How to reason with someone who agrees to an estimate then asks for money off?

[celtish]

This stuff happens infrequently but drives me insane because I don’t know how to rebuttal.

I’ve owned a service based business for 7 years now. The payment structure is based on hourly labor. I estimate a range of how long a job will take ex. 10-14 hours. After so many years of doing it I’m very good at estimates and most customers are happy when they sign a contract showing a certain dollar figure and it falls within their expectations.

My question is about a few customers with whom a conversation goes something like this.
Me: your estimated hours are 10-14
Them: okay, sign contract
Me: your total is 12 hours, please pay
Them: give me a discount because I thought it was going to take 8

This situation is so hard for me because I don’t want to sound rude but how do I say “why did you think you know better than me, a professional in the industry?” Without sounding rude?

 

[olachi85]

@celtish The trouble with ranges is the client hears the low end and we hear the mid point. Just shift the range of the estimate to suit.

 

[patty77351]

@olachi85 Undersell but over deliver. I also own a service company. Clients are always excited when the real price is under the estimated price they agreed to. Big jobs get bids though, those prices are set in stone.

 

[prattpratt]

@patty77351 This.

 

[gregorypalamas]

@prattpratt Why did you get downvoted?

 

[kazurk]

@gregorypalamas It adds nothing of value.

 

[jhferguson]

@olachi85 That's hard though when you. Have heavy competition and are competing on price.

 

[doublej23]

@jhferguson Then you gotta find a better differentiator than price.

 

[jhferguson]

@doublej23 It depends on your market and your tier. Sometimes you don't get to decide that. And the fact is people are shopping based on price. This economy is rough and only getting worse.

 

[ladyofthedogs]

@jhferguson This is true. Although I was contemplating a specific quote differentiator whereby I underlined how my work was completed.

As well as giving the customer options. Making them feel in control whilst protecting my margins and delivered quality. The customer perceives risk in quotes where it isn't outlined /presented to them .

 

[jhferguson]

@ladyofthedogs Great point

 

[olachi85]

@doublej23 Agree with this.

 

[wolfspirit]

@celtish Don’t give a low end. Tell the customer that the cost is $$$ per hour and you feel this job could take “up to” 15 hours. When it takes 13, you send them and invoice for the estimated 15 hours with a discount for “unused hours”

 

[nwoods]

@wolfspirit Or even better, "at least 15 hours".

The choice of language is crucial in these situations, and managing expectations right from the very beginning is key to minimising "give me a discount" shitfights with arsehole customers at invoicing time.

 

[wolfspirit]

@nwoods We’ll have to agree to disagree on this. In my experience, customers mentally want a cap. I prefer a bid high and discount the remainder approach.

 

[tril1011star]

@wolfspirit No need to set a cap

 

[melita8]

@wolfspirit The problem comes in when it actually takes him 18 hours.

 

[wolfspirit]

@melita8 He said he was good at estimating. It doesn’t work otherwise.

 

[melita8]

@wolfspirit lol. Good at estimating =/= perfect at estimating.

The phrase "At least" Or "Minimum" makes this advice magically work in all situations.

 

[fausto1973]

@wolfspirit Great idea