I made a mistake! I need to tell her! But, will I become unethical & unprofessional? :-( ?

Question

A client comes to my shop and orders to have a custom-made outfit done for her. She shows me her sketch of the design she wants. The design had a style that I rarely get to work on, but I decided to accept the challenge and agreed to make the outfit for her.

She asks me how much she'll be paying for the outfit. I did some calculating in my mind, and finally blurted out the price cost of the outfit.

She finally agreed on the price after a failed attempt to persuade me to lower it. Then, she left after we discussed the schedules of her fittings.

As I began purchasing the materials and started working on her outfit, I observed the huge amount of time and effort used in the process; and found out that I had undervalued the actual cost of the needed materials! I realized I made some miscalculations and made a mistake with the price I came up with. It turns out that the actual cost of the outfit is a lot more than the original price I gave her!

What is the ethical thing to do????

Answer 1

You quoted her a price and she accepted said price. You are going to have to stick to this price and eat the difference. Sorry, the ethical thing to do is not change your price and stick to the amount you quoted. Next time you will know to go higher than your actual figure and then if it comes out really far under the budgeted amount you could let the person know they got a lower amount. i.e. you think it might cost $550, you charge $950 and then it costs $450 and you charge her $750.

Answer 2

Well, first off I have done this, too. Stick with your price---- this time. Don't let your frustration come out in the clothes. Take the challenge as a chance to be creative and make something you normally wouldn't. You know you'd be proud of the job in the end and the whole thing won't be screwed up. You might get other customers from it.

About the client---- Don't let the client know about the added expense until you know that she loves the item as much as you do. She may see how much work and expense was involved and give you more than the quote, because she loves it. ( This has happened to me, also.) You may get to avoid any bad feelings on either side.

From the description of her low-balling your quote, she might not be so appreciative. I guess then, let her know this was a real learning experience for you. That your material costs an hours on the garment cost you far more money than you thought. If that doesn't loosen her pursestrings, you haven't lost a good client. You probably won't enjoy sewing for her. I haven't had to do that, but felt the same anxiety you are probably feeling know.

I know for a while I was often confused about what to charge and it almost made not want to sew for anyone but friends. Then I decided my new policy would be--- they pay for material costs (wheter they buy the fabric or I do) then a flat labor fee for an approximated hours of work. I still go go over the time sometime, but it is usually less, but never get stuck on the material.

I know you're in a hard spot, but basically stick with the price-----Hopefully, things will work out. If not, it 's a lesson learned the hard way.

Answer 3

If the price is not in writing then it probably can be modified. The key to doing this is in the manner in which you present the price change to your customer. You will want to present the increase cost of the materials as the main reason for the desire to renegotiate the cost of the project. However, you would only want to do this if the cost of the items is so much more than you originally estimated that it could cost you a significant portion of your funds. If she appears hostile to a price change do it at the agreed price. In the future create a written estimate and place a disclamer on the form that the final price can change but that you will consult with the customer before making a price change or continuing with a project. Car repairs are an example of this.

Answer 4

The most ethical thing is to complete the work as agreed and take the loss. This is one of those learning experiences in business that are really something we have to learn the hard way. Just be thankful that you did not agree to the lower price that you were asked to agree to, it could be worse. You should never quote a price to a client under pressure, and should make it your policy from now on that you will do some research into the project and then get back to them with a price. If you attempt to explain what happened, she will likely walk away, and you will end up making nothing on the project. Trying to up the price now is totally wrong, it is your fault that you misquoted the final cost to the client. Sometimes it is the most difficult lessons that teach us the most. Good luck.

Answer 5

You can approach the lady and state that you miscalculated the price, showing her the calculations.

You can ask her if she is willing to pay the proper price (at least the basic materials costs). She may be a fair minded person and accept.

If not, you can either: 1. do the job anyway
or 2. calculate whether the losses are worth the experience/ client gain etc.

I once employed a decorator whose estimates were significantly too low. I did not mind paying more as he was a decent person and while I like a bargain, I do not like the idea of people being underpayed for their work.

But she is unlikely to accept given that she already tried to bring down the price.

Answer 6

You already have a contract, even though it's only verbal. There was an offer and an acceptance. The only way out of it is to back out of the job entirely, but then you'll be out all of the time and money you've already invested.

It's a valuable lesson. Estimating business costs is a very important part of being successful in small (or large) business. You need to get better at it. Maybe make up some estimating sheets for yourself, with the costs of the various materials, etc, that you can update on a regular basis.

BTW, business people do sometimes underestimate a job - all kinds of business people. It's a live and learn thing.

Answer 7

Take this as a lesson learned. You said yourself that this is a type of project you don't work with very often....so, now you know. You need to stick with the original price as agreed. If you don't, and try to raise the price, she will (legitimately) be upset with you. If she loves the outfit (which I hope she does), then tell her that you are glad, and that any future outfits to that specification will cost more....and explain why. Be sure to emphasize that you will only accept the amount agreed upon because it wouldn't be fair to her to jack the price and you hope she will return to your business.

Answer 8

The pricing you gave her was just a quote...right? If it was a quote and nothing on paper then you should be able to redo the pricing, but if you told her that would be the price then that is what she should have to pay...hope all goes well. Verbage is everything, remember that when working with people.

Answer 9

Sorry dude. That's what happens when you quote a price without doing the calculations first. You now have a verbal agreement, and you are legally bound.
Let this be a lesson to you for future reference.

Answer 10

I believe that you should explain to her just as you have explained the matter here. You deserve to be repaid fairly for your expenses and your talent and time. You would not be in the wrong to refuse to deliver the outfit unless you can come to an agreement on the price.

It appears that you have told the truth in your story here, so to indicate the needed change is not unethical or unprofessional. I am glad to hear that you are even concerned about the morality of the matter, when some do not care very much about that.