Small ethical question on bid

[cnc_works]

So, I recently took on a job to cut, do a little internal pocket and finish maybe 280 bamboo blocks out of a 4' x 8' sheet of bamboo ply. Cut, sand all edges, including a small chamfer, to 220, & oil.


Never worked with bamboo before, didn't have an idea how hard it was, so it seems I underestimated the cost of sanding belts and time involved in getting them ready to finish. Probably at least 25% low on my bid. Now I bid close, so there isn't any cream to work with and I'll not make my hourly at all. I'm probably looking at eating $250 worth of time and consumables.


I have every intention of completing the job as bid if I have to, but I just wonder what you guys think about the ethics and practicalities of presenting my issue to the customer and asking for a bump in the bid? How would you present your case? Or would you?

[feinddj]

I stick with my bid. I generally encourage customers to do time and materials. If they want a bid, I bump it up to cover myself. When its done, I bill them the bid price. If I lost money, I tell the customer that they got a deal and the next time it will be higher because_____. I have had customers proffer more money at that point. I have had many customers return to me, and they don't ask for a bid the second time.

David

[steve_g]

What David said...
Chalk it up to education and a valuable lesson.
SG

[gene]

If you are known as a person who keeps his word , what is that worth in the long run....

[myxpykalix]

Donn,
If a customer feels like he's being "bid up" then they will feel like they are being taken advantage of. Wait until you finish this job to explain that you underbid the job and and they got a good deal but that you cannot do the next one for the same price.

By waiting to explain till you have this job done, they will see the results of your work and can more easily justify the increase because they see the quality of what they are going to get.
If you ask for an increase before you do any work they have no idea what they are getting.
Like they say, you're just going to have to "eat it" on this one....
If it's any consolation just use some extra salt to disguise the bitter taste

[kevin]

I've been down that road its hard bidding to the exact time each and every time.I never charged extra on a quote
But how do large contract company get away with cost over runs

[scottp55]

All of the above-Keep your Word- Lessons Learned (but definitely explain to the customer so they understand)

[tri4sale]

But how do large contract company get away with cost over runs

Its all in the contracts. Many companies bid very low to get the job but have clauses in contracts that allow prices to skyrocket, especially when you make minor changes.

[Roy Harding]

I'm in complete agreement with David. Do the work for the agreed price and carry on. But ensure that the customer knows they got a deal, and the next run will be higher.

We've all had to "eat it" a few times - it's just a normal cost of doing business and learning.

[cnc_works]

I appreciate all the feedback. The job is mostly done now and no doubt I will do the job for what I bid. And that would be the first words out of my mouth in any renegotiation (if I decide to see if he would increase my compensation).

It is turning out beautifully and I'm sure he will be more than happy with quality and turnaround.

It's funny, I always provide high quality attention to detail, but the process isn't nearly as much fun when the dollar hand on the clock isn't keeping up with the minute hand.