As a follow up to Reno's comments,
I found that when I began billing lump sum only, these issues dropped dramatically. I prefer to quote projects up front with a fixed price and then if the customer asks about the price of this item or that item, I am free to share my cost with him or her. I don't get into all the costs, it doesn't matter.
I know that my business needs to earn $X.XX per hour worked over cost and the same goes for materials. I even go so far as to remove the price that I pay for an item if the customer says that he or she can get it cheaper elsewhere. But, my overhead stays in.
Why would I do this? Quite simply because I warranty my installation. If something goes wrong and it is my fault, I will replace it - at my cost. Now, this doesn't mean that if the product is faulty, that I warranty the product, that is different - in that case, if the customer supplied it, they can pay for my time to replace it, and again I will charge for my time with the approprate $$$ for Overhead and Profit.
I have done this in both up front fixed bid contracts and in Time and Materials projects, but the key for it to work is a strong up front contract explaining the process, what you are providing and what is expected of the customer. With a good solid description of the work to be performed or in the case of time and materials the work that was performed and the cost to the customer as one lump sum, I rarely run into these types of issues.
No one goes into Mc D's and asks for the cost of the pickles, onions, 2 all beef patties... you get the idea. All they want to know is the price. It is no different for us. But, try to put yourself in a position that the client sees you working with and for them, not someone they need to fight with to ensure that they don't get worked over financially.
Just my opinion.
Glen
[This message has been edited by ExpressQuote (edited 07-02-2006).]
