Estimates - how do you handle them?

[Beth n Rod 1,279]

With gas prices on the rise, we were wondering if the legendary "free estimate" is going to become a thing of the past...or at least change...please share your thoughts, and vote in the poll below.

Thanks!

[Applied Pressure Cleaning 14]

The big problem that i am having right now is that i am getting a few calls but everyone wants me to give an estimate over the phone. I spoke to another company in my area and he said the same thing. Does this happen alot to everyone else and if so what approach do you take on handling it. I have called other pw companys in the newspaper that give out estimates of $130 firm for a 3 bed 2 bath home and they clean the driveway and sidewalks for free. Is this a crock of s*%t or what? Do i tell people that they get what they pay for? or do i grab these knuckleheads and kick the tar out of them? Sorry for the hostility but i have to make a living, and can't do it when people are lowballing in high scale neiborhoods. Just my 2 cents. I hope that someone can give me the solution to this!

[Beth n Rod 1,279]

Phone estimates are....well, I'll say this, you might lose your shirt that way. We have a couple of companies here doing it, and the catch is, they remeasure when they do the work anyway and leave a bill for the difference! They don't tell the homeowner. Can you imagine what comes next?

Beth

[PWkid 79]

I do alot of phone estimates but I have an awesome resource I can look up the addy on our county website it shows me a picture,layout and sq ft,if its a huge house on the beach I will take a look at it but for the most part I have never been burned I have underestimated a few times but for the money I'm saving driving around giving estimates I feel its worth it.

[EmpirePW 14]

First let me state that residential work is not usually what I do so when someone calls me with a residential job I make them describe their homes to me (# of stories, dimensions of the sides, garages, etc) and I give them a quote over the phone. I don't make it too cheap and I also stress the fact that I am liscensed/insured/bonded with experience and references and a whole bunch of other good stuff. I would say I sell 90% of the jobs that call me for a quote without seeing the houses since most these jobs were referred to me by someone I had done work for (I run a referral reward program with clients.) Any commercial or industrial jobs I go out meet the people in charge and visit the site before giving an estimate. These jobs turn into regular customers that need constant cleaning though and are much more lucrative to me than residential work. So for houses over the phone everything else I will always give a free estimate.

[Celeste 341]

With gas prices where they are now, we have started giving our minimum fee before encouraging the homeowner to let us come take a look. We'll ask what's on the house, how many stories, etc... If they weren't willing to spend the minimum, clearly they're looking for one of those $99 for everything deals and we haven't wasted our gas on a price shopper.

[Larry Chestney 14]

I give free estimates and don't close a lot of them. Mainly because I am not the cheap company. I pride myself in a prefessional job and aprofessional price. ia m in business to make money. I have a prfessional pw rig and it cost money to operate a business. However, we have a lots and lots of of price cutters that love to work for nothing, I can't seem to match that.

[Larry Chestney 14]

I give free estimates and don't close a lot of them. Mainly because I am not the cheap company. I pride myself in a professional job and a professional price. I am in business to make money. I have a professional pw rig and it cost money to operate a business. However, we have a lots and lots of of price cutters that love to work for nothing, I can't seem to match that.

[Mike Williamson 198]

I give free estimates and don't close a lot of them. Mainly because I am not the cheap company. I pride myself in a professional job and a professional price. I am in business to make money. I have a professional pw rig and it cost money to operate a business. However, we have a lots and lots of of price cutters that love to work for nothing, I can't seem to match that.

That all works great, as long as you have enough calls to keep busy with the jobs that you ARE closing...if not, you either need to take steps to increase your calls, or drop your prices a bit. Funny how a few bucks ($10.00-25.00 or so) will sway a customer one way or the other.

[JeffW 14]

I give free estimates because I need customers more than they need me.That is just part of this type of business.

[Mike Williamson 198]

I give free estimates because I need customers more than they need me.That is just part of this type of business.

Amen! Some contractors don't seem to get that...As if we're doing a huge favor for the customer by showing up with our new shiny rig and washing the mold off their house....

Yes, it does take a certain amount of income to operate a company profitably, but that number is different for every company.

