![[TFU] Thegoon84](/styles/overclockers/avatars/6.png){kind=avatar}
Soldato
- Joined
- 17 Jun 2009
- Posts
- 7,089
- Location
- Swansea
I'd give 1k back, knowing you're seriously up and likely to receive many rec's from them.
Business question
- Thread starter antijoke
- Start date
100% keep it. You quoted a price which they were happy to pay. That's what makes the world goes round. Anything else is madness.
Everybody is saying give them some back as a sweetener, but in my mind going back to a client and admitting you made an error in your quote is going to do far more damage to your reputation. Why doesn't anybody else see this?
They're not going to trust your sums next time around.
Best scenario is keep it and make sure to offer them a discount on future business. But tell them about that discount now as your 'sweetener'.
Everybody is saying give them some back as a sweetener, but in my mind going back to a client and admitting you made an error in your quote is going to do far more damage to your reputation. Why doesn't anybody else see this?
They're not going to trust your sums next time around.Best scenario is keep it and make sure to offer them a discount on future business. But tell them about that discount now as your 'sweetener'.
No, it comes down to the outcome of the project and quality of work.
For all we know, he couldve submitted the cheapest quote against 10 competitors.
If a retailer is selling a range of shirts for £30 with a cost of £x to manufacture - do you think they'd then reduce the entire line because 1 fabric came in cheaper?
Poor example maybe but you get the point. Production costs are of no concern to the consumer.
Everybody is saying give them some back as a sweetener, but in my mind going back to a client and admitting you made an error in your quote is going to do far more damage to your reputation. Why doesn't anybody else see this?
Dont say you made an error then. Spin it into a good thing.
"O I found a way to save some money in the process. Didn't feel right keeping the extra so here you go. Look forward to doing business in future"
I agree though if you admit a mistake in the pricing they're probably not going to be that impressed. Although you did give the money back so
.That still sounds like amateur hour to me.
Without context it's harder to assume.
However as everyone (who is smart) has stated, you provided a quote, completed the job and now are to be paid.
You just made more profit on that particular job, you can learn from it and quote a little cheaper next time and be more in line with your costs, or know you can make an extra 10% with the quote.
However as everyone (who is smart) has stated, you provided a quote, completed the job and now are to be paid.
You just made more profit on that particular job, you can learn from it and quote a little cheaper next time and be more in line with your costs, or know you can make an extra 10% with the quote.
Your pricing is wrong. Something is worth only as much as someone is willing to pay for it, but your pricing doesn't seem to reflect the works true value.
I'm not sure I'd agree with that.
The pricing was clearly competitive otherwise they wouldn't have accepted it. The costs of delivering the service really have no relevance on the market value - just on the profitibility.
I'm interested in how you arrive at this conclusion?
If his price bagged him the work then his pricing is spot on. True value means nothing, it's all down to how much someone is willing to pay for it that's how the whole world works.
My apologies, I don't mean the pricing used to arrive at the £20k figure is wrong, I mean the pricing used to arrive at the £18k figure is wrong.
If someone accepts £20k is the correct competitive price for services or goods then that should be the correct pricing to use.
Option C, Charge 19K. You gain extra profit, they get charged less and are happy customers that would refer you to a friend.
Its got nothing to do with making a pricing error or accurate quote. Price estimates are exactly that, an estimate. What if it had cost 22K to do the job, would you be happy accepting 20K in payment because that was our quote? Just say that you managed to do the job underbudget and your pricing quotes include a small buffer in case jobs end up harder than expected. In this case you didn't need that buffer.
BUt I certainly don't think it is bad to charge them the full 20K. Its just you may be able to generate increased business down the line
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If you knowingly give up profit on a Contract after the services are delivered then you are mad. If you show a Client you are soft touch in a bid to get future work then you open the door to all sorts of future manipulation / requests for freebies "could you just do this for me?"etc.
The Client agreed to a fixed price Contract. This type of Contract is much riskier for the provider of services. How can people not see this? The limit of liability for the Client is fixed, but the supplier is beholden to the cost quoted and if the supplier fails to deliver due to budget overruns he could suffer breach of Contract! You have taken the risk and earned your reward.
A Client will use you to get a good deal only as long as it suits. As soon as you fall on the wrong side of cost for a fixed price job the Client will not hand over cash. Handing back profit is something only a fool would do. Use that money to invest in your business or bid for other work and win other Clients. You are already doing well and have set up a profitable business, take it as far as you can.
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[TW]Fox;30057443 said:
What this gentleman said.
You need to stop thinking about your business partners as a circle of friends. You are a business to make money for yourself, not to make gifts to others. They were happy with the quote, if anything, next time you should review how to make your internal costs even lower, because that 10% profit margin, that you are now, for some reason, struggling ethically with should be closer to 50% at least.
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Ethically nothing wrong in keeping the 2k. It was agreed before hand, and the customer is happy. End of. For me though I would look at an opportunity here. For me 2k profit would make barely any difference in my business so I would be happy to reference myself further on down the line if I could.
Each unto their own though. If 2k is a big deal by all means take it.....
A quote was agreed between OP and concerned party. Whether it was an expense or loss to the OP would be a result of the initial quote being agreed.
Basically OP keep the money as you quoted a price that was agreed upon.
A
In my line of work, getting the job done 'under budget' (number of hours x charge out rate < quote) is seen as a job well done, the firm has made some extra cash. On the flip side, jobs do sometimes take longer, and the hours x charge out rate > quote. In these cases, the difference has to be written off, but it's no big deal because margins are typically high (financial services rather than selling stock).
In my line of work, getting the job done 'under budget' (number of hours x charge out rate < quote) is seen as a job well done, the firm has made some extra cash. On the flip side, jobs do sometimes take longer, and the hours x charge out rate > quote. In these cases, the difference has to be written off, but it's no big deal because margins are typically high (financial services rather than selling stock).
