How to tell customer "NO"

CarbideBob · Aug 30, 2018

A customer who will resell my work under his name.

Sends me a batch of parts with a price from a quote 6+ years old.
"By the way we would like the 4 RMS like you do on others since it runs so much better."

The quote states 16 RMS and price valid for 90 days.
I tell them that it will be twice the price, they have a heart-attack "But we have already quoted and got a PO from the end user."

What kind of place uses a 6 year old supplier quote when pricing a job?
Add on going from 16 to 4 with no charge.

More of a rant than anything but how do you politely and gently handle such?
I feel bad that they have a PO to honor and that my price will swamp it but they were not thinking clearly.
Now they want me to eat some of the loss. ........I'm thinking middle finger.
This was a big and good customer once, in the past few years not so much as they shop my jobs and give my processing steps to others.

I don't want to be a dickhead but I don't want $25 per hour work.
I will do it or lower as "one off favors" but this is not in that realm.
Bob

Milland · Aug 30, 2018

Your title says it all: "No". As you will be fully "en-titled" to say.

4GSR · Aug 30, 2018

I bet it is someone from the oilfield pulling this crap.

DDoug · Aug 30, 2018

"....Dumb looks are still free"

Gordon B. Clarke · Aug 30, 2018

CarbideBob said:
A customer who will resell my work under his name.

Sends me a batch of parts with a price from a quote 6+ years old.
"By the way we would like the 4 RMS like you do on others since it runs so much better."

The quote states 16 RMS and price valid for 90 days.
I tell them that it will be twice the price, they have a heart-attack "But we have already quoted and got a PO from the end user."

What kind of place uses a 6 year old supplier quote when pricing a job?
Add on going from 16 to 4 with no charge.

More of a rant than anything but how do you politely and gently handle such?
I feel bad that they have a PO to honor and that my price will swamp it but they were not thinking clearly.
Now they want me to eat some of the loss. ........I'm thinking middle finger.
This was a big and good customer once, in the past few years not so much as they shop my jobs and give my processing steps to others.

I don't want to be a dickhead but I don't want $25 per hour work.
I will do it or lower as "one off favors" but this is not in that realm.
Bob

1. Don't feel bad. They should have been in touch with you before giving a quote.

2. It's not you that should feel bad, it's them that are trying to screw you. Personally I don't believe them.

3. "... how do you politely and gently handle such?" A polite "Sorry no"

I had a customer a few years ago that asked (by email and foreign) the price on one of my products. I told him. He then asked the price if he bought 25. I gave him a new price. He then wanted to buy 5 at the price per item if 25 were bought at one time and would buy the remaining 20 at a later date.

It's a trick some buyers use. I regard it the same as I would if a Nigerian prince wanted to share millions with me. Customers like that will always only be a problem and he never became a customer.

Bobw · Aug 30, 2018

Is this a new "Hot Shoe" purchasing agent trying to make a name for
himself.. Those are the worst.. They usually don't last long.

I'd just ignore it. And if they pushed, I would just ignore it again..

You already told them double and they freaked.. Screw them...
If they call again TRIPLE it, then no-quote it.

They already tried to screw you, and when you called them on it, they
then want you to take a loss to help them out????

.I'm thinking middle finger.

I agree.

dalmatiangirl61 · Aug 30, 2018

They based price off a 6 year old quote, lol, 6 years ago I could get a decent homemade burger for 5 bucks, its $10+ today. Just say NO.

DDoug · Aug 30, 2018

"....and the horse you rode in on."... :toetap:

Gordon B. Clarke · Aug 30, 2018

dalmatiangirl61 said:
They based price off a 6 year old quote, lol, 6 years ago I could get a decent homemade burger for 5 bucks, its $10+ today. Just say NO.

Way off track but what's a "homemade burger" and where do you "get" them?

hanermo · Aug 30, 2018

You have zero real problems.
All quotes, tools, machines, and parts have functional lifetimes.

You have an excellent new customer opportunity in fact!
They Really Really want to buy some stuff from You .. as their contact indicated .. after some management/ownership/business/product changes they probably had over time.
Now it is up to YOU to make it work - for YOU and in fact both of you. Most real business relationships profit both parties.

Study Your costs and marginal costs very very carefully.
The *worst thing* is a great customer paying well for shiny bling parts of high spec - that You can make - .. that cause you to lose money on the generic production lines.

Approx 99% of customers are quite happy to pay more for bling/high spec parts.
Once they are shown, very carefully, bit by bit, where the extra costs come from.
And offered the opportunity to cut out any of those ops from their parts - with resulting lack of features.

I have had a *lot* of (smart, trusted) customers I showed an itemised bill of costs with a big "stuff" lumped in it.
In a 50$ part, say 10$ for stuff.