[Jeff 232]

I give free estimates. I cant imagine telling a customer on the phone there will be a estimate fee, when they know than can call anyone else and the estimates are free. Are there any trades that charge for estimates?

I prefer that the customer be there, so I can explain to them the process and upsell. It easy to tell them a house wash price, but easier to explain and point out to them the other surfaces around their house that need cleaning if they are there. Now a customer doesnt have to be there, but I prefer thay are.

Theres 2 nieghborhoods I will give phone estimates to. But I know all the houses are basically the same and they are small houses and to save time & gas I give them a range. I'll also ask them if they need there driveway or roof done. Then I will go to the house

If the estimate is say more than a half hour away, I'll ask them the sq footage of the house , if its under 2000sq ft, Ive passed and told them its out of my service area. Thats because im to busy and its just not really worth it

As for commercial work, usually I just get a call for a proposal and go do it without anyone there. but this is from Prop managers I deal with regularly. If its a new comm customer I try to get them to come out and show me. With commercial I always give a detailed proposal , list of some past project, list of references & insur cert and lic. This helps in closing a deal. I know alot of PW contractor who just give a price and thats it. Ive had several prop managers say they like the detailed proposals and the other paper work its easier sell to the HOA's

[seymore 90]

Are there any trades that charge for estimates?

I know A/C companies that have a $35 charge that they will take it off of your bill if they perform the service.

[Beth n Rod 1,279]

Anyone doing as Seymore suggested?

Beth

[Littlefield 65]

I charge for estimates. Its part of my fixed overhead, which means everyone gets to help defray the cost. I plan one at least one day a week to do estimates and other "support" functions in my business. Figuring only working 4 or even 3 days a week in the winter helps me adjust my pricing accordingly.

[Mike Williamson 198]

I charge for estimates. Its part of my fixed overhead, which means everyone gets to help defray the cost. I plan one at least one day a week to do estimates and other "support" functions in my business. Figuring only working 4 or even 3 days a week in the winter helps me adjust my pricing accordingly.

How do potential customers handle having to pay for an estimate?

[Littlefield 65]

Sorry, Mike. Guess my answer was ambiguous. I'm not charging the customers up front, just making the point that they get charged one way or another, and most seem to feel its an affront to charge them up front. Now one way to give away your time is to NOT track and average how much time you spend a month or week and remember to figure that into you ovehead....all part of the sales/marketing line of my overhead. It goes in with business cards, marketing materials, etc, just like I was paying a salesman.

[Mike Williamson 198]

Sorry, Mike. Guess my answer was ambiguous. I'm not charging the customers up front, just making the point that they get charged one way or another, and most seem to feel its an affront to charge them up front. Now one way to give away your time is to NOT track and average how much time you spend a month or week and remember to figure that into you ovehead....all part of the sales/marketing line of my overhead. It goes in with business cards, marketing materials, etc, just like I was paying a salesman.

Actually, it was me who didn't read your answer carefully enough!!! I never got past the first part of the first sentence!

[Beth n Rod 1,279]

With costs rising, its getting to the point that we may have to charge a fee for estimates outside of a pre-specified radius. The time it takes to get there and the fuel expended can really add up.

In a way this will help other contractors as well because it encourages local customers to seek local contractors and if they want someone from outside a service area, then they would be subject to a fee to entertain a price comparison. This applies according to region and demographics to support it and would not necessarily be acceptable everywhere. Its an idea and I think its time has come for further consideration.

In addition, the estimate fee could be waived if the prospect accepts the contract otherwise they will be billed for the estimate after the estimate period expires.

Input, ideas, thoughts???

Rod!~

[Jeff 232]

With costs rising, its getting to the point that we may have to charge a fee for estimates outside of a pre-specified radius. The time it takes to get there and the fuel expended can really add up.

In a way this will help other contractors as well because it encourages local customers to seek local contractors and if they want someone from outside a service area, then they would be subject to a fee to entertain a price comparison. This applies according to region and demographics to support it and would not necessarily be acceptable everywhere. Its an idea and I think its time has come for further consideration.

