Mark-up (was Steinway parts)

[David Love]

A set contract with a stipulated fixed price (a bid) is not, by definition,
an estimate.  Paul states that the losses and gains balance out.  So that
suggests that when he ends up ahead he keeps it and when he ends up behind
he eats it.  That's good for the person for whom he eats it, not so good for
the person from whom he keeps it.  What you're doing then is simply
overestimating the job and returning it under the estimate for things you
don't end up having to do. That's something different.  That's ok if you
want to do it that way and I can see the benefit of simply saying we
approach the job assuming we will do everything and it costs $X.  On many
jobs, I now do it that way and I do everything, meaning, I don't try and get
by with not doing some procedure just because I can get away with not doing
it.  Do the job right and be thorough.  However, there are often times when
someone is trying to hit a budget on a project.  You end up trying to do
what's necessary for their benefit but you discover in the process that you
can't really get away with skipping some procedure you thought you might
have a chance to.  Do you eat it?  Or do you go back and say, hey we did the
best we could to come in on your budget but we think this procedure really
needs to be done and here's why...  And, btw, that possible contingency
should, ideally, be outlined in the "Estimate/Proposal".  Problems with
trustworthiness mostly come from not taking the time to explain procedures
and discoveries.  I will work with people as much as possible to accommodate
them but I won't compromise the quality of my work (that does come back to
bite you) and I won't work for free.  I've always done it that way and don't
have any problems with suspiciousness or accusations of bait and switch
tactics.  

David Love
davidlovepianos at comcast.net 
www.davidlovepianos.com

-----Original Message-----
From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf
Of A440A at aol.com
Sent: Tuesday, February 19, 2008 6:53 PM
To: pianotech at ptg.org
Subject: Re: Mark-up (was Steinway parts)


 
>>We have never, not once, raised our price on a job after the estimate is
signed. And we have eaten a lot of mistakes and unseen stuff over the years.

>>

>David writes:

<< Then why do you call it an "estimate"?

       It IS an estimate.  I give my estimates on a "not more than" basis.  
In the early days, it occasionally cost me money and time, but paid me back 
with a reputation of being trustworthy.  This has remained with me as I have

raised my prices to cover all unseen circumstances and now about 50% of the
jobs I 
can bring in under the original estimate.  Customers love this, and
customers 
HATE having the agreed upon price rising after the job has begun.  I enjoy 
the freedom it gives me to do what I feel I need to do to deliver
performance 
level work.  My customers like it because there is NEVER any suspicion that
I am 
doing a "bait and switch".   
  It was an investment I made in building a clientele, and it has paid off 
quite well. 
Regards, 


Ed Foote RPT 
http://www.uk-piano.org/edfoote/index.html
www.uk-piano.org/edfoote/well_tempered_piano.html
 <BR><BR><BR>**************<BR>Ideas to please picky eaters. Watch video on 
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