What's your batting average? I figure about 30% of my estimates are 'too high' for my potential clients, and I used to think this was a good. I thought it meant I was priced competitively, yet not leaving too much on the table.
As I pondered the facts earlier today I came to the conclusion there's another component: Why is it too high? If all the potential clients who turn me down don't hire brand 'x' either then my 30% number needs to go up, as well as my estimates.
Off hand I am thinking 50% would be about right.
Steve
sjc1989, post: 374977, member: 6718 wrote: What's your batting average? I figure about 30% of my estimates are 'too high' for my potential clients, and I used to think this was a good. I thought it meant I was priced competitively, yet not leaving too much on the table.
As I pondered the facts earlier today I came to the conclusion there's another component: Why is it too high? If all the potential clients who turn me down don't hire brand 'x' either then my 30% number needs to go up, as well as my estimates.
Off hand I am thinking 50% would be about right.
Steve
Seeing as how I have absolutely 'zero' past 30 days accounts receivable....I would say none of my estimates (or invoices) were actually "too high" for my clients.
Now did any of them suffer "sticker shock" when they got the bill? Maybe. But they pay, and they are (this month anyway) 100% return clients. I guess I should consider myself fortunate.
sjc1989, post: 374977, member: 6718 wrote: As I pondered the facts earlier today I came to the conclusion there's another component: Why is it too high? If all the potential clients who turn me down don't hire brand 'x' either then my 30% number needs to go up, as well as my estimates.
I am probably having a "Senior Moment" but don't understand the above captioned quote. Specifically what are you trying to accomplish?
B-)
I want to find the best best price point with the least effort.
Steve
FL/GA PLS., post: 374984, member: 379 wrote: I am probably having a "Senior Moment" but don't understand the above captioned quote. Specifically what are you trying to accomplish?
B-)
I think he's saying that if said client turns him down and does NOT contract with a competitor than he feels he didn't lose the job based on price as his competitor had a similarly unpleasant price according to the client.
sjc1989, post: 374989, member: 6718 wrote: I want to find the best best price point with the least effort.
Steve
I'm going to use humor here to make a point, but I remain serious and sincere in my efforts.
Look at it this way:
If you could charge a million bucks for a survey and get paid, you probably would. If the client had it his way, it would be right now, for free.
Somewhere in the middle there we find common ground and professional services can be rendered.
Trying to determine how much work you either obtain or run off merely by pricing is probably misleading; there are other factors involved. The only way you can learn what others' prices are is by asking....and I would be wary of the replies. I do, from time to time, quote people prices either over the phone or a formal proposal. Some I get, some I don't. Lowering your initial price in a negotiation is a sure-fire indication to the other party you were too high to begin with.
Determine what your services actually cost and decide what amount of profit (it really is a necessity) you want as an ROI...and stick to it.
my sincere $0.02 B-)
~Dan Beardsley said: If your clients aren't complaining; you're not charging enough...
It's hard to use a percentage because all callers aren't equal. Some are just curious but don't really need a survey that bad, some have no idea how much a survey costs and are completely blown out of the water, some are referrals, some repeat clients. For me probably at least 50% of inquiries don't turn into jobs. I have a regular field crew to keep busy so I adjust the prices somewhat up and down to keep things even...when hungry, I might bring prices down to get a job and when there is a lot of pressure bring prices up. Over the long run, it averages out
paden cash, post: 374982, member: 20 wrote: they are (this month anyway) 100% return clients
With only one exception that comes to mind, it's been that way all year for me.
sjc1989, post: 374977, member: 6718 wrote: What's your batting average? I figure about 30% of my estimates are 'too high' for my potential clients, and I used to think this was a good. I thought it meant I was priced competitively, yet not leaving too much on the table.
As I pondered the facts earlier today I came to the conclusion there's another component: Why is it too high? If all the potential clients who turn me down don't hire brand 'x' either then my 30% number needs to go up, as well as my estimates.
Off hand I am thinking 50% would be about right.
Steve
I don't think there is anything wrong with using that as a yardstick to measure your rates.. of course it's just one factor that a potential client is considering. I generally figure that if I get a majority of projects, it's time to raise rates! I do everything lump sum, paid on delivery or credit card!
Believe it or not, the cost isn't normally the problem. For me it's how soon can I get around to getting the job done. Too many want to believe that they will suddenly move to the top of my to-do list. Sorry, Charlie. Not taking that bait. If I say three weeks to even start on it, they either skedaddle or say something like, "Well, that's a week or two sooner than the first guy I called so put me on your list, please."
It's one thing to be hungry. But its worse to be tired and hungry. Don't give it away.
Right now I'm so busy it's basically name whatever price you want. I want 80% of jobs not to sign up. I'm 5 weeks out at the moment so my prices have more than doubled and I'm still getting some.
It's a good problem to have but when the clients are calling and bothering you it's an actual problem.
An acceptable hit rate is dependent on your clientele and the size of the projects. If you are proposing on $100K plus projects, a 10% hit rate may not be a problem. The development of good, long term and repeat clients is more important than a hit list.
Rich., post: 375451, member: 10450 wrote: Right now I'm so busy it's basically name whatever price you want. I want 80% of jobs not to sign up. I'm 5 weeks out at the moment so my prices have more than doubled and I'm still getting some.
It's a good problem to have but when the clients are calling and bothering you it's an actual problem.
Good problem to have! Are you in the process of training up your staff and hiring new?
TXSurveyor, post: 375574, member: 6719 wrote: Good problem to have! Are you in the process of training up your staff and hiring new?
Training one guy right now. Hope to be hiring soon.
Problem is I think he wants more pay than he's worth at the moment.
They are ALL TOO HIGH (and all too low also), it depends on your point of view...
:-S
Loyal
