No such thing as a "free" lunch

[Beth n Rod 1,279]

How many of you have heard the old saying "there's no such thing as a free lunch" and really stopped to think about it. We all like things that are "free". But what is "free" really, and who is it "free" for? Let's look at "free". Say you go to a trade show. Any kind of show for our purposes here. Vendors typically have "free" tings out in the booths. There are "free" pens and "free" samples and "free" key rings and such. Are they really free? No, not really. The vendor who bought them, had to pay for them. They effected his bottom line and cost money. Now depending no how many widgets anyone gives away it might be something a vendor can absorb and pass on, and maybe it's not. If you give away enough "free" things, you might have to raise a cost somewhere.

This applies to your contracting business as well. "Free" estimates have costs in fuel, wear and tear on the vehicle, printed materials, and your labor time to give the estimate. Nothing is free. Look at it this way, if you spend entire days out of a week doing estimates, what are your days worth in dollars had you been working?

Now we also have organizations in our industry, and they are not "free" either. You see folks talking about this and that should be "free" but how can it be? The same costs above in the other two instances apply to orgs as well.

OK, I'm off my soapbox. Jump on yours and add your .02 worth.

Beth :groovy: :groovy2: :groovy3:

[Atlantic Power Washing 14]

Well, when I wash a house for $250 and then clean the sidewalks and maybe a patio at no extra charge, it's free to my customers. What do I get out of it? Hopefully a repeat customer who is happy with my work and will tell their friends about us. I believe in making my customers feel like they are the ones who made out on the deal, not my company.

[Chappy 138]

Got my first issue of cleaner times and was reading the article about free estimates. his formula was interesting. Hadnt really thought about it much until today. I used 1.5 hours and $7 in gas. Now I dont want to go through the trouble to use that formula to figure out the cost to me, but I dont think the public in this area would accept a charge for estimates, and if I didnt go, that chance to sell him would have been lost. I could have given a price over the phone and been pretty close, but I like the face to face. in a competetive environment you gotta give, even if it affects the bottom line, or you wont get.

[Atlantic Power Washing 14]

All my estimates are over the phone. Saves more time and money than I loose on an under bid. My prices are on my web site. Most customers just call and say "I want to shedual to have my house washed" no questions asked.

[CCPC 26]

All my estimates are over the phone. Saves more time and money than I loose on an under bid. My prices are on my web site. Most customers just call and say "I want to shedual to have my house washed" no questions asked.

I've given a ball park here and there over the phone, but when I don't get the face to face time I tend to have fewer deal closers. The other problem I have with "site unseen" jobs is that it's to dificult for me or the customer to describe every last detail of what the job will entail, therefore, you can run into problems with not having the right chems and/or equipment, or suprise the customer with a much higher price because there was more there than was effectively coveyed by the customer over the phone.

I think its much less profitable to arrive on a "site unseen" job site with all of your equipment and end up not being able to do the job because of an endless list of reasons, than to schedule a 20 minute estimate while out and about and get a rejection.

[James 625]

House's quoted over the phone are alway's bigger than what the owner say's. In the last 2 years I've done about 10 decks ( new) not seen. Very large also.

[John T 744]

The only thing that I can think thats free is the air you breath..After that there's nothing free..not even in our great country...Everything has a cost but if the cost is low then thats as close to free as your going to get.

[Beth n Rod 1,279]

How does this all relate to opportunity cost? Why should we consider opportunity costs? If you wash a house as in one example and wash the walk free, what is your costs associated with the "freebie"? Not saying you shouldn't throw that in by the way, we do that too sometimes, but isn't it important to know what "free" means to you in that case? We know to the client it means "free" but to you , there is fuel, machine wear and tear, physical labor time, and maybe other chems supplies depending on what you do.

Now how does "free" relate to organizations in the industry and to what we should reasonably expects for free? Can anything of substance be offered for free? Why or why not?

Back to my coffee. We have a foot of snow here...

Beth :cup:

[Atlantic Power Washing 14]

I here you about the snow. As you know, I'm just south of you. I've been playing all morning. Anyways, you're right there's nothing free for us, except for maybe the catalogs that come in the mail. That cost the suppliers money. However, it's a nessary evil, it's the only way them to markit their supplies. This website's free to all of us. I don't learn much from it because i have been in business now for almost 10 years and have spent 100's of hours studing, but it does keep me interested in my job as a professional pressure washer. It is important to stay interested, because as Donald Trump said "It is important for you love your job in order to be sucessfull"

[Beth n Rod 1,279]

Tom it's good seeing you here! Hope all is well down your way. I don't know about you, but I'm ready for spring after this snowfall.

Beth

[Atlantic Power Washing 14]

Oh yea, gotta love spring....we're so full of energy, the weather's nice, Nascar's back, and we start making money again. It's all good until the humidity kicks in around July....then we're tired and want a break.

[James 625]

The cost is all relative to what type and how big your biz is. Once you get up to a certain figure and the type jobs you bid on estimating changes. The larger you get can you support a paid estimator or salesman?

I choose to stay small and service a niche. I have not bid against anyone in a couple of years (woodcare Highend ). The Pressure Treated maket I don't bother with unless I was refered. I rather do 10 2500 sqft decks than go after 50 500 sqft PT decks.

Basically when I do a quote I have the job( woodcare). So I'm there to check out the property and to see if I want the work. The process just evolved over time. The first time I do a job they get the SPIT and POLISH treatment. I never feel it's for free or I give away work.If you do a 400 dollar house wash and take an extra hour to do to the walk area's. In three years you gain over an hour on the job plus the neighbors. No estimating!!

Every job is an opportunity to perform and to secure other work. This drives down advertising and estimating cost.

[bforbis 14]

"Free" estimates have costs in fuel, wear and tear on the vehicle, printed materials, and your labor time to give the estimate. Nothing is free. Look at it this way, if you spend entire days out of a week doing estimates, what are your days worth in dollars had you been working?

Yes, I read intently the discussion about whether estimate should be free and or who would charge for them. It is a necessity in almost every business to give the customer some evaluation of what the work will cost.

I also saw the formula in Cleaner TImes for what estimates cost the contractor.

Last week I had a "competitor" call pretending to have some work that sent me on a wild goose chase for about 2 hours!

What a complete LOW LIFE P.O.S.!

[Mike Williamson 198]

I've given a ball park here and there over the phone, but when I don't get the face to face time I tend to have fewer deal closers. The other problem I have with "site unseen" jobs is that it's to dificult for me or the customer to describe every last detail of what the job will entail, therefore, you can run into problems with not having the right chems and/or equipment, or suprise the customer with a much higher price because there was more there than was effectively coveyed by the customer over the phone.

You also lose your chance at upsells if you quote over the phone. Sure, you can upsell when you get there to do the job you haven't seen yet, but what if the homeowner isn't home, and/or is unavailable by phone? What if you didn't leave enough time to complete the job plus all the extras that may need to be done, if you can even get customer approval? I can't count how many roof jobs I've upsold when the customer called for a housewash...I always leave a proposal for what they requested, plus anything additional I see that needs cleaning. My before/after postcard left along with the proposal has helped sell quite a few roof cleanings.

The only thing that I can think thats free is the air you breath..

Even that isn't free. You spend energy to breathe in and exhale... :)