Presenting options and price without apologizing, and what to say when the other guy is cheaper

In one paragraph

The price conversation is the last five minutes of the diagnostic method, and most new contractors lose it by explaining, discounting or apologizing. This lesson gives the four-line presentation that works (what we found, the three rungs, the price of each in the contract's own form, and which one we recommend and why), the reasons a price is a price (the schedule of progress payments, the deposit cap and the license number are on the paper for a reason), and the three honest answers to the other guy is cheaper: ask what the other quote includes, name the three things a lower quote usually leaves out (the permit, the code items, the paper), and let the customer choose without a fight. Also: the four things you never say, and how to hold a price you know is right.

The rule

A home improvement contract states its price in dollars and cents and describes the project and significant materials (B&P 7159(d)(5), (d)(7)); the down payment is capped at $1,000 or 10 percent, whichever is less, and no payment may exceed the value of work performed or material delivered (7159.5(a)(3), (5)); every bid and contract carries the license number (7030.5); and using false or misleading statements to procure a contract is a misdemeanor and a disciplinary cause (7161). A price presented on that paper is a lawful, complete price, and it does not need an apology.

Why it matters

You will sell the same job to two customers on the same street at two different prices depending on how you present it, and the difference is not the number. Customers pay for certainty and respect; they walk from confusion and defensiveness. The presentation below is what turns the options sheet into a signature, and the cheaper-guy answer is what keeps your price from becoming a negotiation.

More in Customers, Warranties, Complaints

Browse the whole After the License track

Help