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!

[Beth n Rod 1,279]

If we decide to do it, we'll let you know how it goes. Again, we have talked about it for a few years now, but have yet to do it.

We may test market it this year in one area...not sure yet...

Beth

[Jarrod 22]

I'll let you know

[Mike Williamson 198]

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.

If you average $200.00 per job, all you'd have to do is lose 5 jobs that you'd normally have gotten, and you've lost everything you though you made on estimates. Likely you'd lose more than 5 jobs over a fee based estimate, but maybe not.

[Jarrod 22]

That's what I'm thinking too. I just do not think people will pay.

[James 625]

The only thing I thought about charging for is test spots for stripping. Sometime's they take hours. Also wood restoration jobs over 10k seem to take me a long time to quote.

[Beth n Rod 1,279]

Hey Jim,

Very interesting thoughts!

Something more to consider. Thanks for sharing. :)

Beth

[Beth n Rod 1,279]

For clarification.

The basis for the fee would be if the prospect didn't accept the proposal. Otherwise, the fee would be waived upon acceptance. Also, noting the reason for the fee would add understanding to justify it. It may result in an increase in phone calls for over the phone estimates to get by the estimate fee but we cannot in all good conscience resort to making additional charges after the job is done because we couldn't take all the necessary information into consideration before hand.

Its all under consideration for our next local Round Table discussion. Let us know what you think?

Rod!~

[Beth n Rod 1,279]

FYI....the fee would need to be communicated and agreed to prior to a trip to the residence. Not something you drop on an unsuspecting homeowner.

Beth ;)

[JFife 14]

I charge for estimates out of a certain area, and if it isn't commercial. Granted, mine are higher ticket items. I often have people OFFER to pay for estimates....ever have that?? I always know these are the people that ain't buyin', and they feel bad for wasting your time, or, they want it for litigeous reasons.

People will expect A LOT more in a paid estimate--expect follow calls and emails with lengthy questions. I refund 50% if I am hired (sometimes 100%, depends on situation) and that is the seller. People hate to think they wasted money. Other thing--this is a GREAT way to weed out bad customers. If they complain about this, they'll be complaining aobut everything. I told a guy once that there'd be a fee for an estimate, and he started pouting and said, "uh, well I don't want to pay for an estimate, I'm not even sure if I am going to get this work done!"

I laughed and said, "now you understand why I don't want to waste my time giving you a free estimate." And he hung up. Also, I have a lot of people that are about to put an offer on a log house, and want to know what this work will cost before they plunge. You gotta charge when the people don't even own the house!

[Beth n Rod 1,279]

Jon,

AMEN!

Beth

[Work2Fish 14]

Squirtgun is right, we should factor in an increase in our rates to compensate for loss estimate time and expensive gas prices.

[James 625]

HOUSE WASHING PRICES. I haven't changed my prices in ten years and the last couple of quotes I was 100 bucks higher.I can't raise my prices for house washing. I did get the jobs though..

[plainpainter 217]

I think giving free estimates or not is not a choice you can make. It's a reflection of the market. If there are too many contractors in one area of business - then certain things are done to be more competitive, e.g. free estimates. Think of it as a buyers' market. Obviously we would all like to filter out all the ding-dongs - heck even my own neigbor had me over his house 11 times for estimates on house painting, deck restorations, pressure washing a house in another town that he was custodian for. After a while it occured to me that this guy ain't signing anything - so I walked away from him. Maybe something silly as just charging $5 will be enough to separate good clients from idiots. Certainly, if I was backlogged - I'd ask money for estimates - what do you have to lose? Think of it like testing the market, like when you ask for more money than you normally would to do a job.

-plainpainter

[Don L 14]

I would like some help defining terms."Free estimate".When I respond to a call for an estimate,if the owner is there,great!If they are not present,phone work is fine.Word's can be deceiving,but a great deal of character can be reveled through conversation.Phrases,pattern of speech..,but,this isn't Vegas.

The lack of customer contact(face to face) is simply a circumstance.

Yes it cost's a great deal more today than it did years ago.I view the free estimate as your opportunity to sell your company.It is an investment.

You lay your knowledge,and your repuation on the line,everytime.The reward is the contract,the job.The public perception of the company(i.e. the customer).What do you do?Advertise free estimates,but build them into your prices?This is a problem.Minimum charges are a must today.Fuel is the first thing that comes to mind,but how many times has the bid process turned into a job itself?You don't hand the a customer for a bill for the bid,so is it free.I tend to lean towards Rod and Beth's assessment concerning the life span of the free estimate.I also liked the concept of waiving the bid fee if job is sold,Fair,gives you a little cya,gives the potential customer(potential advertiser) a way out,and weeds out the folk's that just want to chat.Great thread.

I believe that every situation is unique.It rest's upon the decision of the estimator.

It is an art,as well as measurement.

I would be interested in hearing your views.What say you?

