River_Roofing

Is anyone giving out free estimates anymore.
We have always done free estimates, but thinking of charging for our time and gas. Thoughts?

rbsremodeling

I think most people are still giving free estimates. I also think Mike Finley has made a very strong case as to why we should not.

I think it depends on a lot of factors to decide if you can charge for estimates or not.

My opinion would be to give it a 30 day shot if you can afford to and see how it works out for you.

I think all contractors should. But I will be honest enough to tell you I don't right now but see it changing very soon.

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dougger222

Never charged for an estimate and never will.

johnk

If some charged for estimates and some didn't I'm sure most h/o would get the free ones.

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J-Peffer

I agree with John. It would be a all or nothing deal. Seems like the best way to elimate leads.

mahlere

I agree...why charge for estimates? We'll never get any work if we charge for estimates...wouldn't want anyone to think we are professionals...why would we possibly want to be anything more than just labor?

tinner666

I charge $25. and get it. And close most that paid too. Seldom see a tire kicker anymore.

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pfelber

I do offer Free Estimates.
Nothing in the world is free though. The paying customer down the line pays for free estimates. Charge the paying customers appropriately.

Phil
http://www.roofing7.com/

coolflatroof

To river roofing,

Hi, are you guys from Oregon? If so, i'd like to talk to you about one thing.

Regarding the topic: We are stopping ALL free estimates unless it is people we know, or existing customers.

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RooferJim

There is no such thing as a free estimate. It cost YOU !
I think it is retarded for a contractor to say in there advertising "Free Estimates" It is good to reserve the right to charge at your discretion, for example the realtor or the person who might by the house etc etc.

mahlere

that's more accurate

Slyfox

I don't advertise free estimates, but i give them,
unless the jobs outside my working area,
or it's a repair rather than a re-roof,
or it's an inspection/estimate type deal involving a realitor, rental property owner, commercial property, etc.

I do not past the buck on to paying customers,
I keep track of such lost as exspense for estimating a job that i did not get and deduct it accordingly in my taxes (lost).

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Mike Finley

Unless you are in the 100% tax bracket, you are passing it along. No different then thinking you aren't passing along your insurance costs, phone costs and every other expense you have. Customers eventually pay for all expenses -- customers not leads, that's the difference.

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Slyfox

Your right, that falls under "overhead cost", i did not mean to suggest other wize.
I just meant, my prices are not increased based on monies spent estimating.
Thats why i clearly state/inform people of my work area.

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mahlere

why? what are you thinking? if it's overhead, it affects your pricing...if you don't let it go into overhead, then you are taking it out of your pocket (profit)...and that's just a supersilly way to operate your business.

Mister Mull

I have an unbiased opinion to report on this from a client I served. She mentioned to me one of the reasons she did not hire the other guy was not because of the $50 charge to give her the estimate that he required (to cover fuel she stated) but was if the contractor needed $50 to be reimbursed for their fuel and time, "How much longer are they going to be in business for?" was what she said to me. It doesn't instill confidence in the customer, that you need 50 bucks to charge for an estimate. In my opion, to the client, you appear to have a lack of confidence before you even get in the door if you have to charge.

Slyfox

I don't know, maybe I didn't word myself properly, any decrease i get in taxes owed benefits me, thus nothing coming out of my pocket, or my paying customers pocket, just a few less dollars going into uncle sams.
Assuming everything is above board, uncle sam don't mine those claims.

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mahlere

i think you are explaining yourself, i just think you aren't understanding how it actually affects you and your taxes...

you are essentially saying "I will give away $5000 of my time throughout the year (arbitrary number) and not charge for it. But it's ok, because I am not paying Uncle Sam $1,250 out of it (25%)"

so you are content giving away $3,750 in revenue, so you don't have to pay $1200 in taxes?

mahlere

i honestly am not super concerned on what one customer thinks...she obviously doesn't have the thought of "maybe the guy not charging will not make enough money to be in business next year"

Mike Finley

I think you are discounting the fact that there may be more to the story. If that same contractor showed up in a beat up old truck spray painted orange with hand painted letters that said "We do Anything!!!!" on it, that might influence a customer's perceptions.

Anyways, that customers throught are the exception. You don't worry about the exceptions, in business it's about the norms. You market to the norms not the exceptions.

On another note, I was listening to a Dale Carnegie CD yesterday and there is a section where they are talking about public perceptions. Very interesting connection to what we are talking about. On the CD they are talking about how the public has a strong desire to be part of something. The example is given of waiting in line at a hot restaurant or a popular movie and how others see people waiting in line and get curious about what is going on. They see others waiting in line for the movie so it builds interest and more people assume the movie must be good and they go see it. Night clubs work the same way. The roped off line out side. The $20 cover charge for the hot spot, versus the free admission to the local bar.

I think they called it the rule of exclusivity. The more the perception the public has of something having exclusivity

#1 The more they want to be part of it.
#2 The more they will pay for it.
#3 Once they get to interact with it, they value their time with it more, treasure their interaction with it more.
#4 Perceptions of it are more inclined to be positive no matter the reality.

The more I listened to it the more it hit home how those who charge for estimates and those who don't are each on opposite sides of the rules of exclusivity.

It boils down to those who don't charge all fall into the camp of nothing worth charging for and those who do fall into the camp of there must be something worth charging for.

Once you get in the door and have a customer willing to pay to see what you are worth charging for, it's up to you to make sure the perception is it was worth it.

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