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Old 05-04-2017, 02:06 PM   #1
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Default bidding for multi millonaires

when youre doing a job for people you know have millions and your given a green light to set a price do you bump it up because you know they are rich or do you give your price same as anyone?
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Old 05-04-2017, 02:21 PM   #2
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Who wouldn't think it'd be tempting to gouge a person with deep pockets, and get away with it? Oh..that's right. People with integrity. I'm sure there's a business best practice and business ethics chapter that covers that somewhere.
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Old 05-04-2017, 02:42 PM   #3
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I don't play that game, my prices are the same for everyone.

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Old 05-04-2017, 02:59 PM   #4
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That's why i have several price points. But for a service like painting? I don't know if i would do it. I'd probably stay pretty consistent for everyone. Those types of people have a lot of connections and working for them could lead to some more primo work.
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Old 05-04-2017, 04:56 PM   #5
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I don't think there is anything intrinsically or morally wrong with having different pricing for customers from different socioeconomic classes. As a matter of fact, I think it's vital to do so, if you want to get work.

If you are doing nothing but high-end work, I would think it wise to maintain a relatively consistent pricing structure. If you aren't accustomed to bidding high- end jobs, you probably aren't bidding this one as highly as you should...thus, your question. I am just assuming this, and apologize if I am incorrect.

Lots of people on here have talked about the importance of "raising their rates." Well, isn't this a prime opportunity to do so? The cost of living (and of maintaining a business) doesn't every really go down, does it?

As long as you provide quality work, I say go for as much as you think you reasonably can. Perhaps keep your labor rate the same, and bump up the percentage of profit, or increase your labor rate.

What's the point of doing high-end work anyway? It pays better! Not to mention, the potential benefits in the way of more high-end clients via word of mouth, not having to bid as many lower end jobs, etc.
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Old 05-04-2017, 06:21 PM   #6
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Quote:
Originally Posted by SemiproJohn View Post
I don't think there is anything intrinsically or morally wrong with having different pricing for customers from different socioeconomic classes. As a matter of fact, I think it's vital to do so, if you want to get work.

If you are doing nothing but high-end work, I would think it wise to maintain a relatively consistent pricing structure. If you aren't accustomed to bidding high- end jobs, you probably aren't bidding this one as highly as you should...thus, your question. I am just assuming this, and apologize if I am incorrect.

Lots of people on here have talked about the importance of "raising their rates." Well, isn't this a prime opportunity to do so? The cost of living (and of maintaining a business) doesn't every really go down, does it?

As long as you provide quality work, I say go for as much as you think you reasonably can. Perhaps keep your labor rate the same, and bump up the percentage of profit, or increase your labor rate.

What's the point of doing high-end work anyway? It pays better! Not to mention, the potential benefits in the way of more high-end clients via word of mouth, not having to bid as many lower end jobs, etc.
1/3 of the people i work for are millionaires, sounds like im bragging but im not. im new to the business side and like to save money for people actually need the break. i guess my question was more about the morality side. you are right in the assumption i have been too low, the last one i aimed higher and the bid stuck no problem.

thats good advice though i think ill take it. thanks
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Old 05-04-2017, 06:21 PM   #7
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What he ^^ said, meaning semiprojohn
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Old 05-04-2017, 09:01 PM   #8
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The product should reflect the premium. The OP isn't necessarily improving his product, but rather, inflating costs as a means of opportunity. That seems more like taking advantage of a particular socio economic class based solely on gain rather than offering a unique and exquisite product experience. But if you can sleep with a good conscience, well., who cares
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Old 05-04-2017, 09:37 PM   #9
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if i get a great price to repaint a nice place i think it would come natural to put extra prep/effort but the opportunity to make real money is temping. i mean they didnt slave for those millions, im not talking about your average wealthy guy who makes 90k a year
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Old 05-04-2017, 10:05 PM   #10
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Quote:
Originally Posted by CApainter View Post
The product should reflect the premium. The OP isn't necessarily improving his product, but rather, inflating costs as a means of opportunity. That seems more like taking advantage of a particular socio economic class based solely on gain rather than offering a unique and exquisite product experience. But if you can sleep with a good conscience, well., who cares
The OP already has a decent percentage of his customer/client list who are wealthy, which implies that he does high quality work already and does not cut a bunch of corners. Moreover, charging and landing more money for a job allows one, if so desired, to spend some more time to tweak things. If he wants to find out what the market will bear, how is that negatively taking advantage of said market or being unethical?

I can only speak from my experience. I've only had five clients (they all became repeat customers) who have fallen in this economic range.

The first one actually sat me down after I presented him with the bill for the completion of the exterior repaint of his home, and told me that I highly undervalued myself and undercharged. This was very early on with my business. He actually removed the previous painter's bill for the same scope of work from an antique desk and showed me what that painter had charged him. It was significantly higher (23%). I will be forever grateful to that man for opening my eyes.

I pushed up my rate for the other clients. Only on one occasion was my price questioned, and after my explanation, they understood and did not complain. I received more work from them in the future.

I think there is a real danger for many of us to undervalue our services. As most of my customers are not in this range, I am used to having to bid "tightly," if you know what I'm saying. There are too many of us, so many drive prices down by underbidding or agreeing to do work which should cost more.