When they asked I explained it is for their minor errors, our communications errors, general problems that happen.
And that "stuff" is a fungile cost for me and I will discount it from the price at delivery if it went well.

Some customers, or buyers, will pretend to be hard-asses and say "we wont pay more than unit cost/500 quoted vs 10/quoted at x/unit".
The best result was saying "exellent". I will make 500 units at this price, for delivery over n time, signed and accepted at PO.

Matt@RFR · Aug 30, 2018

Being gentle never works. State the facts, and only the facts in plain English. Here's what I would say:

Matt to dumb customer said:
Material, labor, operating costs and shipping costs have all increased since that quote was given, and you are asking for additional time consuming process(es) to be performed that were not included in your quote. The quote you referenced states that prices are good for 90 days. That quote is now 2190 days old and will not be honored.

Done. No hand holding, but no poking them in the ribs either. Facts, baby, facts.

Gordon B. Clarke · Aug 30, 2018

hanermo said:
You have zero real problems.
All quotes, tools, machines, and parts have functional lifetimes.

You have an excellent new customer opportunity in fact!
They Really Really want to buy some stuff from You .. as their contact indicated .. after some management/ownership/business/product changes they probably had over time.
Now it is up to YOU to make it work - for YOU and in fact both of you. Most real business relationships profit both parties.

Study Your costs and marginal costs very very carefully.
The *worst thing* is a great customer paying well for shiny bling parts of high spec - that You can make - .. that cause you to lose money on the generic production lines.

Approx 99% of customers are quite happy to pay more for bling/high spec parts.
Once they are shown, very carefully, bit by bit, where the extra costs come from.
And offered the opportunity to cut out any of those ops from their parts - with resulting lack of features.

I have had a *lot* of (smart, trusted) customers I showed an itemised bill of costs with a big "stuff" lumped in it.
In a 50$ part, say 10$ for stuff.

When they asked I explained it is for their minor errors, our communications errors, general problems that happen.
And that "stuff" is a fungile cost for me and I will discount it from the price at delivery if it went well.

Some customers, or buyers, will pretend to be hard-asses and say "we wont pay more than unit cost/500 quoted vs 10/quoted at x/unit".
The best result was saying "exellent". I will make 500 units at this price, for delivery over n time, signed and accepted at PO.

This was a big and good customer once, in the past few years not so much as they shop my jobs and give my processing steps to others.

I'm assuming you did notice that sentence in the OP.

paul39 · Aug 30, 2018

Carbide Bob,

The answer: "Sorry, I can't afford to do that. You might try some of your other suppliers."

Paul

Mcgyver · Aug 30, 2018

CarbideBob said:
I don't want to be a dickhead but

Not being a putz, is not being a dickhead.

They are in greasy way (taking advantage of your good nature) trying you on for size. You don't have to be rude, but you do have to tell them sorry, I can't do that. Every quote I do has a duration, good for 30 days. Come back after that and if all things are equal I'm not going to gouge and will probably honour it, but six years and a different finish? Come on, they are the ones being dickheads

Then ask for a substantial deposit with the order.

G-Auto · Aug 30, 2018

CarbideBob said:
A customer who will resell my work under his name.

Sends me a batch of parts with a price from a quote 6+ years old.
"By the way we would like the 4 RMS like you do on others since it runs so much better."

The quote states 16 RMS and price valid for 90 days.
I tell them that it will be twice the price, they have a heart-attack "But we have already quoted and got a PO from the end user."

What kind of place uses a 6 year old supplier quote when pricing a job?
Add on going from 16 to 4 with no charge.

More of a rant than anything but how do you politely and gently handle such?
I feel bad that they have a PO to honor and that my price will swamp it but they were not thinking clearly.
Now they want me to eat some of the loss. ........I'm thinking middle finger.
This was a big and good customer once, in the past few years not so much as they shop my jobs and give my processing steps to others.

I don't want to be a dickhead but I don't want $25 per hour work.
I will do it or lower as "one off favors" but this is not in that realm.
Bob

Mr. Customer, I appreciate you reaching out to us to quote this part. We have looked at our quote from 6 years ago and have been able to hold our original price as long as the order quantity is 2X and the part is unchanged.

Lowering the surface finish from 16 to 4 RMS requires additional processing and increases in scrap rate. We would be happy to provide this new more complicated part at 2x the 6 year old quote price without the ordering quantities changing.

We value your business very much and look forward to the PO so we can get started!

michiganbuck · Aug 30, 2018

You dick head what are you talking about are you crazy or stupid..Or.. I'm very sorry buy that is a 6 year old price and today's price is $XXX

Mud · Aug 30, 2018

I feel bad that they have a PO to honor

This too can be overcome.

Now they want me to eat some of the loss. ........I'm thinking middle finger.

