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Topic:
A Frightening (and long) Story
This thread has 21 replies. Displaying posts 16 through 22.
Post 16 made on Sunday December 19, 2004 at 16:17
QQQ
Super Member
Joined:
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January 2002
4,806
On 12/19/04 16:04 ET, studiocats1 said...
What works for one company may not work for others.
I provide a detailed summary of what the system
will and will not do. You have to be very specific
and personalize the proposal for the client. If
you want to land top notch clientele you must
be firm in your position not to provide line item
pricing. A nice functioning demo also helps. Sell
yourself and your company. Not Sony, Denon, Pioneer,
etc.

I agree and always like your posts. Can't agree more that an outstanding proposal presented by a successful professional will mitigate such requests.

However, I am curious. Would you refuse to provide any breakdown of pricing and be willing to lose a project to a client that was not comfortable with your approach? The largest project I am working on right now involves a client that insisted on line item pricing. He was willing to pay more, MUCH more than competing bids to have the project done right. But he was not comfortable with anything less than line item pricing.
Post 17 made on Sunday December 19, 2004 at 16:32
studiocats1
Long Time Member
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Posts:
February 2003
482
Sorry QQQ but I DO NOT bid on projects. If I had ten cents for every hour wasted bidding on jobs I would be on easy street! As soon as I find out it is a bid job I bow out and move on to the next one. Usually they come back asking why I will not bid and I tell them we are a design/build firm and we supply custom systems designed exclusively for our clients. You can't send something like that out to bid.

Don't design this guys system for FREE! If you must give him line item pricing charge him for it. After all it is the basis for your design. He wouldn't ask a builder to supply him with an equipment/materials list for his new house without a design fee right?
Post 18 made on Sunday December 19, 2004 at 17:30
SkyBird
Long Time Member
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Posts:
March 2003
349
I completely agree with Studiocats, I stopped doing line item proposals.

In my experience the client would pick through and discard the things that he wants or could wait for in the future. The first thing to fall by the wayside was the lighting.
On our end, that takes all of the fun out of the project.

I stick to what I and the system will be able to do for him once completed. I've never had a customer specifically request line item pricing. The most important thing is to resist padding the cost because your not itemizing.
Post 19 made on Sunday December 19, 2004 at 17:42
Trunk-Slammer -Supreme
Loyal Member
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Posts:
November 2003
7,462
Tossing my penny in the pile on this one.

I don't think it matters a bit if you have a line itemization or not. Some customers will shop your quote regardless of how you present it.

One of my competitors presents his proposals without so much as a specific equipment line item. His proposal lists only "one pair of front surround speakers', etc. etc.

And he tells me he still gets shopped!

It's the nature of this business......
Post 20 made on Sunday December 19, 2004 at 17:50
QQQ
Super Member
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Posts:
January 2002
4,806
Studiocats1,

You are preaching to the choir. Let's not debate over semantics. I do not give "bids" either. The project I referred to is one we already have. The client had received several "bids". Then he was put in touch with us. Our price was MUCH higher than the competitors. That was not a problem but he did want line item pricing as part of the design. I ask again. Would you have refused to give it to him?
Post 21 made on Sunday December 19, 2004 at 18:01
teknobeam1
Active Member
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May 2004
626
On 12/19/04 14:24 ET, studiocats1 said...
No more line item proposals. These days it is
impossible to make proposals with all the equipment
listed with model numbers and a price for every
little detail. Not only have you designed the
entire system for free up front but everyone will
shop SOMETHING from it. Theres no way around it.
Just list one final price for one complete system.
We are selling systems here not individual components
right?

I agree with your approach for the most part. I always attempt to leave out line item pricing and only include the items and their quantities with a system total at the end. If a customer insists on a line item price breakdown, I will decide on an individual basis. I have walked away from jobs where I felt I might be providing a shopping list. I won't install equipment a customer buys, unless it is a very special circumstance. If they want a system or systems, then they should look at the big picture. it's partly about support and building a sense of trust. The larger the system, the more important this is. If the guy gets a plasma for christmas (it happens), then of course that would be a special circumstance. If he has existing equipment that he is married to, that's also a special circumstance. If he just wants someone to install his good deals and then become responsible for it's performance, I'm not the guy for the job
Post 22 made on Sunday December 19, 2004 at 19:38
studiocats1
Long Time Member
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482
On 12/19/04 17:50 ET, QQQ said...
Studiocats1,

You are preaching to the choir. Let's not debate
over semantics. I do not give "bids" either.
The project I referred to is one we already have.
The client had received several "bids". Then
he was put in touch with us. Our price was MUCH
higher than the competitors. That was not a problem
but he did want line item pricing as part of the
design. I ask again. Would you have refused
to give it to him?

If he is paying for a design then line item away. All I am saying is don't give away your design knowledge for free. All the other design professionals involved in the process of building charge a fee. Why do people think A/V is different?
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