Why do my customers always negotiate my price?

Service Penguin 7 min read Reviewed
A front porch with a welcome mat and potted plants, door closed, soft daylight

The short answer

Customers usually negotiate because of how you present yourself, not because your price is too high. A personal payment app, an estimate on a Google Sheet or in a text, and a job run through your personal cell all tell the customer you're not dependable and your work is average. Fix it with a line-by-line written estimate, a real invoice, one business channel for messages, and a floor price you hold.

Key points

  1. Customers often negotiate based on how a pro presents the job, not on the number itself.
  2. A personal payment app, a Google Sheet estimate and personal texts each tell a customer you're informal, and informal reads as negotiable.
  3. A written estimate with the work line by line, the terms and a signature line moves the conversation from price to scope.
  4. Know your floor price before you quote, and trade scope for a lower price instead of discounting the same work.
  5. Track your discount rate, which is discounted jobs divided by approved jobs, to see whether a change in how you present is working.

Why do my customers always negotiate my price? In most service trades, the cause is how you present yourself, not what you charge. Customers who get the estimate as a text, pay through a personal payment app and reach you on your own cell assume you're not dependable and your work is average. Average work feels like it should cost less, so they ask for less.

Nearly every pro starts out this way, and a notebook, a phone and a Google Sheet have launched plenty of good businesses. The question worth asking isn't whether your tools are fancy. It's this: what message are you sending?

Which signals make customers always negotiate my price?

Three signals invite haggling more than any others: getting paid through a personal payment app, sending the estimate as a Google Sheet or a text, and running the whole job through your personal phone. Each one tells the customer something about you before you've done any work. None of them is about your skill, and all of them can be fixed.

Customers compare bids. The FTC tells homeowners to get written estimates from at least three companies before hiring for a repair, so assume yours sits next to two others. When the totals are close, the bid that looks least like a real company is usually the one that gets pushed.

What does getting paid through a payment app tell a customer?

Asking to be paid through a peer-to-peer payment app tells a customer you're a side job, not a business. Those apps are great for splitting dinner with a friend, and plenty of honest pros use them. To a homeowner paying $600 for a repair, though, sending money to a personal handle means no invoice and no receipt with your business name on it.

Informal reads as negotiable. A real invoice with a way to pay by card or bank, and a receipt with your business name, tells the customer the price was set by a company and isn't open for a chat.

What does a Google Sheet estimate say about my work?

An estimate on a Google Sheet, or typed into a text, tells the customer your quality is probably cheap, because the paperwork looks cheap. Take a lawn pro's line that reads "Spring cleanup, $380". It gives the customer nothing to compare but the total, and the total is the only thing left to argue about.

A real estimate shows the work line by line, the terms and a place to sign. When the customer can see what they're paying for, the conversation moves from the price to the work.

What do personal texts tell a customer about my business?

Running a job through personal texts tells the customer you're eager for any work you can get, and eager sounds like you'll take less. Replies at 9 p.m. in a thread mixed in with your family's messages feel friendly. They also say you're one person hoping this job comes through.

One business channel for messages, answered during business hours, says you have a schedule and the customer is on it. Clear arrival times help too.

Why does looking unprofessional bring the worst customers?

When you look unprofessional, you tend to attract customers who treat you that way. They haggle at the start, complain in the middle and pay late at the end. A customer who talked you down $100 has already learned that you'll move.

A pro who looks like a company tends to draw customers who want a company: people who care that the work gets done right and expect to pay for it. Those are the customers who stay, pay and refer.

What should my estimate terms cover?

A clear estimate covers the work included, what's not included, one total, how payment works and anything that could change the price. Put it all in writing:

A clean concrete driveway and front walk leading to a neat single-story home
  • Scope: each piece of work on its own line.
  • Exclusions: what you won't do, so nobody assumes it.
  • One total: tax shown, no surprise fees added later.
  • Payment: any deposit, the due date and how they can pay.
  • Changes: what could raise the price, such as rotted fascia behind a gutter or a seized shutoff valve, and that changes get approved in writing first.
  • Signature: a place for the customer to approve.

The FTC tells homeowners not to let work start until they've reviewed and signed a written contract, so a pro who arrives with one is already doing what the customer was told to look for. Rules on contracts, deposits and cancellations vary by state, so check with your state or an attorney before you settle your terms.

Should I give customers options on an estimate?

