Hi heads, I've recently encountered a pricing situation. A customer comes in for lettering on 3 trucks and 3 trailers. I quoted the customer $3600 on all three and he asks if $3200 will do it. I sealed the deal gave him the break since he is a new business. Well i've lettered the first 2 trailers and trucks, and I also did the 3rd truck. The customer was very pleased with my work. Here's where the problems comes in. The customer ran into some problems and didnt end up getting the 3rd trailer. They have paid me $2100 so far, but are not sure if they are getting the 3rd trailer. Should I just take the money and shut up? Or should I pro rate the work and collect what I should have made in pricing 3 trucks and 2 trailers?
-Ryan
Posted by Bob Burns (Member # 268) on :
aT this POINT, i'D TAKE THE MONEY.......!
What you shoulda done was to initially price each unit separately, then give them a deal on the LAST unit. ........................hindsite.....................!
Posted by Mike Pipes (Member # 1573) on :
Ryan,
Take the money and run on this one. Consider it a lesson that when someone has multiple copies like this, get full price on all of them and apply the discount to the last one to ensure you get paid properly.
Now it's kinda after the fact, so unless you told him in advance that you would pro rate the price if he didnt come through with the agreed-upon quantity, you're stuck with it.
Posted by Peter Schuttinga (Member # 2821) on :
Collect the full amount, and write on the invoice that the 3rd trailer will be lettered if work is received within an acceptable time frame (6 months).
Posted by Si Allen (Member # 420) on :
At this point, I would collect for lettering the 3rd truck! Looks like he's getting that truck letterd for free!
If and when he gets another trailer, then, you can negotiate a price.
Posted by Danny Busselle (Member # 3746) on :
You already no the answer. Do it Different Next Time.
Just For Today
Keep The Rubber Side Down
Posted by Dwayne Hunter (Member # 133) on :
I'd be figuring up a final invoice. $2100 sounds good for the first two, but like someone else said, it looks like the third truck is FREE?!?!?!
Regardless of theire situation, they owe you for one more truck.
COLLECT IT!!!
Posted by Joe Rees (Member # 211) on :
<Gets calculator> Let's see...$3200 for a total of 6 vehicles. Three trucks and three trailers. If all vehicles were equally priced, thats $533.33 per unit. Five units are done totaling $2666.65. $2100 seems $565.65 short.
Posted by Bruce Deveau (Member # 1600) on :
I agree with Joe. Figure out the unit price based on the estimate and charge for all the work completed. The question is whether to base the unit price on the original quote or the discounted quote, since they did not fulfill their end of the bargain.
I would promote good will and base it on the discounted quote...and let them know that they got a deal. there isn't evidence that they tried to pull a fast one. Things change some time. It's not as if you quoted for six and they brought you two...five ain't bad. Just let them know that the volume discount will not apply once they bring you the last trailer.
Bruce
Posted by Ray Rheaume (Member # 3794) on :
I gotta go with a little different thinking on this one here...
Joe I can appreciate the math, but I doubt that would be right. (size is important...lol)
If the quote was something like $250/truck and $350/trailer, I'd approach it from that angle first, then let them know the last trailer would be priced accordingly as a seperate job. Nice thing is, they already like the work and know what they will be getting...thier money's worth. Don't forget, too, the initial qoute was $400 higher, too. They will still be saving $ in the long run.
My 2 cents. Rapid
Posted by Ryan Ursta (Member # 1738) on :
Thanks for all the replies everyone. Next time I will use the idea of giving the discount on the 3rd one. On a good note, it looks like I will be getting the trailer after all. I guess they must have gotten into a bind and the owner hurt his back. I will just have to wait a little while for him to recover. Thanks again! -Ryan
P.S. I will post pictures of the fleet when I get them all finished. They look pretty sharp.
[ September 10, 2003, 11:15 AM: Message edited by: Ryan Ursta ]
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