Free Estimates

JSC

I know a lot has been said about free estimates, but now that people's homes have fallen in value by as much as half the mentality is back to price foremost.

I was reminded of how people have no respect for anything free yesterday, when I went out on a reroof bid for someone in a neighborhood where we had done a job two or three years ago.

I climbed down off the roof to talk to the homeowner, who had just arrived and went to tinkering with his pickup in the garage. I attempted to hand him the estimate, but he just looked at the price and said that he had gotten a similar price for tile (he asked for dimensional comp shingles) three years earlier (like prices haven't gone up in three years?). Then I tried to hand him a manufacturer's brochure for color and style comparison and he said "don't bother" and that he was going to get more bids. His tone was rude.

Another jerkoff who wouldn't be getting bids for three years if they cost him $75.00 each.

This experience is common enough that I'm pulling out of residential altogether. For the same amount of time involved I could bid a commercial project ten times the size.

Just venting mainly, but what are your thoughts about "free estimates"?

SalesMGR1011

I saw an extensive discussion of this a little bit ago and someone posted there little quotes they put on their estimates that they charge for.In my experience for what its worth it is a necessary evil, I do charge for estimates in the case of insurance but otherwise I do free estimates, now a bigger project with multitudes of work I woould charge a fee. Unfortunately we are one of the higher priced companies so I do a lot of "free" estimates and I know what you mean about customers. I have some that just think we owe them a free estimate and its our obligation to run right on their whim to do it.

mics_54

Ya that's what I wanna do...be a professional estimator..I bet I can do 50 estimates a day at 75 bucks...let's see...that's $5,250.00 a day. I could be RICH!

Seriously. An estimate is an APPROXIMATE cost based on known and UNKNOWN values. An estimate shouldn't take alot of time if it's free. In the total economy of business there is nothing free. SOMEbody is paying for that free estimate.

skymaster

I tell them up front I charge however If they agree to give me the job I then take the fee off the final price. Of course you have it already bilt in

JSC

Maybe it would have been more clear if I'd said "bid" instead of estimate?

Yeah, IF you could give 50 accurate bids a day @ $75, you could get rich. I'd bet you can't. Have a problem with the concept of being paid for your time and expense, and weeding out the flakes?

Mike Finley

In the last 2 weeks I have gotten 3 phone calls all duplicates of one another. Each one has started the conversation after hello with "Do you give free estimates?" as the first thing out of their mouths, to which we reply no and they are silent for about 5 seconds or say something in a confused manner such as "Huh" What? as if they can't believe it.

I can only attribute it to Angies list.

In the last 2 years I have gotten that question maybe once. 3 times in the last 2 weeks, something is up. Maybe someone else has finally started charging for estimates in Denver besides us and they are searching for somebody who doesn't.

Crazy.

Can you imagine the type of customer you are dealing with when their very first concern is do you do free estimates?

thesamba

I have to agree with "SalesMGR1011" and the fact that FREE ESTIMATES are a "necessary evil." In many caaases it seems like a waste of time, but if you really think about it, I think we all do it from time to time. In the sense everytime you go car shopping, or purchasing a TV and go to multiple dealerships or stores, you are price shopping. Us providing estimates is in a sence the homeowner price/quality shoopping.

Now i feel for you that the homeowner wasted your time, and had you known that ahead, you might not have gone, but that just goes back to the "necessary evil" again.

AtlRemodeling

We do provide free estimates and initial consultations. I can usually figure out from the first meeting whether or not we will work for a particular client.

We do very little advertising as nearly 95% of our clients are word of mouth so we go into each initial meeting with a bit of an edge on other potential contractors. Since do not really advertise we do not get a lot of "tire-kickers" so we are not doing a tremendous number of bids each week.

As we continue to grow and our advertising branches out, I may have to re-visit the topic but for now estimates are free.

tinner666

Quit free estimates a few years back. Haven't missed any opportunities because of it.

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mikec

I think our business is different than car shopping or tv shopping. If I have a problem with my truck, and take it in to the dealer I have to pay a diagnostic charge to find out what the problem is. I am starting to look at estimates more like that. If you are looking at new cars the dealer knows what he pays for the cars, and what he needs to make. If you have a problem with your car and need service he needs to diagnose the problem as each one is unique.
I currently give free estimates, but I'm doing a lot of reading and revamping of my business, and I am going to start charging for them. I was thinking along the lines of the estimate refunded if we get the job.

PA woodbutcher

Sounds like my business model. Third year in business and have not advertise at all except for the yellow page (not 1 call on this). I do most of my remodels and some decks at cost plus off from an estimate. Roofs are an easy bid and have very little time involved and they are good money, so I really don't mind doing them. I only do 1 or 2 estimates every week or 2.

