Has th price of price diesel effective your jobs ???? I gave a customer a price for a job about 3 months ago, he wasn't ready!! Now he is but, diesel was $2.10 now it's $2.50 I told him that price was not written in stone !!! I told him there is a price increase & now he's mad ! To bad !!!! I'm would like to know if you guys who book jobs 3 months to 6 months in advance are you still holding to that price???? If so are you making money?? if you are working just to pay the bills you wont be around long !!!!!!
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price increase!!!!
- Thread starter kamerad47
- Start date
PSDF350
Senior Member
I'd say you gave a price and made arrangements to do job you live with it. I know if i had a deal made with someone then they want to change it i would be a bit upset. But of course if you only gave a estimate then yes price can change. But not if price was set and time set to do job. Like i know in my business i buy standing timber at such and such a price but when i can get in to do job that timber has taken a drop in market value i cant say well sorry but it is not worth that anymore or hey fuel prices went up that price wasn't set in stone.
PSDF350
Senior Member
Here's another way to look at it. Is it worth loosing this customer over: Lets see .40 x 100 gallons = $40 or say 1000 gallons $400
Dwan Hall
Senior Member
All my est. are good for 30 days, as are bids. If the job is large enough you can absorb the fuel increase then you must charge to make a profit.
PSDF350
Senior Member
Dwan i think thats great if it is known. But to except a job for a later date for such and such a price then say oh no cant do it for that is not.Dwan Hall said:
With things as unstable as they are in the industry today, fuel prices, steel prices, tire costs and such, you pretty much have to put a time limit on your quotes. Mine are 30 days like Dwan's, with rising prices in so many areas of the business, profit margins are shrinking and it's getting tougher to absorb increases.
It wasn't just fuel prices I had to hayl dirt off the job with my 2 trucks & hire out the guys (trucks) wont work for that price anymore !!! Asphalt went up $ 10,00 a ton concrete went $8.00 a yard it's not $40.00 in fuel it's alot more them that!!!
PSDF350
Senior Member
Sorry but that was all you said. Still the thing is unless you have a cluase like Steve and Dwan i think you will need to eat it or risk loosing job. Also tarnishing your name. Sorry i'm not more help.
Dwan Hall
Senior Member
You may want to offer a new estimate for the price increase. If you have room in your profit then you may offer to split the difference in price increase. If there is not enough room in your profit then rather then loose money on the job just tell the owner you are no longer able to do the job as quoted over 3 months ago.
A few things to think about in the future is a time limit on all estimates, additional charges due to unforeseen costs,
All overhead charges adjustable to the current pricing,
and enough profit to cover any unforeseen increase in price.
Remember ESTIMATES are just that estimates, and variable. But a BID or QUOTE for work is a firm price and needs to be adhered to unless other agreements were made.
You are not in business to loose money and not expected to.
Your word is important but at what cost?
If you were going to loose $100 on this job you would be better off to hand the customer a $100 bill and get out of the picture.
Think about it for a while, only you have all the information needed to make the choice. You may want to conceder your loss as an education.
Dwan
A few things to think about in the future is a time limit on all estimates, additional charges due to unforeseen costs,
All overhead charges adjustable to the current pricing,
and enough profit to cover any unforeseen increase in price.
Remember ESTIMATES are just that estimates, and variable. But a BID or QUOTE for work is a firm price and needs to be adhered to unless other agreements were made.
You are not in business to loose money and not expected to.
Your word is important but at what cost?
If you were going to loose $100 on this job you would be better off to hand the customer a $100 bill and get out of the picture.
Think about it for a while, only you have all the information needed to make the choice. You may want to conceder your loss as an education.
Dwan
There are too many guys that are willing to go broke to work!!!!! I don't no how many guys run big trucks to haul dirt or haul there equipment around but, everytime I fill up my trucks it hurts!!!!!!!! There are guys out there that are working on last year prices that, you know they can't be making money!!!
PSDF350
Senior Member
I'm sure not advocating working for nothing. But the truth is if you gave a price (not estimate) then you need to stand behind that or risk loosing the reputation you have worked hard (or working hard) to build. Sorry but the truth is if you quoted me a price and set the time. Then when time to do work, you come back with sorry but cant do it for that price. I would say fine take a hike. Even though i am going to spend the same or even more with someone else how gave me a price then lives up to his word.
I was more of an estimate nothing was signed!!! BUT Nobody cares about your word when your out of business & bankrupt!!!! remember that!! Ask that guy if he remembers you did that job for him? but this time he went for the cheaper bid!!!!