I underbid on a small tile job last night. It was late, I was tired, had one more person to visit. So I pulled a number out of my A and he graciousley accepted. If I were not so busy, I would bite the bullet and learn from it. But I have more than enough work, alot of it from repeat clients who are paying more. I would do it for a fair price, but not what I bid.
How should I approach him?
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Replies
Well, A bid is just that...
I guess I would call (in person would be better) and graciousley explain that you can not do the job. If he asked for details, be truthful and tell him you pulled an unworkable number outta your A and tell him it can't be done for the # you gave him.
Chances are he will ask for an acurate #.....be ready, he may buy it.
If he's a dick about it, ignore him from there on out....... Yeah, he could do this and that, but in the end, you havn't harmed him in any way.
Just be firm but polite
I agree ... be honest, and be prepared to give a real number, and be prepared for him to accept, so have a realistic start date in mind.
I'm sorry, I thought you wanted it done the right way.
I would tell him you made a error , give him the correct price then offer a incentive .
since I screwd up "I'll knock 10% off "," since I screwed up I'll upgrade to better materials" since I screwe up how about we (fill in the blank )
you get the idea give him a little something and chances are youl'l get the job at the correct price
I was surprised at the suggestions to re-bid at the larger number. I'd think that to the client, that looks like bait and switch: let's see...bid low, get the job, claim mistake and rebid higher after eliminating competition. Not saying he shouldn't have another number ready, but how does he make it not look like a clever scheme?
If he gave the price last night, it is hard to see that he has eliminated any of the competition. He can eliminate the possibility of seeming to be scamming the client by simply withdrawing from the job altogether.
It is possible that the client wants him and him alone, is willing to wait for a hole in the schedule and would be willing to pay a higher price. This is what a reputation is for.
If you are honest with the customer and leave the choice up to him, that is the best you can do.
Thanks for the input; I guess I already knew what I had to do, but just wanted some reinforcement. Still sometimes get a little uncomfortable talking money w/ customers, especially asking for more. I better get used to it if I want to stay in business. I did tell the guy that estimating was not my strong point, and I usually sleep on them. He had someone else lined up to do the job, to the point of buying the tile, but that guy disappeared. So, he would only have lost 2 days of searching for a contractor.
It also occured to me that If I had been the one to receive a bid that low, I would think something was wrong with the guy, or he was pulling a fast one, as someone mentioned. I even mention in my ads that "I am the not the cheapest person, and don't bother if that is what you are looking for"
A bid is not a contract and withdrawing an erronious bid before a deal is sealed is not uncommon, even in the big corporate world.
Just be glad you caught your error in time....
I agree. You're on solid ground withdrawing a bid that was given verbally at the first meeting. I would not offer a new number during the phone call in which you give the owner this news. If he presses for one, take some time to prepare it and then hand-deliver a written proposal. Of course profuse apologies are in order... but you don't need to give the guy the shirt off your kid's back.
A bid is not a contract and withdrawing an erronious bid before a deal is sealed is not uncommon, even in the big corporate world.
a bid is an offer. but here, the HO accepted the bid. that is a contract. a unilateral mistake does not change responsibility for fulfilling a contract. Renegging after a bid has been accepted but before work has commenced is an anticipatory repudiation of the contract. So much for the legality.
in the real world, tell the truth and bite the bullet if the HO's pissed. Chances are, a stand up HO will have realized that you underbid and will cut you some slack.
SHGFor every complex problem, there is a solution that is clear, simple, and wrong.
-H.L. Mencken
You are absolutely correct. Offer (Bid) and acceptance equals a contract and could be litigated. However, due to the small size and the verbal nature (as I understand it) it would not come to this with a good faith attempt to reconcile and since no quantifiable damage has yet occurred since you did not wait until time for the project to start and cause delays. Anyway, I would think few homeowners would want a contractor that may do the work but could not guarantee there complete attention and committment to the success of the project.
"I'd think that to the client, that looks like bait and switch"
That's twice in one week we agree with each other.
(-:
Wisdon is the reward you get for a lifetime of listening when you would have preferred to talk
I shall leave BT and not return till Sunday...I don't want this magic feeling to end.
This happened to me last year. I made a simple mistake on the bid and when I showed up for the job, I realized that I had only charged for the cost of materials. I had to tell him up front right then and there because there was no way I could swallow a weeks labor. He was very gracious and put the job off till the next year but I haven't gotten a phone call. Honesty is the best policy here, even if it makes you look really bad. Live and learn.
does he have it in writing ?
If it is as you make it sound, that you stopped by and said, hey this much and he said good go for it, I think you should be able to call him up and say that you were tired and you screwed up. that you had time to really crunch the numbers and ..... And had time to think about it. I hardly ever ever just give a number off the top of my head, even if they say , just give me a ball park. ball park high and they dont want you back to do the real bid, go low many will try to hold you to it.
If it is still early enough then he has time to get other bids and you can back out
if he has it in writing, you screwed up
experience is expensive tuition in the school of hard knocks
Change the bid price, its better to do that than work for free (or worse). Do it by reaching out to him (call/visit)--before he accepts the bid (and blows off the other bidders).
If you are honest, the client can't help but know he is dealing with a real class act and will give you the work.
If you don't get the job, you're dealing with a real jackass, and your better off without that job.
Done that/feel for you. Here's the unfair thing I think from our side. The customer wants a price, but EXACTLY what he wants that price FOR is NOT COMPLETELY AND EXACTLY NAILED DOWN.
Thus, we are not bidding on an objective thing, but a dreamy vapor, not knowing when they are going to come up with all the "special ordered detailed pieces" and changes, and do certain little things that facilitate us doing the work in a timely fashion (get stuff moved out, leave a parking place, give us a key, deal with the dog, etc).
I think their question about a "nailed down price" is an unfair one, since they don't have a "nailed down design". Thus, as time goes on, I predict it will be harder and harder for anyone to get a nailed down price out of any of us.
You're a little off-topic, Fonzie, with your rant about customers not "nailing things down."
Our thread initiator, HandymanJohn, never mentioned in either of his two posts that the scope and specs weren't clear and final. In fact, almost just the opposite. He said that another contractor was almost on board to the point of going and buying the materials.
Gene,
Ok, I'll politely retract my rant - it probably applies to my lack of observation with bids and threads. What's your answer to the question?
As the thread originator: I called the guy and have yet to hear back. The bid screw up was my fault. After I got home I thought of at least 5 more questions/measurements I should have done ( my wife takes most of that credit) Fonzie, I understand where you are coming from. I have spent way too much time doing " We were thinking of" or " our neighbors have this... " and hafve it go nowhere. I'd rather spend the time with my family, thank you.
As a friend of mine, from whom I learned a wealth of knowledge, once remarked, "In order to be, a good deal has to be good for both parties." I think that in the business world, it's referred to as "Win-Win Negotiation." Zbalk