[mas3372 14]

I am very pleased with my estimating procedure I have developed in the last month. I owe much of the east to a website I found that will show me a picture of the home, foundation size, garage size and so on. As I am taking the call I can get the picture up on the house as I am describing my washing methods, ins, licensing and what my competition does that ruins their home. Once I have the pic up I have a real good idea of what I would charge. I then tell them the $50 window, ie. "You house including the outside of gutters and front steps will cost between $375 and $425 depending on..." I then go on to say "we can schedule the work and before I begin I will tell you the definite price but it will not be more than $425" unless there are some drastic changes. This has not failed me yet. They know the max they will pay, they understand my washing methods and the job is scheduled.

Decks and so forth I must see and measure.

All estimates are free.

[Mike Williamson 198]

I am very pleased with my estimating procedure I have developed in the last month. I owe much of the east to a website I found that will show me a picture of the home, foundation size, garage size and so on. As I am taking the call I can get the picture up on the house as I am describing my washing methods, ins, licensing and what my competition does that ruins their home. Once I have the pic up I have a real good idea of what I would charge. I then tell them the $50 window, ie. "You house including the outside of gutters and front steps will cost between $375 and $425 depending on..." I then go on to say "we can schedule the work and before I begin I will tell you the definite price but it will not be more than $425" unless there are some drastic changes. This has not failed me yet. They know the max they will pay, they understand my washing methods and the job is scheduled.

Decks and so forth I must see and measure.

All estimates are free.

I assume this is a website that is local to you?

That's one thing that is very lacking in our property appraiser's website. We have a diagram of the house layout, but no pictures. I can find the size of the house, and whether it is 1 or 2 stories, but not how steep the roof is, how large the driveway is, etc.

[mas3372 14]

Thats too bad mike, because it is a great tool. I can get the size and a pic. Also the sales price, the value and a few other demographics. Hopefully technology will catch up for you.

[Mike Williamson 198]

Thats too bad mike, because it is a great tool. I can get the size and a pic. Also the sales price, the value and a few other demographics. Hopefully technology will catch up for you.

Well, our county does have a pretty comprehensive website, and the way it is laid out, I can download certain neighborhoods, all the houses on a particular street, etc. I have access to all the sales info, house size and layout, etc. It only take about 15 minutes to download the neighborhood, convert it into Excel, clean up the data, and import into a Word file to print letters or mailing labels. It is MUCH better than most appraiser websites I've seen, but I do wish they'd have pictures! On the other hand, I've been to appraiser websites that have pictures and more info, but you can't search by area, only a specific address, owner name, or parcel number, meaning I couldn't do my mailers in the way I do that. That's much more important to me.

[mas3372 14]

Good point on the mailers mike. I just did 1000 post cards and they were delivered saturday and today and have recieved 13 calls so far and 5 jobs with the other 8 pending me getting in touch with them on a call back. I bought my mailing list for $75 and it was well worth it. Gave me 1700 people with some strict demographics. The appraisal sites for me save me so much on quotes and the homeowners love it once they know they don't have to wast time to meet me and perhaps another guy to get a quote and then call back. Saves so much time on both ends and today, time is money.

[Mike Williamson 198]

Good point on the mailers mike. I just did 1000 post cards and they were delivered saturday and today and have recieved 13 calls so far and 5 jobs with the other 8 pending me getting in touch with them on a call back. I bought my mailing list for $75 and it was well worth it. Gave me 1700 people with some strict demographics. The appraisal sites for me save me so much on quotes and the homeowners love it once they know they don't have to wast time to meet me and perhaps another guy to get a quote and then call back. Saves so much time on both ends and today, time is money.

Keep us updated on how they do in the next couple weeks. 13 calls on 1000 mailers is great for a 1 day response! If you get quite a few more calls in the next couple weeks, I may be bugging you for the name of the company where you got your list!

[Dan Stapleton 14]

Me too. Thats awesome.

[mas3372 14]

I will be sure to let everyone know. I am keeping count of how many calls and jobs I get. My first job today paid for the list, the post cards and the postage. the rest is gravy.

[mas3372 14]

Mike,

found a new site, check it out. It is not as great as the sites I have but this site can give some info for you. WWW.ZILLOW.COM

It will at least give you the assessed value, neighborhood and some demographics.

To give you an example of how lucky I am. Go to this site

http://www.riliving.com/OceanState/TaxRecords/Default.asp

click East Greenwich, click access data base and then choose East Greenwich again. Type in 2 clauson and select search top left. then click the address. I quoted this house recently. This site is average on what most towns offer, some give more info and more pics.

[Mike Williamson 198]

Mike,

found a new site, check it out. It is not as great as the sites I have but this site can give some info for you. WWW.ZILLOW.COM

It will at least give you the assessed value, neighborhood and some demographics.

To give you an example of how lucky I am. Go to this site

http://www.riliving.com/OceanState/TaxRecords/Default.asp

click East Greenwich, click access data base and then choose East Greenwich again. Type in 2 clauson and select search top left. then click the address. I quoted this house recently. This site is average on what most towns offer, some give more info and more pics.

Here's what I have to work with...very nice, but lacking pics!!

http://www.acpafl.org/search.asp

[mas3372 14]

Pics are everything. It is very tough to imagine what it can look like. Not to mention, throw in multiple peaks, dormers, etc. Hopefully technology will catch up for you. All these sites up here are fairly new, within the past year or two.