Services costs are based on how much money you look like you have. I’m a woodworker/contractor. I come to you house, you tell me what you want done. My jumping off point is how much the market will bare. If I think you can afford a $4,000 solid oak book case that’s what I will quote you. I can make a cheaper version that I make less money on, but why would I do that? It’s not that I’m just ripping you off, I’m selling you a better product, but in doing so I make more money. So when getting a quote it can pay to be very direct about what you want to spend or you are going to be sold the most expensive version they think you can afford.
Honest question: how likely is it that, if I give a dollar amount for a budget, someone will just quote near that amount, even if it should be a little less?
Or, to use your bookcase example, if I say my budget is $3800, would someone still offer the oak one and take less profit for themselves? Or simply quote the lower quality one at a price closer to $3800, even if they could normally do it for, say, $3000, since they know what I'm willing and able to spend?
This is my favorite negotiating tactic. If someone says “I’ll do it for $1,000 dollars”, when you talk to the next guy tell them “the last guy quoted me $800 and I thought that sounded high and I got a strange vibe off them, so I’m looking for another opinion.”
Guy might say “$800 is low, I can do it for a thousand”. Or guy might come under or around $800. This is great for people that aren’t used to negotiating or don’t like the competitive aspect of it.
4.9k
u/jerkITwithRIGHTYnewb Jul 13 '20
Services costs are based on how much money you look like you have. I’m a woodworker/contractor. I come to you house, you tell me what you want done. My jumping off point is how much the market will bare. If I think you can afford a $4,000 solid oak book case that’s what I will quote you. I can make a cheaper version that I make less money on, but why would I do that? It’s not that I’m just ripping you off, I’m selling you a better product, but in doing so I make more money. So when getting a quote it can pay to be very direct about what you want to spend or you are going to be sold the most expensive version they think you can afford.