Can You Negotiate on Price for Your Parking Lot Striping Services?

When you put your project out to bid and receive the quote, is that the final price? Maybe. Let’s discuss discounts and negotiations in the asphalt and pavement marking world.

Everything’s Negotiable!

There’s an old saying that “Everything’s negotiable”. I’ve found that to be mostly true. And, that can be the case in the pavement marking space as well.

But, not always.

It depends!

Is a Discount Really Needed?

First, before we get into how you might approach getting a discount or some sort of allowances in a friendly negotiation, please ask yourself if the discount requested or allowances are actually needed or is it just a matter of principle or sport to ask for a discount?

I moved to the northeast many years ago and found haggling for price a little more common here than my midwest upbringing. Certain cultures also just assume negotiations are expected as well. There may well be parts of the country that my suggestions below simply won’t work all that well.

But, let’s assume you are under orders from the higher ups to strike a better deal to meet a budget. Here’s how that might play out.

If you’re dealing with a small $600 project, for example, your negotiating power is pretty limited, if any exists at all. Start moving on up in price and you can start to find wiggle room.

Is there more room at $5K over $600 for some wiggle room? Yes.

$20K? Even more.

$100K? Absolutely.

One caveat – Some professional pavement marking contractors might take offense to a push for any sort of discount. They’ll let you know one way or the other.

Let’s say you’ve got three bids. Two are relatively close to each other and the third is quite a bit less. As I alluded to in a previous blog, there might be some reasons that do not necessarily benefit you that allow the lower price (lower quality, poor service, unskilled tradesman, outdated equipment, etc.). Still, you can make mention of the lower quote and see what the response is.

If one contractor jumps quickly at matching that price, I, personally, would view that in a negative light. Were they just fishing to see if you’d bite? As a matter of principle, I’d much rather have a contractor stick to their guns and justify the price difference. It tells me they believe in their bid, they believe in their workmanship, and they believe in themselves.

But, there’s still a good chance you can sweeten the terms to help you get within budget. Be upfront. Tell them what your budget is. Perhaps there are some extras that can be whittled down. Or, since cash flow is a chronic problem in the industry, offer a deposit (or a slightly bigger deposit if one is already asked for) along with quicker payment terms. That should get their attention.

I also think it’s how the parties approach negotiations that can make a difference. Rather than demanding a certain discount, perhaps use language like “Can you sharpen your pencil any?”. Or, “I’ve got three bids. Yours is the highest, but I really wish to work with you. Any wiggle room at all here? Can you split the difference in price, perhaps?”.

We once lost a roughly $20,000 bid over a $20 price difference. Would we have matched that price if asked? Of course. That one still hurts!

Final Thoughts

The professional contractors you are dealing with have employees to pay, insurance costs, office costs, fleet costs, and families to feed. None of us, no matter what we do for a living, would enjoy others always trying to beat us up on our pay. There’s a very fine line in negotiations that, when maneuvered properly, can produce a win for both parties.

Salute!