# Customer keeps telling me to ask for more money.



## ForTheArborist

I've never encountered this in my business practice so far. I'm working on a nice estate taking out a few trees and some other tasks. 

I've developed my prices for services around the average craigs list customer. My prices are competitive on the chicken scratch level craigs list market. I've just got the customer I've got now through another customer instead of craigs list. It's his boss.

I keep giving him numbers for the services, and he keeps telling me to ask for more. "I'm going to pay you. Don't be scared to ask for more" he says. Usually my customers pee themselves when I tell them the truth about what these things cost, but this guy is insinuates something else.

Thats my story. What should I do with this guy? I could really use some extra money to expand my gear and service level here. Should I just ask for the same price I get from everybody else, or should I round those digits up?


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## bulldoglover

I do work in two parts of the state, in my home town area I charge a lower price. Blue collar guys, old mill towns etc., when I go to the sea coast my rate goes up. I don't raise it to screw them, I raise it to keep in line with the other companies out there. The people expect a higher price, so I adjust for it. I often get one of two responses after a quote... "wow" (bad wow) or "Is that it?" (knowing that I should have quoted a few more bucks). As far as your question, I say adjust your prices slightly (as long as you have not given him all your quotes). If your in a nicer area, they probably expect a hight price and a better product. Just deliver a good end product and you should be all set.


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## ForTheArborist

bulldoglover said:


> I do work in two parts of the state, in my home town area I charge a lower price. Blue collar guys, old mill towns etc., when I go to the sea coast my rate goes up. I don't raise it to screw them, I raise it to keep in line with the other companies out there. The people expect a higher price, so I adjust for it. I often get one of two responses after a quote... "wow" (bad wow) or "Is that it?" (knowing that I should have quoted a few more bucks). As far as your question, I say adjust your prices slightly (as long as you have not given him all your quotes). If your in a nicer area, they probably expect a hight price and a better product. Just deliver a good end product and you should be all set.



Right.


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## 48"BAR PINCHER

I have a customer for several years now who does the same to me. He has done very well for himself and retired @ 50 yrs old with lots of green to play with. He loves to tell me " Boy... you got to get it from those that got it!! Charge them till they squeal then back off till they stop the squealing and hold it there. If they ain't got it... find someone who does!!" Can't say I live by that but it is food for thought and yes there are those few kind of people out there.


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## ForTheArborist

48"BAR PINCHER said:


> I have a customer for several years now who does the same to me. He has done very well for himself and retired @ 50 yrs old with lots of green to play with. He loves to tell me " Boy... you got to get it from those that got it!! Charge them till they squeal then back off till they stop the squealing and hold it there. If they ain't got it... find someone who does!!" Can't say I live by that but it is food for thought and yes there are those few kind of people out there.



I know how to do that, and they live in my area. I'll probably try it out before too long to see what can happen. As long as I don't disreputize myself and my business, it's worth a joust.


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## familytreeman

*pay*

If it werent for those bubbas out there doin it for cheap, than the industry would gain respect more quickly.

Being a certified arborist is starting to be THE LAW in order to do tree work.


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## davistree

*Money*

Here in lies a moral issue in my opinion. Do you charge more just because a person has a greater liquid income to play with? Or charge less than you normally would based upon a person s inability to pay? I have found great success by bidding the job. Bid the job. Customers that have bankrolled a greater income over their lives maybe trying to teach you a thing or two about business. I would listen to all that they offer. However, at the end of the day, you have to make the decision. I have found small niches all over my area that are high income estates that no longer call for other estimates, I get a call to do the work, they don t want a bid, just the same fair bill that they have always received. They call and tell me to come take care of a hanging limb, tree, etc. and give me permission to trim or remove any other tree that I see an issue with. Everyone gets the same fair deal in my book.


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## anne929

I am talking for myself here, and this is just my opinion. I would just charge him the same price and if he is really satisfied with my work, then he can recommend me to his friends. 


Greensboro Tree Service
tree service Birmingham


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## RAG66

Tell him to refer you, it would be the best compliment. You also might try to bump him $25-50 on a given job and see how it goes. Because he is a repeat customer you need to keep up your quality, that is why he uses you in the first place.


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## homemade

Iv never been a huge fan of asking for more money, Do your best and you'll get it your just rewards in the end. I would say "This is my rate, if you feel I deserve more, then I'm willing to accept what you feel confortable on giving me." I wouldn't exactly turn it down for two reasons. It may be insulting, like refusing a gift. And we could always use more money.....bigger saws, better equipment...


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## COUNTRY6543

I give a fair price no matter who it is and I sleep good at night. I am my own worst enemy.


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## formationrx

*about the price...*

for me.... they are rarely happy no matter what .... i always get .... "that much?" and they are shocked.... or its "thats all!" and they cant believe it. ....i give old people a cheap price. and i give rich snotty bastards an outrageous price.. thats me... is it fair?... i dont care!


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## tree md

Personally, I don't like getting tips... Makes me feel like I left money on the table... :eek2:


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## ewoolsey

i get $25-50 bonus on a lot of my jobs, most just add it to check, just be there when they need you.


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## justme23005

I have one regular customer that gives me an extra $100 every time.. I take that into consideration when I write his estimates.


