How do you respond to "how much did you pay..."

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Forum -> Relationships -> Manners & Etiquette

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amother

Fri, Nov 17 2023, 10:31 am

I work for a kids Sunday program and one of my jobs is to secure vendors and hire staff. We're on a tight budget so we're always looking for ways to cut spending. I shop things around and sometimes we will have used a specific vendor for a few years and then we want to try to find someone new.

Here's an example of what often happens-
We were using someone to take videos every week and at the end of the program they made us a promotional video of the whole session. They did a beautiful job but we wanted to pay less. So I contacted someone who does this kind of thing and they asked me to explain all the details of what we're looking for and asked a lot of questions. When I asked them how much they would charge for this kind of thing, they threw the question right back at me, asking me how much we had paid in the past. The thing is I didn't want them to know how much we paid. I wanted to hear what THEY charged so we could compare prices, even if they needed time to crunch the numbers. I ended up telling them what we paid but I threw in there that we'd like to pay less than that. They came back with a price that was slightly lower but not by much. I was left wondering-- if I hadn't told them, would they have charged even less? Maybe they would have charged more but at that point I wouldn't have minded telling them what we paid in the past because I would have nothing to lose. In this case, I'll never know. Maybe they're laughing all the way to the bank because they were going to ask for a lot less than that.

Another example.
We were looking for a new venue for the program because the manager felt we're overpaying. But when I spoke to a new place, they asked me how much we paid in the past before naming a price.

So my question is how do I answer this? I don't want to lie and name a lower price. I can't say I don't know because they know I know and when I tried saying I wasn't sure, they told me to get back to them when I find out. Do I tell them it's confidential information? It's complicated?

Shouldn't they be quoting ME a price?

If this happened to you, how did you respond tactfully without giving away what you paid?

Rachel Shira

Fri, Nov 17 2023, 10:33 am

Seems weird. Don’t these places have a pricing structure of their own?
Sorry I’m no help. 😀 I don’t know how I’d respond either. Maybe just say “I’m just wondering what your regular pricing is, thanks.”

amother

Valerian

Fri, Nov 17 2023, 10:41 am

Yes !
Insurance did the same thing when I called them. I said "I can't tell you how much I paid until now. I want you to give me the best price you can give me!"

And if you don't like what they answer say: "oh that's not a good price it's the more than we're paying now or it's only slightly less that I'm paying...."
It's really hard to get out of it but I really don't think it's nice of them to ask.

amother

Fri, Nov 17 2023, 10:43 am

Rachel Shira wrote:

I actually did say something along those lines in the promotional video example and was told something like "every job we do has different requirements so there's no one size fits all pricing so it will help me to know what you paid... yada yada yada"

amother

Quince

Fri, Nov 17 2023, 10:43 am

Im part of a selling group for luxury items and they do the same thing, its common tactic so you can get the best price. Instead of giving your quote, you ask "whats your budget?" If its higher than what you would have charged, great. If its less than you can decide to negotiate, give the lower price or move on.

Its not a practice thats very nice, and its meant to take advantage.

In the future, hold firm. Say "im very interested in using your services but I need a quote to make a decision. I will not disclose any information until you give me your rate, thank you"

If they push, just keep repeating it. Anywhere you call has their set rates they just dont want to give it until they know what you are willing to pay. But you dont have to tell them and can stand your ground. You are in the better position, since you are the one with the money and they are the ones who want the job.

mushkamothers

Fri, Nov 17 2023, 10:49 am

"How much did you pay?"

Well I'm actually shopping around right now to get a better rate. If you can give me a quote then I'll know if I want to give my business to you.

"It would help if I know what you paid, every job is different "

I understand. I'm asking for your rates right now. I am looking for a new place to give my business to.

"It helps if I have an idea of what you expect based on what you paid before"

Right now I'm just calling to get your quote. Are you able to give me a quote or shall I contact another establishment?

amother

Fri, Nov 17 2023, 10:52 am

amother Quince wrote:

Thank you for that info, that makes a lot of sense. Good to know. I guess I need to learn some more business tactics myself so we are on equal footing

amother

Fri, Nov 17 2023, 10:54 am

mushkamothers wrote:

Kind of like when my kids keep asking over and over to get another drink after bedtime..... I need to apply those mothering skills!!

amother

Fri, Nov 17 2023, 10:56 am

Thanks for all the responses so far, it's really helping!

amother

Phlox

Tue, Nov 28 2023, 6:58 pm

My husband is a salesman , and he taught me one thing that you never do when negotiating. You never bid against yourself. What that means is, you don't give them any information about how much you paid last. You ask them. He taught me not to bid against myself when I'm asking my boss for a raise. If I give them a number and it turns out to be less than what they were planning to give me, I've lost out.

seeker

Tue, Nov 28 2023, 9:24 pm

amother Phlox wrote:

Along the same lines, it's commonly said that in negotiations the first person to name a number generally loses. You want to preemptively get the other person to state their number first, and then you try to negotiate to move them toward your side. Don't be the first to show your cards.

Of course they're thinking the same thing so this can't be easier said than done.

amother

IndianRed

Tue, Nov 28 2023, 9:29 pm

Also when they say every job is different, you can say I'm laying out exactly what my needs are, can you give me a range?
What I paid someone else is irrelevant, I am looking for other options.

amother

Oak

Wed, Nov 29 2023, 10:56 am

How much are you looking to cut back? make your cheshbon & then reduce it & tell them that. For example you previously paid $4,000, but you looking to save $1,000, so tell them I am looking for a price around $2,000, and let them get back to you to negotiate.

amother

Aqua

Wed, Nov 29 2023, 11:51 am

amother Oak wrote:

I don't see how doing this is beneficial to OP

amother

Cognac

Wed, Nov 29 2023, 11:54 am

I’d respond by going to a different vendor. If you can’t give me a quote by yourself then you shouldn’t be in business.

Im trying to imagine dh demanding customers tell him what they’ve paid before giving them an estimate. What nonsense. His rate is his rate, and his quotes reflect that.

amother

Gold

Wed, Nov 29 2023, 11:58 am

Say it’s not relevant

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