I'm guessing if your prospect would have come back to you with requests to massage some prices here and there, I'm inclined to think you might entertain them especially if they know the material & services well as you say. If you would not "sharpen your pencil," then so be it.
The method of offering options is just using the "sharpened pencil" ahead of any requests to do so. There is also a perceived notion in a buyer that they are getting a good price against higher or lower priced items whether any value is real or not.
I've learned a large part of salesmanship and winning bids is to provide options and solutions to address needs. My earlier post is just one method of what works, sometimes.
THERE WERE NO OPTIONS TO TIER IN THIS PROJECT!
What part of my posts did you not read about them calling and talking with us multiple times after receiving the quotes and saying that the pricing was very fair and well within their budget expectations and plans?
Or the same conversations with them asking us about scheduling and timelines for each portion of the first phase of the project?
Unless they were lying the whole time during those subsequent conversations, they didn't reject our quotes based on pricing UNLESS someone came in at the 11th hour and blew the floor out of the deal during that holiday week period when we didn't have any contact with them.
The tiered method isn't "sharpening the pencil", its offering a range of options with scaled expectations on materials, durability, complexity, options, etc..
"Sharpening one's pencil" is coming back and offering the SAME product at a lower cost out of fear of losing the project. The proverbial "would you rather have 90% of something or 100% of nothing" equation that has helped drag our craft down as much as any single factor i can think of. Gee, where and how many thousands of times have we all heard that one from the mediocre signmaking crowd in our lifetimes as they scurry to grovel for whatever they can get from a client and then gouge the next unsuspecting sucker to make up for the losses on the projects they "sharpened their pencils" for?
I just had a potential customer call an hour ago and ask us to see how we can lower the cost of an upcoming project to better fit their budget constraints. The job calls for a big cutout logo panel, some 16" tall stud mounted dimensional letters and window graphics. They have two big picture windows we're putting 52"x52" circular logos on and a frosted bar along the bottom of the windows with words cut out of it.
Did I just "sharpen my pencil" and lower the price for the same thing out of fear of losing the job?
No, I've developed a rapport with these folks and want to see them get the best signs they can afford through us. We dropped the size of the dimensional letters a couple inches in height and will make them in house out of 1/2" white PVC instead of buying 1/2" acrylic letters through Gemini, scaled down the window logos a bit and recalculated our install time to reflect the time savings doing those elements a little smaller.