Ah, you're doing better so quickly, Atta boy.

Eating the loss - I helped a sizeable gear maker near me that couldn't put a keyway in a small pinion aligned correctly enough to pass customer's inspection. We did it on a handful of parts, customer liked it. I showed them how I did it in a turning center, sent them information and ordering info on the tools I used and explained how to do it. Gearmaker owner called me and asked me to do a hundred for way less than it would cost me. I said no thanks. He replied that they were cultivating this new customer and was in so many words asking me to "Take one for the team" so that we both could get all this potential work, me doing the part he couldn't do. He even told me I was paying my people too much if I couldn't make money at the rate he wanted to pay. Guess what I said.

This was not an established customer. In fact, I had them make parts for me before I had gear machinery and they shipped me a lot of scrap, This was 5+ years later out of the blue. Some people will ask you for anything.

thermite · Aug 30, 2018

CarbideBob said:
A customer who will resell my work under his name.

Sends me a batch of parts with a price from a quote 6+ years old.
"By the way we would like the 4 RMS like you do on others since it runs so much better."

The quote states 16 RMS and price valid for 90 days.
I tell them that it will be twice the price, they have a heart-attack "But we have already quoted and got a PO from the end user."

What kind of place uses a 6 year old supplier quote when pricing a job?
Add on going from 16 to 4 with no charge.

More of a rant than anything but how do you politely and gently handle such?
I feel bad that they have a PO to honor and that my price will swamp it but they were not thinking clearly.
Now they want me to eat some of the loss. ........I'm thinking middle finger.
This was a big and good customer once, in the past few years not so much as they shop my jobs and give my processing steps to others.

I don't want to be a dickhead but I don't want $25 per hour work.
I will do it or lower as "one off favors" but this is not in that realm.
Bob

Founder and Chairman, W. Bell & Company, called over by the best of his many store managers with a loud and rudely insistent customer, Rockville HQ and store.

Customer has purchased a tablecloth. Lace. Machine-made at the price-point, not hand-done by elderly Irish ladies in tiny cottages.

He doesn't LIKE it! A 100% refund is not GOOD enough. He wants to mind-f**k the highest available authority. With an audience.

Bad move, multi-generation MERCHANT prince:

Walter:

Sir, what is your occupation?

Loudmouth:

I'm a PLUMBER! What the fuck does that have to do with tablecloths?

Walter:

Mr. Kelly? Give this asshole back his money. Throw him out of MY store. See that he is never allowed back in.

What the F**k would a "plumber" know about fine linens?

Walter didn't do that often.

But he never forgot all those years of hard work from operating out of an attic to $150 million a year, 18 store chain HAD earned him the right and privilege when it was the right thing to do.

"Go thou and do likewise."

You don't ship THIS "plumber" any goods AT ALL at ANY price or on ANY terms, ever again.

Six YEAR out-of-date quote and not so much as an email or phone call?
Can't be much VOLUME in his biz anyway.

Now he's gone and shot both of his own feet off at the knees. He is blaming you for it already.

He'll do it again and blame YOU for it next time as well!

You really NEED that sort of s**t in your environment?

Just poll PM members for the addresses of our ex-wives! Those gals will fix you right up with all the grief you can eat!

SND · Aug 30, 2018

I'd just quote at a 2018 price with the specification changes, and probably require for a deposit or COD in case they decide they'll pay zero for them...
If they don't want that and won't change the PO, I guess its someone else's problem to make them and deal with their end user then eh.
No reason for you to pay for their screw up, I'm all for helping some people/companies, but this doesn't sound like the type of customer that would do much to help you if the tables were reversed.

thermite · Aug 30, 2018

SND said:
I'd just quote at a 2018 price with the specification changes, and probably require for a deposit or COD in case they decide they'll pay zero for them...
If they don't want that and won't change the PO, I guess its someone else's problem to make them and deal with their end user then eh.
No reason for you to pay for their screw up, I'm all for helping some people/companies, but this doesn't sound like the type of customer that would do much to help you if the tables were reversed.

"Tables reversed" is how I'd class what the greedy fool has ALREADY tried to do! "Quote" just gives him ammunition for blame-game. Six YEAR out-of-date prices. Not six-MONTHS. That, one might finesse.

Fecks sake.. you can find "troublesome" on any street corner.

No need to apply "customer retention" skills to a wanabee parasite with an "entitlement" complex... bent on eating YOUR lunch at no real effort or risk on his own hook.

If he is actually "salvageable"?

Quote him the six-year back price, itemized, as one line-item component on a BOM.
Add another line-item. The fee for the rental of a "time machine".
Not "severable" items, either. Sold as an "assembly". Or no deal!

Oxygen thieves... No WONDER we have a problem with Glow-ball worming.

2CW

How to tell customer "NO"

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