Am I a saint or an idiot and what would YOU do

I was asked to quote for a commercial job in Devizes. When I got there the person told me they had 2 quotes of £200 and £380 but he thought this was expensive and had been recommended to ring me by a previous customer. I worked my price out to £137 and was tempted to say £175 to still undercut the opposition but went with my heart and said £137 and got the job. What would you do if you knew the oppositions prices before you done a quote, be true to yourself or sneak a bit on. I am glad I resisted temptation as I honestly would never rip anyone off by deliberately overcharging ? MIGHTY COLIN

It may be easier in my field (accountancy) than yours but I would have gone in at £190 BUT offered more of a service or an additional service over and above my £137 offering. Then I get more 'sales' and you get better value (assumes you wanted the additional service).

You are a special case Colin because everyone tells you you undercharge!

Personally we always quote the price it takes us to do the job as it benefits no one in the long run to have a business relationship that is not based on trust. In your case you get so much more business because of your quality, integrity and low prices

If you were selling a product then I think the reverse is true - you sell it for the highest value someone will pay.

The price is the same, for me, despite the competition.

In your situation I would have rounded up to £140 as it's easy on the change front.
For the extra £3 you could have left them a bottle of your (branded?) cleaning stuff.

This has happened to me a few times and always stick to my own price, but I then point out to the client that I could offer additional features X, Y, Z if I did it for the same price as his lowest quote.

This gives the client the chance to choose what price he wants to buy at whilst giving you the opportunity to upsell.

If you manage to upsell, you have extra business and the customer has had a better deal, if you dont you still have the original deal

Well ,if your price had been £60 over the others and the promised service being equal, would you still have stuck to it or would you have dropped it (presuming it would still make a profit) to get the business and start a new relationship?

You do need to be careful you dont get too much of a reputation of being 'the cheapest decent cleaning guy going' as people will take the mick and drop their 'Ive been quoted £' prices below the truth to see how low you'd go.

Personally , like someone previous said, Id have charged say £175 and put in an extra service or finish that doesnt cost me much money/ time but has a higher perceived value to the client.

Don't be afraid to charge what you think you are worth ... the other guys are only over charging by your standards.

As for the odd £3 ... a friend of mine works with a vehicle damage estimator. He said they just make it up as they go along and as long as the numbers are always slightly odd and a slightly different nobody batters an eyelid.

Will you lot stop convincing Colin he's cheap!

My carpets need doing and he will be the man for the job when I get round to it. Wait until I tell you it's OK.

He's not cheap, he offers "value for money"

I stand corrected!

One thing I would say is that if your competitors are charging these prices are you really too cheap? Might be a good time to do a bit of market research and see how your prices compare. You need to be competitive but being too cheap just undervalues the service.

The thing is, Colin's got a reputation for doing a great job at a great price. If he's making a good living (and I don't know whether he is or not) then why change things? If it ain't broke...

Having said that, there is inflation to account for.

Agree with Ross. Better to be known as someone who does a great job and charges reasonable prices than someone who is just cheap. If you are the cheapest, people will refer to you as such when they recommend you. The quality of your work will start to be overshadowed by how cheap you are.

Take a look at your testimonials, you owe yourself more than that.

You did an admirable thing in sticking to your guns, not wanting to rip anyone off, and it shows you're honest and trustworthy.

But as Ross said above, it may be worth looking into what everyone else is charging for similar services. Maybe you could still be competitive at a higher rate.

Pricing has been a learning curve for me. When I started out I kept my design prices very low to supposedly get as much work as possible. I soon realised, through a bit of research, that others (not necessarily better designers) were charging far more, and that cheaper prices were potentially devaluing my work in the customer's eyes.

SO NOW I'M EXTORTIONATE! Just Joking...

But there's always the perceived value of your service, a friend's client recently told them "I chose you because you were the most expensive".

Colin, charge a fair price for the job. That is the best thing to do.

I had an example this week where I knew a client was paying £1,200 for some accounts work. I was able to do the same work for £650. I therefore quoted the price I would charge normally.

Imagine if two of your customers get together and happen to discuss the 'variance' in price that they are being charged. Unlikely I know, but it could tarnish your fantastic reputation.