Underpricing yourself

[nev]

Please keep it civil gentlemen. We can agree to disagree without resorting to insults. (I Hope!)

 

[Random Orbital Bob]

Has that changed somewhat recently then as my understanding has always been that if the retailer makes a labelling error they are obliged to sell it at the advertised price?

No, they are under no obligation to sell at that price and I think that's been the case for a long time.

That is correct, I'm afraid that's an old myth Bob, I believe the legal term for a price tag is something along the lines of 'an invitation to treat' and if the customer gets to the cash desks and the sales person realises a pricing error has been made, they are quite within their rights to refuse to sell at the lower 'wrong' price. Many people though believe as you have said, that they are legally obliged to sell at the 'ticket price'.

Dam.....I'll have to stop swopping the cheaper price tags onto more expensive goods

 

[Phil Pascoe]

No, just swap the bags and go through a self service checkout...no, hang on...you have to ensure they weigh the same :lol:

 

[promhandicam]

Please keep it civil gentlemen. We can agree to disagree without resorting to insults. (I Hope!)

Its only when things kick off on UKW and toys start flying from prams that I find it worth following a thread :wink:

 

[Cheshirechappie]

Not sure what the law says these days, but during my days in industry all quotes where on the basis of prices ruling at the date of the quote and possibly fixed for a specified time (three months was quite common); thereafter the contractor was entitled to charge prices ruling at the time of purchase. (Mind you - some of our contracts could be many months or even years between quote and contract placement, so scope for updating was an essential element.)

The one thing that is critical is that both customer and contractor are clear about the terms, whatever they may be. Fixed labour charge - or variable hours at fixed hourly rate - plus materials at cost plus a handling charge are perfectly acceptable contract terms provided both parties agree at the time the contract is placed; the sensible contractor will provide proof of actual purchase price for materials to demonstrate to the client that no sharp practice is being used, should the client require him to do so.

 

[MMUK]

Your contract terms may well have been good 7 years ago, and in principle I agree with what you are trying to do, but have you tested them against new legislation? in particular the Unfair Terms in Consumer Contracts Regulations 1999 which changed the playing field a lot in regards to deposits and cancellation clauses. See a summary here http://www.justice.gov.uk/downloads/cla ... sumers.pdf

Thank you for that link, and for being the only person to offer a sensible insight into the situation, unlike most on here who are only too quick to start a virtual punch up :roll: :roll: My terms may well need adjusting to suit modern legislation, a lamentable oversight on my part (and my now EX legal advisor! :evil: ) I shall get that looked into and re-drawn as necessary.

But as I said earlier,, I don't think I have had to resort to clause enforcement since around 2007. Nevertheless I'll get it looked at.

Thanks again =D>

 

[Fatboy]

no problem, its always a good idea to review your paperwork, contracts etc annually, I have to do ours twice a year!

 

[Phil Pascoe]

MMUK - I didn't have a dog in that fight, but as far as starting virtual punch ups are concerned I would look a little closer to home. :wink:

 

[MMUK]

MMUK - I didn't have a dog in that fight, but as far as starting virtual punch ups are concerned I would look a little closer to home. :wink:

The difference being I don't go out of my way to start them :wink:

 

[chippy1970]

Please keep it civil gentlemen. We can agree to disagree without resorting to insults. (I Hope!)

Its only when things kick off on UKW and toys start flying from prams that I find it worth following a thread :wink:

Lol me too steve

Sent from my HTC One using Tapatalk

 

[Mark-numbers]

The most surreal thread I have read in a long time?!

Contractor: Mr Smith here is your quotation to supply and fit kitchen for 10k
Mr Smith: Thank you I accept your quotation.
Contractor: Excellent, please pay me 3K deposit
Mr Smith: Cheque or Cash
Contractor: Cash please

A few days later

Contractor: Hello mr Smith bad news I am afraid, I have underpriced your job by 3k you will need to pay me the extra.
Mr Smith: No you quoted me 10k not 13k, so no i don't agree, and I want it done for 10k
Contractor: OK **** you, I am keeping your deposit for wasting my time!!

 

[jordec66]

You get prices of timber at the pricing stage- surely :|

Sent from my GT-I9300 using Tapatalk

I was giving an example of how I normally price a job. I'm not talking specifically timber. A lot of the materials I use in the course of my work have regular price fluctuations. I offer my quotes as valid for 60 days normally, in which time materials could have gone up or down by as much as 30%. I do have this written into my contract terms as standard, which the customer reads and then signs. So if they then decide they don't want to pay the price hike, they forfeit their deposit. All my quotes are itemised so they know exactly where the increases are going.

30% in 60 days, you need to find a new merchant.

 

[Cheshirechappie]

I think there's an element of 'risk management' to take into account when pricing a quote. If you're pretty sure that material prices will remain stable for the time the quote is valid, and you're pretty sure about the number of hours the job will take, you could risk a fixed price contract (maybe with a 10% addition to the calculated price for contingencies). If you are not sure about material prices, quote cost price attime of material purchase plus handling charge, and if you're not sure how long it'll take, quote hourly rate with a top and bottom estimate of hours. If it's a job with a vague spec, in which variations to contract are a nailed on certainty, you'll want to reflect that in the quote, too - additional work at labour plus extra materials plus handling charge.

As so often, horses for courses. That, and being absolutely honest with the client at all times. If they want a fixed price for a vague job sometime in the future, walk away and leave it for someone else.

 

[Mark-numbers]

To the OP

If you have under priced yourself massively, then try and renegotiate with your customer, if its only a few quid, then suck it up. In business the key thing is to never lose face, as this can harm your reputation. I own a medium size joinery company, I employ 9 bench joiners. I have quoted for things in the past that I have won and lost money on, the next time I don't let this happen, you must always learn from your mistakes!