All decks that I will have to do a drawing on to have approved for code enforcement, are chargable period rather I get the job or not. I spend a lot of time on my take offs and I'm usually not far off one way or the other.

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threaderman

If they are within a few miles of a current job ,or my office,then i will take a look.I ask one thing,please call or e-mail me with your decision on who you chose if it wasn't us,and why,so I can learn.People never keep their word,what a way to live,living lies and using people.I never say I'm going to do something without following up.I know,I seem naive' ,but I keep trying to be positive about people in general.I'm gonna have a frickin heart-attack when someone actually does keep their word.

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buildpinnacle

I am probably part of the problem. I don't charge for estimates, but think they should be charged for. I do use that time to develop the client relationship, gain trust, etc. I will not do an estimate without a home or business owner present. I always set appointments and do not just 'swing by'. Our volume ranges from 750k to 1 mill so we are not a large company and I am not bombarded with 5 estimates a day. I have no salesman and wear all the hats myself. I just promoted my lead foreman to a field super after two years of training and he handles all things not sales in the field and puts his bags on when needed. Now I have more time to develop the business and sell.

As someone stated earlier, after several years in this, you get a feel for people. I usually know within a few minutes whether I want the project or not, the people are full of *_it, etc, or whether they are just window shopping. Trust me, I ask. I establish thier budget, time frame, # of potential bidders, who they are, etc. and start moving into objection covering mode immediately. I try to put people on the dime. I have left appointments when people have told me I'm #5 contractor on the project so far. I tell them they should have plenty of information and they don't need mine.

Bottom line, people will waste your time. You have to work harder than ever to qualify them before wasting your time on them.

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JSC

What's different about it is in the examples you mention, it is you (as a customer) going to a stationary place of business, not the businessman driving to your location, wherever it may be.

Imo, it's only a necessary evil because contractors don't stick together and all charge for estimates. Try getting a washing machine repairman out for free.

mahlere

i would agree with you, if the homeowner brought their home to your shop/office...

think for a second...in your examples (and there are many more out there) the consumer spends the time, fuel, etc (i.e. money) to go from store to store comparing prices...

in the trades, you the contractor spend the time, fuel, etc (i.e. money) taking the store from house to house so the consumer can compare prices.

2 completely different scenerios...

Mike Finley

I don't know.

I just pulled up a Quick Books report and it says just over $3000.00 this year in fees associated with estimates.

Hmmm... for you boys quick with the math, if we take out taxes, how would you like to have a check for $2000 magically appear in your hand right now for nothing more than what you already did for free this year?????

I don't think the question should be should you be charging for your extremely valuable and limited time you spend dealing with estimates, but instead should be why wouldn't you?

I mean, why the hell are you charging customers for the work you do? Seems kind of silly to me with all the competition out there, you'd get a lot more work if you advertised free work along with your free estimates.

fez-head

We recently had a woman call to say that she heard that we charge $35 for an estimate and wanted to know if it was true. Our secretary politely said yes we charge a $35 consultation fee for all new clients but the $35 is credited back on the first invoice.

Our secretary further went on to explaine that it is our belief that after using Handyman Solutions the first time they will know the caliber of our men/ workmanship and will continue to use us for future projects. Once they are an established client we will no longer charge them for estimates as a reward for continuing to use us.

95% of the callers agree with this and say that they totally understand the consultation fee. This particular lady was not one of those 95%’s though and proceeded to yell and cuss at my secretary. She claimed that it was not right to charge for an estimate and if she wanted to pay for an estimate she would just use Lowes because they charge the same $35 and are a much better company.

The good news is Lowes now charges for estimates in my area and we also avoided another left wing nut job that thinks she is entitled to something for nothing at someone elses expense

dougchips

I get about a 10% response rate on why I did not earn their business. Generally I learn from the feedback and make changes to my sales presentation.

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Mike Finley

Well, that changes everything.

You watch and see how things change now. If Lowes or Home Depot charge for estimates, then the rest of the contractor community will now believe it is okay. It sounds funny, but it's actually quite sick.

It's a fact that for some reason contractors think whatever Lowes and Home Depot do is the industry norm. Every time I read a post here about how Home Depot does this or that, how they charge this or that, it blows me away when contractors line up to validate somehow how Home Depot and Lowes set the standards of our industry.

Only a matter of time now then until everybody is charging for estimates.

Thanks Lowes!

Snow Man

my estimates are included in the sale of the job under miscellanious
(Check spelling)

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