In addition, the estimate fee could be waived if the prospect accepts the contract otherwise they will be billed for the estimate after the estimate period expires.

Input, ideas, thoughts???

Rod!~

I just cant see doing it, I cant see it being a uniform thing that everybody would charge. Like I said to many dont & wont charge for estimates. I wouldnt pay it. You have to make it up another way. Look in any Yellow Pages and you see free estimates.

If you were going to charge how would you go about it, just wondering?

[Beth n Rod 1,279]

Jeff,

Consider this....

What if:

• you had a set radius where they were free (for example 10 miles - primary service area)
  
• you had found that outside of that radius the number of clients accepting your proposals dropped

Under these circumstances, would you perhaps consider having a small fee for the estimate, that would be deducted from the total if they go with the estimate? Would that possibly:

• reduce the number of unproductive trips farther away from your central service area
  
• increase your close rate in that outlying area

Food for thought...we think about this every year, but have not put it into effect so far. We never rule it out.

Beth

[Jeff 232]

Jeff,

Consider this....

What if:

• you had a set radius where they were free (for example 10 miles - primary service area)
  
• you had found that outside of that radius the number of clients accepting your proposals dropped

Under these circumstances, would you perhaps consider having a small fee for the estimate, that would be deducted from the total if they go with the estimate? Would that possibly:

• reduce the number of unproductive trips farther away from your central service area
  
• increase your close rate in that outlying area

Food for thought...we think about this every year, but have not put it into effect so far. We never rule it out.

Beth

I'm just wondering how you would bring up telling someone theres a fee for an estimate. What would you say?

It would be nice to charge a fee to defer the cost. Its just not the norm so I think they would just call someone else

I think you may not get any of the jobs ifyou tell them theres a estimate fee.

I'll ask if its a distance away how many sq ft is the house and if its a small house that I'll probably not make much $$$ I tell them its out of my area for a small job and I thank them for calling

[Beth n Rod 1,279]

Well, it's not the norm but think of it from this point then...plumbers have a fee just for showing up, electricians do too, HVAC technicians have one. Why are pw'ers exempt? Because we set the standard in this just to get people to call. Times are changing and with it free estimates are getting harder to afford.

I have heard of companies who give estimates by phone and quote a price, but then they bill the customer for anything extra afterwards once sq-ft have been confirmed and other conditions taken into consideration. Not an option we would like to pursue.

Maybe your area won't support it Jeff, but we are looking into whether ours can. It depends on how affluent your demographics are there.

Beth put it very well in the fact that we are trying to increase our closing rate and lower the travel time to those areas that cannot necessarily afford us and make giving estimates more productive. In other words, I am trying to rule out those who cant afford us to begin with from wanting to get an estimate they most likely will not accept. Thats the picture.

Rod!~

[Mike Williamson 198]

I'm just wondering how you would bring up telling someone theres a fee for an estimate. What would you say?

It would be nice to charge a fee to defer the cost. Its just not the norm so I think they would just call someone else

I think you may not get any of the jobs ifyou tell them theres a estimate fee.

I'll ask if its a distance away how many sq ft is the house and if its a small house that I'll probably not make much $$$ I tell them its out of my area for a small job and I thank them for calling

I think the more specialized your service is (such as with wood restoration) the more likely it is that customers will accept an estimate fee. If you have a reputation as a top notch wood care company, people will be more willing to pay a fee to get you to come look.

Granted, I don't think anyone is going to pay a fee for me to come look at their housewash and driveway cleaning job, and for me it really isn't an issue most of the time...any given job is no more than 10 or 15 minutes away at any given time, and can easily be worked into my normal travels around town.

[Beth n Rod 1,279]

Depends also on your call volume and the amount of time you have to give estimates....

Beth

[Jarrod 22]

I like the idea of "fee" estimates. I just think that people will just throw the bill in the trash and laugh. I thought about this a lot as I do over 200 estimates every summer. At $5 per estimate, it would be worth it for me. I like the idea Beth had about charging outside a certain radius. Of course, if the cust. accepts the bid the charg would be waved.