Bid help or suggestion

I can't recall where I read it, but years ago I read something about how people perceive the number 7 to be the least intimidating at the end of a price. ($19.97, $287, $2487) So, a lot of times I end with the $77 style ($277, $2477). In my opinion, it gives the buyer a sense of security that it's fairly priced and not just a trick because it's (A) not just a few pennies or a buck or two under the next hundred. (B) because it's not a 50. And (C) because it's not a commonly used price. So they feel like they were priced on a system that everyone gets the same treatment.


Sent from my iPhone using Tapatalk
 
I mostly am at $189 $289 $389 and it works for me. Maybe I will try the 7 thing. $2 won't kill me.


Sent from my iPad using Tapatalk HD
 
bighals said:
I can't recall where I read it, but years ago I read something about how people perceive the number 7 to be the least intimidating at the end of a price. ($19.97, $287, $2487) So, a lot of times I end with the $77 style ($277, $2477). In my opinion, it gives the buyer a sense of security that it's fairly priced and not just a trick because it's (A) not just a few pennies or a buck or two under the next hundred. (B) because it's not a 50. And (C) because it's not a commonly used price. So they feel like they were priced on a system that everyone gets the same treatment.


Sent from my iPhone using Tapatalk
Click to expand...

I remember reading this as well, works very well
 
I just have my standard pricing. X amount to go to the job and y amount times the footage to do the job.
 
DunRite said:
There have been studies done by retails stores on this that support not using rounded whole numbers (ex-$500)

Like Juan said i feel as a consumer that you took the time to really crunch the numbers when its like $385 as opposed to say $400
Click to expand...

That's funny. Today I actually quoted a job at $385.
 
I read a post about this here a few weeks ago and incorporated odd numbers in my estimate even cents and have been getting them right and left. Last one $347.17. Its also that time of year were people just want it done before the winter but I'm a beliver.
 
Standard pricing is hard for me. I seem to underestimate length and width by eyeballing. Also, every situation is so different. Commercial work needs some standards, but residential pricing is more tied to instincts. You have to feel people out to know A. Can this lead to many more jobs? B. Do I like working for this person? C. What price are they expecting? For if you bid to low, that will turn some people off. But low bids sometimes lead to instant referrals. Are they cheap or aristocratic?
 
Jonathan, what I've found out is standard pricing doesn't work for me..

Not sure how long you've been in business... but what I do is use standard pricing as an outline of where I'm going with the bid.

Ultimately, your overhead and expenses may be different than mines... and what I need to be profitable may or may not be "good enough" for you. You need to determine all of your costs and figure the market value and your competitors.... and at that point, you'll find out how to price it.

It also has to do with being a commodity vs providing value. Hope that helps.
 
jonjdooley said:
Standard pricing is hard for me. I seem to underestimate length and width by eyeballing. Also, every situation is so different. Commercial work needs some standards, but residential pricing is more tied to instincts. You have to feel people out to know A. Can this lead to many more jobs? B. Do I like working for this person? C. What price are they expecting? For if you bid to low, that will turn some people off. But low bids sometimes lead to instant referrals. Are they cheap or aristocratic?
Click to expand...

Rarely do I quote by eyeballing. I'm terrible at it. I can't tell if it's 30 ft or 100 ft. So I one of those measuring wheels that you walk behind. Walk the length, walk the width, multiply length×width×rate, and I'm done. The customer seeing me doing this knows that i am making an effort to give them an honest price, and not just making up the most i think I can get out of them.

And I usually quote to the penny.
 
You must log in or register to reply here.
Back
Top