I'm getting long-winded, as usual. I truly wish I could express myself with fewer words.

In closing, this thread reminds me of Pressure Pros' '"Craftmanship is not what makes a business successful." If you produce quality that makes the customer---not you---happy, and charge what the market will bear, you are on the right track. That was my take from his post, and if I interpreted it correctly, I agree with it.
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Old 05-05-2017, 01:09 AM   #11
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Quote:
Originally Posted by SemiproJohn View Post
I don't think there is anything intrinsically or morally wrong with having different pricing for customers from different socioeconomic classes. As a matter of fact, I think it's vital to do so, if you want to get work.

If you are doing nothing but high-end work, I would think it wise to maintain a relatively consistent pricing structure. If you aren't accustomed to bidding high- end jobs, you probably aren't bidding this one as highly as you should...thus, your question. I am just assuming this, and apologize if I am incorrect.

Lots of people on here have talked about the importance of "raising their rates." Well, isn't this a prime opportunity to do so? The cost of living (and of maintaining a business) doesn't every really go down, does it?

As long as you provide quality work, I say go for as much as you think you reasonably can. Perhaps keep your labor rate the same, and bump up the percentage of profit, or increase your labor rate.

What's the point of doing high-end work anyway? It pays better! Not to mention, the potential benefits in the way of more high-end clients via word of mouth, not having to bid as many lower end jobs, etc.
I agree wholehartedly, you must adjust your pricing when working for the uber rich. These customers expect a level of quality and detail that others don't!
I've worked on quite a few jobs over the years for contractors who were doing work for clients that were worth hundred of millions, a few worth more than a billion.
You must follow specific guidelines and all work must be impeccable. For example, if you have any questions about a color or process in an area, many times we had to ask the lady of the house's personal secretary, and she would relay the info back to who was running the job!
A lot of these jobs have original paintings or sculptures that are priceless, some have oriental rugs that cost more then your wages for a year.

On these types of jobs we would enter into the kitchen, mud room, take off our work shoes, carry drops into the room we were doing, then spread more runners outside the area and bring in our ladders etc.
Finally when we had everything in place we would put our shoes back on and start working.

If you don't plan on these extra precautions and reflect it your price, you will be sorely disappointed!
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Old 05-05-2017, 09:36 AM   #12
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What we're talking about here is simply adding more labor time for the extra work that will likely be necessary to achieve a high end product. That is completely different than raising prices willy nilly when the opportunity presents itself. That's also completely different than undervaluing yourself from the get go.
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Old 05-05-2017, 09:53 AM   #13
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Shouldn't we always be bidding to land the highest dollar amount possible while still getting the closing rate we are aiming for? Bidding 101.
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Old 05-05-2017, 09:56 AM   #14
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Shouldn't we always be bidding to land the highest dollar amount possible while still getting the closing rate we are aiming for? Bidding 101.
Why have rates if bidding jobs is subjective? Maybe that's the argument for not itemizing costs.
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Old 05-05-2017, 10:08 AM   #15
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Why have rates if bidding jobs is subjective? Maybe that's the argument for not itemizing costs.
I think most of us utilize subjectiveness when bidding whether we will admit it or not. Who hasn't looked at red flags on a potential job and decided to bid higher to make it worthwhile IF we should get it? Heck, the PITA factor alone is enough for me to bid a job higher than I might otherwise. Rates might be a good base but if you aren't adjusting for the conditions you are mistreating yourself. But this isn't the same as raising rates simply based on a perception of what a customer can afford. I have met too many tightwad lawyers and doctors to make that mistake.
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Old 05-05-2017, 10:20 AM   #16
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My price is my price, but I can sell rich people on more services and higher quality products so their bill and my profits go up.
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Old 05-05-2017, 10:31 AM   #17
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I think most of us utilize subjectiveness when bidding whether we will admit it or not. Who hasn't looked at red flags on a potential job and decided to bid higher to make it worthwhile IF we should get it? Heck, the PITA factor alone is enough for me to bid a job higher than I might otherwise. Rates might be a good base but if you aren't adjusting for the conditions you are mistreating yourself. But this isn't the same as raising rates simply based on a perception of what a customer can afford. I have met too many tightwad lawyers and doctors to make that mistake.
But conditions that may create more effort are reflected in the labor time right? And probably more often then not, painting contractors are profiting from jobs that come in under budget, in terms of labor, and not because they exploited the bank accounts of the wealthy by tailoring labor prices.

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Old 05-05-2017, 10:36 AM   #18
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No wonder many painting contractors don't want to provide sq ft prices.
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Old 05-05-2017, 10:38 AM   #19
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Besides the normal COLA increases, generally speaking, contractors adjust labor wages only when the job requires prevailing wages. And that typically occurs with public entities, not private.

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Old 05-05-2017, 11:01 AM   #20
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I'd try to sell them Accolade or Ultra instead of Prohide Gold or Calpro, so I really don't think there is much difference if you are providing a superior service in exchange for the price increase. But if you do the same kind of work you would do for an apartment repaint then you are ripping them off, and they may be smart enough to know it. Do good work in exchange for the money they pay and everything will be fine. I wouldn't just mark up my contractor paints just to make a few extra bucks off of them like my competitors do. Sell them on the VALUE your service provides over the PRICE you can give them.
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