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## shooterschafer

My friends and family tell me I dont charge enough, but I like to be fair and not rape my customers. Now if its a high risk job I tend to charge a little more. Usually its the rich ones that are stingy and want the cheapest price, thats how they got there.


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## Oak E Doke

Charge em till he Squeals then back off. :yoyo:


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## Fairbanks Stump

*Just do your best work EVERY time*

Be the very best in attitude and aptitude, charge what the market will bear and never feel uncomfortable if the customer truly appreciates you for the professional that you are. And enjoy the success that comes with being the BEST ! 
Thanks 
Jon


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## ashevilletree

I would'nt rip off anyone, I think it's a good idea to charge differently for the craigslist people because we all know they're all about "bottom of the barrel pricing" but you've got to stay competitive with the rest of your market.


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## littlestinger

If some potential customers are not telling you that you are charging too much and they are going with someone cheaper, you are not charging enough.

There is always someone willing to go broke faster than you are...


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## D&B Mack

How I am going to put this is kind of confusing, but here is what I have learned over the years.

Don't let the market dictate your costs. If you are short on work, you may have to find a way to work down your prices to be more competitive in the market; but do not work for market prices just to get work. Basically, you need to know your costs. 

Are you making a profit working at the prices you are at now? 

If so, then the only reason to raise your price is if you want to make more money, but don't necessarily want to do more volume. If you want to increase volume, then keep your profit margin at your pricing level. 

If you are not making a profit, you either need to raise your prices or lower your costs.

Seems like simple stuff, but I have seen so many times where guys price their services/products just based off the perceived market value. This can be disasterous; you may be working at a higher cost than someone else and you are not turning a profit where they are. But by the time you figure this out, it is too late. You also do not know how the competition came up with those numbers. They may be making additional monies off another product or service you are unaware of.

About your initial question, guess you can't argue with a guy who wants to pay you more. But if you are making money, and you want more work, I would politely decline and tell the customer "Sir/Madaam, I am doing fine with numbers and they are acceptable to me. If you feel that I am too cheap, please tell your friends that I am the cheap guy who does quality work." :msp_smile:


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## HappyTreesLLC

I never price a job base by color, sex, income, location etc.
My price is always fare to every one.
Hire accountant to calculate how much your work hour is actually cost. Include all factors like retirement, bonuses, losses, marketing, sales, maintenance, depreciation .... accountant knows.
And then charge it.
If you set up to run of crappy pickup truck and pricing base on it, don't cry about not having money for shiny International.
If you not respect your work - ho will?
If you pricing based on Craigslist competition - you are not businessman, go work for large tree company. You will do better. They (tree company) will respect you and take care of your salary, benefits etc.

Here is test for you:
1. How much cost you a lead, how much customer?
2. What is dynamic and static operational cost?
3. What is your cost of removal material from site per ton?
If you are more then 2 years in this business and have difficulty to answer - get out or grow up.
With best intentions and no disrespect.
If you need help call me 603.508.1060
Victor


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## HappyTreesLLC

D&B Mack said:


> ...
> If you are not making a profit, you either need to raise your prices or lower your costs.
> ...


 This is GOLD!!!


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## lknchoppers

I would put it to him, just to make him happy but I wouldn't make him squeal to bad. Then take you time and do a little extra. Beating people on craigslist makes everyone work too cheap anyway. Check on him a week later to make sure he is satisfied and be sure he will refer you to his buddies.


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## Marshy

homemade said:


> Iv never been a huge fan of asking for more money, Do your best and you'll get it your just rewards in the end. I would say "*This is my rate, if you feel I deserve more, then I'm willing to accept what you feel confortable on giving me."* I wouldn't exactly turn it down for two reasons. It may be insulting, like refusing a gift. And we could always use more money.....bigger saws, better equipment...


 
Exactly. Reminds me of story my sister in law told me about waiting tables. Lady pays cash for her bill and when my SIL brings her the change ($0.30!) she has enough ballz to say "oh honey, you could of kept that" as she dumps it into her purse. Apparently they lady thought she deserved the change as a tip and mid sentence is dumping it into her bag!

Kind of the same thing here. He says you should charge more but hasnt slipped you an extra $20, $40 or $50 when you give him the bill. If he felt you deserved more he would have given more IMO. If you are paying for a service and feel someone is going beyond the duty and providing outstanding service then it's as simple as giving a tip. Anyone can be tipped. The guy pumping gas, drying your car at the car wash, your landscaper, the plow guy, or your arborist.


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## blades

Well there is always the the utility method and the waste/ trash collector methods of improving bottom line. It is called surcharges and fees like: environmental, fuel, mileage, consumable/ shop material fees. So you quote then add the surcharges at the bottom. Some due this on a fixed charge others on a percentage basis. 
Say you due a job and you dull out 5 chains- what is the cost for sharpening in your area - you charge that as a material/shop fee beyond the base quote. 
This has become more of the norm than the exception now days.


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## ChoppyChoppy

I raised my prices a bit this year from last and doubled my delivery charge.

I wasn't too sure if it would make break me. Honestly I have more business this year than last. A ton of repeats who have said I was "too cheap" last year and don't mind paying extra.


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