Mailing Quotes vs. "On-The Spot" Bids???

[fireandrain 39]

Traditionally, I've usually been able to put together a quote "at the job site" on the day of my bid appt. with the prospective client. After listening to the expectations of the homeowner and discussing the options, I tell the HO that I'm going to pull measurements, run some calculations, and will knock on the door when their quote is prepared and ready to be reviewed. I end up getting about 90% of the bids I put out there, and usually get approval that day, on the front porch after reviewing the quote with the homeowner.

Well, this year I have begun to put together a more comprehensive, custom, typed-up bid approach. The way I see it, informing the customer (after a in-person project evaluation) that you will be taking some pictures of the project, pulling measurements, and will put together a project proposal back at your office and either dropping it off in the next 2 days or mailing it in the next 24hrs. has a few distinct advantages over the "same day, on-the-spot" quote... They are:

1. By taking pictures and bringing your measurements,etc home with you (or "back to your office") you are able to 'step away' from the site and evaluate in the peace and relatively objective environment of your personal space. I.e, 'on your turf' so to speak.

2. You are able to TYPE-UP a custom quote rather than scribble something down for the homeowner day of your first mtg. I don't know about you, but I think that I am able to be far more articulate and thorough when I am not rushed to put together the quote at the jobsite, 'same day'.

3. Appearance of professionalism. I think that many clients, perhaps especially the more affluent professional ilk, truly appreciate it when a contractor appears 'detail-oriented' enough to want to spend the proper time preparing their quote. Even if that means they have to wait a day or two! I should add that I think its CRITICAL to follow through with your promise to deliver the quote in a day or two. You dont want it to backfire on you and come out looking like a deck co. too busy to take your needs seriously.

4. And this one may be the kicker in my opinion! This approach BUYS YOU MORE TIME IN YOUR SCHEDULING! I always shoot to get new clients booked within 2 weeks of rendering the project quote. When you hand over a quote the same day you look at the job, the next question after accepting your proposal is usually "When can you do it?" I hate telling prospectives that "We're booked for the next 3 weeks"...That can sometimes make or break a job, esp. if the client is in a big hurry to get things done. By allowing that extra couple of days 'in the office' preparing a thorough job quote, you in essence are buying yourself an extra day or two of wiggle room in your calendar. If you consider a volume of,say, 15 bids a week, this can really help you keep on top of your current schedule and not get overextended in any way. I always propose the "next available service appt." on all of my bids, in writing. I add that my co. is "only able to reserve this date for 48hrs. after the quote is rendered..."

WOW! And I thought this would be a quick thread! Anyways, these are just a few of my thoughts on the contraversy over mailing clients bids OR delivering same day quotes. Pros and Cons,etc.... I'd love to know what % of us subscribe to one or the other approach! And Why!

Beth, could this b a poll?

[Beth n Rod 1,279]

It sure can be. All you have to do is start a new thread, and in the thread there will be an option to post a poll. Once you check that ans submit it, the next page brings up the place to fill in poll options. You can't add it to an existing thread. BUT...I can merge this into the poll once you create it. :)

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Beth

[RPetry 564]

Matt,

Excellent post. We have been doing estimates in the way you describe for several years now.

Many customers are curious of a price at the time of meeting. As I always take measurements, it does not take long to give them a "ballpark" figure. This is always followed up with a written estimate/contract within 2 days.

A customized estimate, with your company logo, address, job description, materials list, etc. not only looks professional, it is professional. Very easy to setup on any word processor as a template, and is of benefit to you in accounting and operations standards.

We always include a cover letter, and usually pictures of similar jobs, before, prepped, and finished photos.

The best saved for last. 90% of the time, the bid package is emailed. No printing, postage, need to find a mailbox. Fast, efficient, and customers are impressed.

Not sure if this approach helps much in scheduling. At the moment our next available opening is 7 weeks out, and at that I reserve a 7 day window for a projected start date. With weather and wood here in the Northeast, just cannot nail it down finer than that.

[5 Star Johnny 14]

Over the years I had kicked around doing on site pricing, but never felt it would be as productive. I spend, on average, 45 minutes with a residential prospect. I like to spend that face to face selling and educating the prospect. This is something my competition does not do, and gives me and edge when decision time comes. Detailed notes are always taken for reference.

Aside from a more professional appearance when you send a formal bid, it allows me to incorporate more detail. Truth be told, I have a basic letter (proposal) for each service type, and it is personalized for that particular prospect. It allows me to re-detail the points I made at the site (specific process), and incorporate points that affect pricing (elevated deck, foliage obstruction, steep grading, etc.). I also include at least 5 - 6 local area residents we have as current clients for referral, and encourage them to call. I indicate I will phone them within a few days to follow up, and always do so. If our proposal is accepted, contracts are mailed and we provide a stamped envelope for them to return a contract copy & their 15% deposit.

In sales theory, on site bids should give you a higher closing ratio if you ask for the sale and have strong closing techniques. My professional background & education is in sales & marketing, and my logic tells me this should work. However, it just doesn't seem the proper method for us, and our current process works. The most important element to our higher closing ratios is the face to face selling & education process while on site. Works for us.

Closing ratios:

Face to face; no competitive bid - 78%

Face to face; competitive bids - 55% - 60% (our pricing is always higher)

No face to face - 25%

Your market will dictate what may possibly work in terms of sales & marketing techniques. Know what your strengths are and accentuate those. Know what your competition is doing, and differentiate. Hope that helps.

[fireandrain 39]

Great contributions guys!

[PressurePros 248]

I used to take measurements and then do a bid and request to meet with the homeowner. It worked well when I first started in residential. Now I do on the spot bids. If the customer won't meet me, I won't bid the project, its a waste of time. I do estimates Saturday and Sunday to make it convenient for homeowners.