Business question

Fixed fee is exactly that, fixed. Its the risk of the seller / service provider to ensure they do the work under the quoted fee. Time charge with or without materials is different, your profits are within the rate and % over on materials, risk is with the buyer. Fixed fee was quoted, raise the invoice for the fee agreed.
 
[TW]Fox;30057443 said:
Your costs are irrelevant and are nobodies business but yours.

You've provided a quotation which the client was happy to accept.
Click to expand...

100% this. Same as bidding for any job. You provide an estimate as does everyone else, they decide what to do. They've decided 20k is fair, done. If they quibbled the price, sure, but they haven't. Nothing immoral about it at all, it's business!
 
mrbell1984 said:
I still stand by what I said. It feels wrong knowing that you pocketing that amount when it didn't cost that amount. Even if the client is happy to pay it I think it's wrong.
Click to expand...

So is it wrong to pocket any profit what so ever as it didn't cost you that?
 
mrbell1984 said:
I still stand by what I said. It feels wrong knowing that you pocketing that amount when it didn't cost that amount. Even if the client is happy to pay it I think it's wrong.
Click to expand...

I took my car in for some work recently, the parts cost just under £60 and I paid £95. Are you telling me I just got robbed? :eek:
 
MooMoo444 said:
Are they a regular/tier 1 client? If so, pocket 1k and return 1k. You look great for being 'honest' and returning some of their fee, but you also get a nice bonus out of it :p :p
Click to expand...

That is what I would do, you lose 1k but you might get work that will give you more than 1 k
 
You are in business, not an employee.

You quoted, they accepted.

You charged 20k, you should get paid 20k.

/end
 
Hodders said:
You are in business, not an employee.

You quoted, they accepted.

You charged 20k, you should get paid 20k.

/end
Click to expand...
This.

In reality if you had quoted £20,000 and then it had cost you £22,000 the original quote would still stand unless you had some form of get out clause in a contract from my experience.
 
If you expect future business, and think it would help, then a little sweetener in the form of a small discount might be worthwhile.

Generally, though, I'd keep it - you quoted, they accepted. As long as you delivered as promised, then everyone's happy. Just you're a little bit more happy :)
 
Everyone is happy so leave it as it is. Wouldn't want them or anyone else thinking you can't provide accurate costs. You could always offer a small discount if the business comes back for more.
 
Say a lot of the costs are around the processes that you use as a business. You then look at those processes and make them more efficient, therefore reducing your costs. Would you then go back and give rebates for all your customers? No, that would be silly. The whole point of the exercise would be to increase the profit margin.

I don't see how this is any different. Like Fox said, your costs are only your concern, not your customers'.
 
100% return it. Future business and positive word of mouth far outweighs the short term gain of the small amount of 2k.
 
Keep it. It's profit. Don't give it back, that's just madness. You entered into a Contract and delivered. The Client pays for services rendered. Why do they even need to know you over-quoted?

It's a fixed price project, the Client accepts the quoted price knowing that his liability is limited to the Contract price. Any over-spend on your part is borne by you. It's basic business.

If your over-estimate was on materials, then all this tells me is that you should up your hourly rates!

If your over-estimate was on time, then you were more efficient in delivering and the 2k is clean profit.
 
Last edited:
Rifte said:
100% return it. Future business and positive word of mouth far outweighs the short term gain of the small amount of 2k.
Click to expand...

Who says there won't be positive word of mouth if he keeps it?

100% keep it. Your costs are of no concern to your customer.
 
Basher said:
Who says there won't be positive word of mouth if he keeps it?

100% keep it. Your costs are of no concern to your customer.
Click to expand...

The benefit of turning around to your customer and being honest with them and informing them that it wasn't as expensive as originally quoted should not be underestimated.

I had a similar situation 2 years ago with my business. The sum was a lot larger than 2k....i returned it. This client to this day has only done business with my organisation. Would it have happened if I had kept it.....maybe. Put yourself into the clients shoes. If a company you had contracted to do a job phoned you to return money because of an overestimate.....you would probably go back to them again.

Also 2k in the grand scheme of things is not a lot at all.
 
Rifte said:
The benefit of turning around to your customer and being honest with them and informing them that it wasn't as expensive as originally quoted should not be underestimated.

I had a similar situation 2 years ago with my business. The sum was a lot larger than 2k....i returned it. This client to this day has only done business with my organisation. Would it have happened if I had kept it.....maybe. Put yourself into the clients shoes. If a company you had contracted to do a job phoned you to return money because of an overestimate.....you would probably go back to them again.

Also 2k in the grand scheme of things is not a lot at all.
Click to expand...

To be honest, I'd base my decision more on the quality of the work.
 
You must log in or register to reply here.
Back
Top Bottom