Hey guys. I recently opened up my own business 2 months ago and I'm still trying to get business savvy.
So I got this pretty big job ( at least for me) it's 400 liner ft of fence, basic 6 ft good neighbor style with gates. I normally charge $45 a linear foot + gates, but since it's 400 ft do I give them a better price? And if so, how much? I have to remove the old fences so I'm thinking I do $40 a linear foot and remove the old fences for free.
It's for condo unit and eventually all the fences have to be replaced but they want to do 1 section at a time.
Do you guys think I should give a discount for this or not?
Thanks guys
Hey Angelo,
If you charge at $40 Lnft rather than $45 you're giving them an 11% discount off the cost of the job to start. If I did anything, so I didn't cut my nose off to spite my face, I would discount the removal fees at 11% as well.
My suggestion would be to provide a discount by percentage.
Example:
10% off 400lnft or greater. Discount applicable to removal of existing fencing.
Something like that, where they are getting a deal (almost saving the HST), but where you aren't losing any money or more importantly, profits.
No matter how good your pricing is, your quality of work will be what gets you/keeps you on a job. People pay for quality. You can't raise your prices later because you went low to start to get the job. Get what you're worth right from the beginning. A percentage discount can be ended as "promotional", and can also be renegotiated later if it becomes an issue where it may be ended on project A , but say project B over here needs to be done so they'll pay you more for A if you do Not at a "discount".
Hope that helps you out. Good luck!
- Tim
Sorry that should read:
"if you do Project B at a "discount"."
I say "discount" because you make it look like they're getting a deal. Never sell yourself short to make a deal. They won't hesitate to pay you less if they can get away with it. This is business.
Hi Angelo,
I normally discount by percentage when my lines are over 250 lineal feet, and I always charge the same for take down.
Always get what you are worth and try not to low ball yourself just to get a job, it will end up coming to bite you in the butt down the road, take down is work too, make sure you are getting paid brother.
Thank you guys for your replies. I've been lurking this website for a while and I've learned a lot reading what's on here. I really have to improve my business sense, I lost money on my first few jobs because I underquoted.
Thanks for advice
Since you have to remove the old fences too, I think you should charge $40 for a linear foot. You can tell them that you are removing the old fences for free instead of giving separate discounts.
Otherwise, you can charge $45 for a linear foot and remove the fences for free. You can also give a 5% discount to the customer for this deal.
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