towards but as a newbie I don't want to run everybody off at first either.
If you are provided quality service, quality customers accustom to working with you profession expect that you are in business to make money.
The fifth and sixth word of the above statement puts the whole discussion in a nutshell. ?????ÿ