Yes, and two options usually work better than one: what the customer asked for, and a fuller version such as a service plan. A single price invites a yes, a no or a haggle. Two prices side by side give the customer a choice between your options instead of a choice between you and a cheaper company.

For a heating and cooling pro, that might be the furnace repair alone, next to the same repair plus a twice-a-year tune-up plan. Keep it to two, because more choices can make people stall.

Worked example: three pressure washing bids

Example prices, not market rates. A homeowner gets three written bids to wash a two-story house and the driveway: $425, $500 and $575. She asks the $575 pro to match $425.

Defending the number gets nowhere. Laying out the scope does. The $575 bid lists a soft wash of the siding, gutter faces brightened, the driveway surface-cleaned, plants wet down before and rinsed after, a two-hour arrival window, a return visit within 7 days for anything missed, and card or bank payment from an invoice. The $425 bid came as a text that said "House and driveway, $425."

A good reply: "I can't speak for their bid, but here's what's in mine. If you'd like to drop the gutter faces and the plant rinse, I can do it for $495." The full job keeps its price, and she gets a real choice.

Example: what two pressure washing bids include (example prices)
$425 bid $575 bid
Format A text message Written, signed estimate
Siding Not described Soft wash
Driveway Included, no detail Surface-cleaned
Gutter faces Not listed Brightened
Plants Not listed Wet down and rinsed
Arrival Not stated Two-hour window
Missed spots Not stated Return visit within 7 days
Payment Personal payment app Card or bank from invoice

How do I hold my price when a customer still pushes?

Hold your price by knowing your floor before you quote, and by trading scope instead of discounting the same work. Work the floor out by hand for the job above:

  • Labor: 2 people × 4 hours × $28 = $224
  • Chemicals and surfactant: $35
  • Fuel: $25
  • Share of overhead (insurance, truck, gear, phone): $90
  • Floor: $374

At less than $374, you're paying to do the job. When a customer pushes, state the price once and calmly, ask what the other bid includes, and offer less work for less money. If they still want the full job below your floor, let it go.

How do I measure whether customers are negotiating less?

Track your discount rate, which is the share of approved jobs where you lowered the price:

Discount rate = jobs you discounted ÷ jobs approved × 100

Give-back = (total first quoted − total approved) ÷ total first quoted × 100

Example: 9 of 20 approved jobs were discounted, a 45% discount rate. You first quoted $9,000 and those jobs were approved for $8,300, so the give-back is $700 ÷ $9,000, or about 7.8%. A notebook column is enough for a month, so measure again after you change how you present your work.

What pros ask next

How fast should I get an estimate out?

Send it the same day if you can, and within a day or two at most. The customer is often collecting other bids, and the first clear, professional estimate sets the standard the rest get measured against. Speed only helps if the estimate also looks right, with the work line by line, the terms and a place to sign. A fast estimate that looks thrown together still invites a haggle.

How do I follow up on an estimate without being annoying?

Follow up on a set schedule and give a reason each time. Write two days after sending to ask if they have questions, about a week later to offer to walk through the options, and once more before you close it out. Keep each message short and polite. A follow-up that answers something reads as service. One that only asks "any update?" reads as pressure.

Why do customers stop answering after I send an estimate?

Usually they're comparing bids, waiting on a spouse or a budget, or unsure what's included and too polite to ask. Silence rarely means a firm no. Make it easy to reply. Invite questions in the estimate itself, offer a smaller option and follow up on a schedule. A clear scope and an easy way to approve remove the most common reasons people go quiet.

Is it ever okay to give a customer a discount?

Yes, when you get something back for it. A lower price for signing a yearly plan, paying a deposit up front or taking a visit on a route day you're already working is a trade, not a giveaway. The damage comes from cutting the price of the same work just because the customer asked. Cutting it teaches them, and their neighbors, that your first number isn't real.

References

  1. FTC advice to homeowners: get written estimates from several companies and sign a written contract before work starts, Federal Trade Commission

From Service Penguin

How Service Penguin does this

Service Penguin is how a solo pro or a small shop looks the part from the first quote. Customers sign line-by-line estimates on their phone, pay real invoices by card or bank, and message you in one thread in a free customer app. It's free to use, and it's built to grow with you from one truck to up to 10 crews. See how estimates work.

Free to use. No monthly bill.

We get paid when you get paid.

Create your free account

Browse all articles →

New answers, by email

Stay up to date

New answers for service pros, by email.

Submitting subscribes you to emails from Service Penguin. You can unsubscribe any time.