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Wow! I had a run in (did tree service for)with a lawyer a while ago. His ego wasn't nearly as close as your customer's.
Long story short: At the end of the first day of a 2 day long job, I told him I made a mistake and underbid myself. I simply did not know how much dead wood was in his, 4, never been pruned, Ash trees. I needed $300 dollars extra to finish. I explained my mistake and he concurred to for me to finish at the increase price.
(BTW. I have only approached a customer a hand full of times in a situation like this. I usually just suck up the loss and move on)
Anyway, he tried to coerce me to pay him back! About one week after the job I got a threatening e-mail from him. He demanded a time frame of when I was to pay him back.
I scheduled a time to go over to his home to talk to him. I placed my PDA in my coat pocket and recorded our conversation. I was quite comical. He was getting all worked up, but in the end he finally realized that he agreed to pay me the extra amount to finish the job.
He had nothing on me and he knew it from the beginning.
Mechanics always increase their prices when they find that they are getting into more work than necessary. They will communicate to the customer first before proceeding. So, I thought I would try the same.
Man, if I could predict the future, I'd be in a different line of business!
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This one.