Estimates.

BamBamm5144

Tinner, Thanks for you insight on this topic since we are in the same trade and since I never got it before from the other site. That is why I want to try it. Why send 15 estimates to only close 3 when I can do 5 estimates and close 3 and get paid for time on the other 2.

RizzoMaryland

Never seemed like a risk to me. Site traffic hasn't changed much. Calls are fewer. I'd get 10-15 calls, and sell one job.
Now, I get 2 to 5 calls and 4 of 5 are 'pre' sold before I go look at the job. Saves a lot of riding around, imho.
No, I don't have a sales pitch. I just offer a good service, and solid workmanship.[/quote]


Maybe some of those are referrals or saw you working in the neighborhood which gives the HO more to go on than just an anonymous phone #. Or maybe your market just allows for it.

In any case, I'm confident my market does not allow for this practice of charging for estimates until working with the upper upper echelon.

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RizzoMaryland

This may sound crazy but I would prefer to have done 15 estimates and have more "paper" out there. As I said before, just because people aren't buying doesn't mean they aren't talking.

I just got a referral for a large kitchen remodel from a soon-to-be client. Referrals start prior to projects if you wow the HO from the beginning.

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BamBamm5144

Those people who you give estimates to that don't hire you arent going to refer you. If a person calls someone you gave the estimate to and says "oh hey im thinking of calling so and so, to give me an estimate". That person will probably reply, dont bother they are too expensive, or too this or too that.

RizzoMaryland

You are assuming that people don't buy because of something the contractor has done, said, or provided. If you concentrate on getting the sale and perfecting your efficiency, then you will eliminate almost all of these scenarios.

Most of my customers that don't buy, do so because of "external" factors and not because I am too this or too that.

I have received referrals from those that have no intention of hiring me in the future as well.

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SLSTech

I felt the same way, but guess what - it was not an issue

Besides Mike & a few others swinging me that direction, one of the biggest factors was half of my calls asked straight out if I charge & them sounding ecstatic when I said no. Another part was - any service tech that comes out charges, even Home Depot & Blowes charge now for their in home measurements & estimating.

If they want a rough estimate for free - I will give it to them over the phone. The biggest obstacle for most of us - is us, not the customer

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MarcD

Depending on the job I usually do not charge estimates. Usually if it goes into the 2k and up range I will then charge a estimating/design fee that I give back as a credit towards labor.

RizzoMaryland

Any one going to HD to get an estimate has already made up their mind to use HD. These are uneducated consumers who think they are getting a no-hassle deal. We here know that is not the case.

Again, I refer to my original post in this thread. We are misguided by debating whether to charge or not to charge. If these "scraps from the table" are such a concern then you aren't seeing the forest amongst the trees. There is a bigger issue at stake than "everybody is else is doing it" nonsense.

However, that philosophy has a flip side. If you don't charge while everyone is charging, then you are separated from the pack and possibly held in high regard because of this differentiation.

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J F

I think you may be mis-understanding the concept of charging for "estimates", for me at least, it's not about the income, but about setting the precedent that my time has value to it.

Yeah, I may lose out on some great clients who just want "free" at first, but I also lose ALL tire-kickers.

There's always a trade-off in everything we do, but I do find it very interesting that anyone would think that the contractors who have figured out how to not give away their time for "free" are somehow in the wrong.

RizzoMaryland

Reread my original post. I never said anything about being wrong. Look for the opportunities in every situation makes a good business person. The quicker that is realized, the better your business will do.

[quote] I must first say that I agree, we should get paid for our time involved with meeting, proposing, designing, drafting etc.

BUT, I believe the majority of these "charge for estimate" discussions are misguided.

Is the $25, $50, $75 estimate fee going to keep you in business or out of the poor house? Of course not.

Why risk a sale for such a small amount of money? Sure you get compensated for your time. But why not take a different approach and focus your attention on providing a "slam dunk" presentation/estimate to ensure the sale.

There will always be those tire kickers out there. But in most areas, at least currently, I would imagine most are not charging for estimates and probably never will. Therefore, it makes it very difficult for those of us to justify this initial expense to the HO. You will waste your time on occasion but even tire kickers talk and possibly refer.

Some have such a lock on their market that they can charge for estimates. BRAVO to you.

But for those of us who operate in very competitive areas/markets, the same probably won't apply.

Focus on the sale and the long term gain by establishing a new customer! Forget the instant compensation.[quote/]
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"An idea is salvation by imagination"
Frank LLoyd Wright

J F

Thanks for the clarification...I only wish I had anything resembling a lock on my market.

J F

Even with what I charge, I'm not getting compensated for my time, kind of a "loss-leader" type of thing.

Just getting rid of ALL the time-wasters. I've offered to do "free" estimates if the prospect will come over and help me cut my grass/fold the laundry, but no takers....

CSinc.

personally i spend the hour and a twenty on gas to possibly bring in $1500.i gamble on scratch offs almost everyday anyway.so to me free estimates arent a big deal.wise man once told me that "cost ALWAYS gets passed on to the customer".