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I can't really ad anything to the well considered replies, but I will tell you that this estimating and sales part of the job that we do is with out a doubt the most emotionally draining thing that I have ever been through. (Which is saying that I have had a pretty easy shake in life, actually)
This sales part of the job is where we are either ACCEPTED or REJECTED, I am certain I am not the only one who struggles with that. Some of us are defensive, others defeated, others may have given away margin to buy the acceptance of the homeowner, others of us are actually bellegerant when a proposal is not accepted.
Here is where I stand on the whole thing. We are here to help people achieve their goals. We get paid to do that. If their goals don't match their ability to achieve those goals...well frankly that is not my problem. They have to reconcile that with themselves. If your company has to charge a higher margin to stay alive, and they choose a cheaper company, then they have chosen how to achieve their goals. (and they will get what they pay for)
I once told a price sensitive customer (while trying to justify my price) that I paid my people well enough that they were able to buy their own home. (And now think about how important that roof over your head is to you and how much more secure you are that you are building equity instead of wasting your money on a rent check every month) And this guy basically told me that he didn't care if the craftsmen, my guys who were going to give him his own Eden lived under a bridge, so long as he didn't pay more than he had to . ---we did the project and he screwed me out of 10% of it---
I have learned since then haven't I? Our goals of a self sustaining business are not shared by all of our customers.
I have recently taken to really getting my estimates acurate (after reading the Huston book) and I am finding a lot of price resistance this season. I have to think of it this way... I am in the business of helping people. At a proposal presentation I am presenting the facts. If their expectation is to pay less I try to cut the scope in some way to help the customer achieve their goals. Beyond this what can I do? I can't meet their expectations at the expense of my own.
Wow... What a therapy session that was........
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