Poll: Do You Give Free Estimates?

NewL

I've been surfin' throught the threads about free estimates but didn't see a poll.
I just did up a bid for a garage conversion to living space and laundry room to bathroom. Met with the homeowner Thursday morning spent part of Thursday all of Friday and part of Saturday contacting subs (Elec, Plumbing, HVAC) city planning/premits, material list and labor estimate. Went by Monday with the bid and someone had already started the job, 2 days earlier! I'm a newbe and learning the hard way I guess. I think that was my first and last free estimate!

Grumpy

I almost always give free estimates. Criteria for not giving a free estimate? I am not interested in the job or it will take me days to figure the price (such as is the case of some sub divisions).

Keep in mind this answer should vary based on the type of contractor you are. If I were building very custom houses or worked for exclusive clientelle I would charge.

For repairs I will sometimes give ballparks over the phone, again falling back on the "sometimes I am not interested" answer. The problem is in my area guys are soooo willing to not only give away their services at zero profit but they love giving away free estimate also.

We've discussed this quite a few times you might want to use the search button.

Peladu

This is how I do it. I go to the house/business and listen to what they want and basically size up the job. I then will just outright tell them, “Mrs. this is going to be around $4,000 are you aware of that?” If they look like they are going to faint, or cry I will explain myself and the reason I think it’s that price. If they have already fainted or are now uncontrollably crying, I apologize and excuse myself. BUT if they look me in the eye and say that they figured it was going to be around that amount, I will take all the measurements and details, then go to the computer, calculate numbers and generate a proposal that is mailed to them. This system has saved me countless hours of generating proposals and measuring when the customer didn’t have the budget to proceed with the job after all.

mdshunk

Free estimates? Sure, but I probably shouldn't. But that's all it is... an estimate. It may be higher or lower than the actual invoice. An estimate is not a quote or a bid. It is important to make that clear to the customer. It aviods possible hard feelings later.

NewL

Maybe I should give free estimates (a guess), but charge for a quote (several hour/day work-up).

Chuck

RobertCDF

I currently do free estimates but I going to start changing the way I do them. I am going to start giving a ball park over the phone based upon info they give me and if they dont like what I tell them I wont bother wasting my time coming out and looking it over.

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Robert Shaw
Colorado Springs Custom Decks
Colorado Custom Decks
Custom Composite Decks

Mike Finley

Robert, because you are a fellow Coloradan I'll help you out...

If you want to build all the decks you want for all the money you want to make don't fall into the trap of the other lazy contractors and start prequalify over the phone. Pursue every lead without prejudice, work every lead using your system and you will sell more decks. For every couple of customers you save yourself from seeing who are jack-offs you are going to miss a customer who will turn out to be a gem. Your presentation builds value in you and your product, you stand little chance building any value over the phone just giving out a number, that is connected to a customers preception of a deck.

Look at it this way - have you ever gone on a sales call that you felt really had a lot of potential only to find out what a waste of time it was? If you missed judged a customer you thought was a sure thing how can you be sure you won't miss judge a customer who seems like a waste of time?

Mike Finley

You can start charging for estimates or quotes or bids or whatever you want to call it, but you might be better off just sharpening up your business systems to streamline your estimating process. Once you get a handle on the expenses associated with different aspects of the jobs you are going to be doing you shouldn't have to spend 3 days putting together and estimate, with good systems in place you might get that 3 days down to 30 minutes.

jmic

Sounds like these people already had their mind made up and played you like a violin. Around here it usually takes 2-3 weeks to go through the process of getting a permit and then plumbers, electricians, hvac, ect. have to pull their own trade permit. Or did the people want to do this on the sly? Maybe you should call in an inspection for them!

Eric K

I think that giving a ballpark on the phone and charging for an estimate isn't the most effective way to do business, like Mike said you could miss that one gem customer that gives you referals out the a hole. Besides how can you sell yourself to a customer over the phone by just saying, well you know this is going to come out to ***x dollars? Without seeing the job I never give any amount cuz if its way more than you ballparked then you're in a bad position because now you have to do more explaining on why things are the way they are.

Just my .02 as they would say.

Tileworks

I always give free estimates. But as a tile setter, all I have to do is take measurements and plug them into my price list, which is always by the square foot, linear foot, per piece, etc.

