Why You Should Never Give Clients a Good Deal
By Scott Carroll – Garden Designer
Everybody is always asking for a good deal, but if you reduce your prices for clients you can end up regretting it down the line. Charging the right amount allows you to deliver your product or service to the highest standard.
When calculating the cost of a job, assume that everything will go wrong and then add another 10%.
If you quote a job too low, you could lose a lot of money, disappoint clients, and run yourself out of business. On the other hand, if you accidentally quote a job too high, both you and your client can benefit. This goes for any type of business, but here is an example from my landscaping business:
Last Friday I was spreading mulch in a client’s garden. As I was getting close to the last garden bed I realized I still had quite a bit of mulch left. This was surprising to me as it was only the first cubic yard of mulch. I had quoted her for 2 yards and I just barely finished one. This was good news because it meant I wouldn’t have to go back to the landscape supply depot to get more. Instead, I was going home early with the job done under budget.
My client came outside as I was finishing one of the garden beds to pay me the amount we had agreed upon, but since I was under budget I gave her $100 off. She was pleasantly surprised and gave me a little extra anyways. If you can deliver more than you promised, you will have clients coming back again and again for a better customer experience.
I’ve also made the mistake of caving when a client asks for a better deal. I would make my profits razor thin and leave no room for errors. When you run out of money and you still need to finish the job you have 3 options: cut corners and deliver an inferior product, ask the client to raise the budget, or bite the bullet and lose money on the job. All 3 of these options put you in awkward situations and sour your relationship with the client.
Never compete on price. Rather, improve your offer by giving your clients a better experience.
Thanks for reading!
For a free quote on your garden design, tree planting, or pond building project, call me at 289-943-5477
Scott Carroll
Carroll Property Services