A small job might mean that my predetermined price list will be too low. Then I will beef it up to how much I want to make per day.

A complex job is approached the same way, based on how long I think it will take to get done.

The only time estimating is somewhat burdensome, is if I am supplying materials and have to call around for prices.

- Bob

__________________
Classic Tileworks
http://www.classictileworks.com
Ohio Tile and Stone Installation Contractor in the Akron area serving Summit, Portage, Medina, Stark, & Cuyahoga counties in Northeast Ohio

tzzzz216

Is anything for free today? I dont think so! But other wise its built into the price of the work to be done,I charge for my estimates and if i get the job I give them a credit for the work to be done..



Try to send these jobs overseas!!

Grumpy

See my statement about not wanting the job. I usually do this for repair work and gutter cleaning where it seriously just is not worth my time. If one out of ten say yes, that's great! I have found for gutter cleaning I can close about 90% on the phone and for repairs about 10%. I'm just not interested in spending the time on estimating repair work if all I am going to make when it's done is a few hundred bucks when I can spend the same time selling a large job which will yield a few thousand.

NewL

Your right there, I neglected to mention that I built a spread sheet during that estimate to use on future projects.

NewL

I went by the city planning/building office to see who got the job... as it turns out there was no permits pulled. I don't know if they'll check further or not.

Chuck

nadonailer

I give free estimates even though I sometimes hate the concept - its just part of the job. If you charge enough overall, the ones you don't get won't matter over the course of a year. I also won't give out prices over the phone - part of what we're selling is ourselves, right? And if the customer doesn't get to shake your hand and look you in the eye, then you're selling yourself short IMO.

__________________
"History does not long entrust the care of freedom to the weak or the timid”.
Dwight D. Eisenhower

jmic

NewL,
You'll find in time that you will come across people like you mentioned above who will hire any dirtbag that comes by because they don't want to pay professionals. They'll hire someone with no insurance, contractors license or references. You can't try to compete with these guys that work out of the trunk of thier cars. These same people will be the ones that give contractors a bad name when they botch up the job or get ahead of the payments and don't finish the job. I guess what I'm saying is in my opinion estimates should be given and not charged for. You have to do your due dilligence to get them out in short order. Ballpark is something a game is played in and should not be used for construction, because at the end of the job either the owner or the contractor will be unhappy. Once the owner hears a figure, it sticks in thier minds and many will think they're getting shafted when you give them the actual bill. Also personally if someone says that they need to get money for thier estimate I tell them thanks but no thanks I'll go elsewhere, plus if you're going to subcontract from a GC, they'll never go for it. Time to say good-bye!

NewL

I'm licensed as a GC, all structures. I'm just considering the time involved, not just mine but for my subs too. How quickly can I expect to put a bid together for say, a $50,000-$60,000 addition with a bath. Requires HVAC, Plumbing, Electric, Flooring, Excavation, Roofing, in addition to my own guys; carpenters, concrete, painting, etc. I can pull a guess from an "RS Means" Costs book, but every site is unique and so is the finish and fixtures. Just seems like a lot of time and effort for free. Also, if the customer wants a $50,000 addition coming up with a few hundred buck for estimates better not be a problem!

Chuck

donb1959

Yes, I do give free quotes.

I'm a paint contractor in a city full of paint contractors. The reason I give free quotes is two fold, like Grump said it lends ones self to credibility, it sets me aprt from others. I have been behind others that write the estimate on notebook paper that you can hardly read, on the back of business cards, etc.

This is the way I do it. I arrive at the job. Present them with a customer info packet which has ins info, referances, pictures, mission statement etc. I look at the job, get my measurements, then excuse myself to the van.

I have a pre-filled contract on memory stick, so I need to add the specifics of the job, I do this on my laptop, then print in off on legal sized paper. I print two copies, and stapel them, I then stamp original on 1, copy on the other. Then return to the home, go over the apprx start time, apprx duration, matierials, matierial cost, payment scheadule.

I then leave them with a copy, and followup in 2 days. It takes time to do this, but it seperates me from the hoard of so called contractors

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JPV123

I also give free estimates. I usually give allowances on the details. Then if I get the job we sit down and go over the details. Since we don't know how expensive there taste is. You can waste alot of time dealing with all there selections b4 the deposit and then not get the job. Get the job first with average cost allowances, then they can upgrade if they want .