Fun With Estimates!!!

 
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Old 01-28-2009, 12:49 PM   #1
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Fun With Estimates!!!


Ok so I get a call today from a guy wanting an estimate on a small addition. I go over and he tells me what he want, takes me outside shows me a few ideas and goes over the entire job in great detail. He wants me to give him a ball park figure. So I do. My very rough price was 18k. He starts to scream at me about trying to rip him off and goes on and on about how outrageous my price was. I had all I could do not to laugh. So I tell him i'm sorry he feels that way and i recomend a few other great companies in the area. After a few minutes of him running his mouth he takes my names and numbers of the other companies and says he will call them. Then I leave. About 3 hours later he calls me and tells me he thinks i called the other guys and told them how much to bid. One came in aroun 19.5k the other 18k. Then says that my price is 12k too high. LOL. 13 years in the buisness and I still get a kick out of these kind of people! Only in construction!!

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Old 01-28-2009, 01:28 PM   #2
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Re: Fun With Estimates!!!


Your restraint is commendable. I have a hard time hiding my irritation.
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Old 01-28-2009, 01:32 PM   #3
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Re: Fun With Estimates!!!


i turn them kind of customers down flat. tell him that he's not your type of client that you do work for. that really pisses them off and then they try to get you to do the work for them cause now they feel inferior.
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Old 01-28-2009, 03:27 PM   #4
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Re: Fun With Estimates!!!


I always recommend those leads to my competitors.
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Old 01-28-2009, 03:31 PM   #5
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Re: Fun With Estimates!!!


Thats funny! BTW How is it possible to do that kind of work in Maine this time of year. I always thought of Maine being similar to Alaska. What is it like there right now?
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Old 01-28-2009, 03:39 PM   #6
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Re: Fun With Estimates!!!


Quote:
Originally Posted by vinylguy View Post
i turn them kind of customers down flat. tell him that he's not your type of client that you do work for. that really pisses them off and then they try to get you to do the work for them cause now they feel inferior.

Same here. They get pissed when I tell them I don't "ballpark". I'm not interested in participating in a reverse auction
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Old 01-28-2009, 05:27 PM   #7
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Re: Fun With Estimates!!!


Gotta love the HO"S When he called you back to tell you that you must have called the other contractors, you should have just said very nicely, get another bid from someone different. He would have came back to you, and at that point and flat out tell him he is a &^%$
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Old 01-28-2009, 05:55 PM   #8
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Re: Fun With Estimates!!!


Give him the number for a company out here. I bet that 18k turns into 30-40k minimum
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Old 01-29-2009, 02:05 AM   #9
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Re: Fun With Estimates!!!


12k too high? You should ask him if he is supplying the beer.
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Old 01-29-2009, 09:14 AM   #10
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Re: Fun With Estimates!!!


Get used to the trend, I am seeing more and more people wanting to remodel master bathrooms for under 10k.
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Old 01-30-2009, 04:57 PM   #11
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Re: Fun With Estimates!!!


That's because they see how fast pro's get the work done. They look at Home Depot and see a 2x4 is only $2.

How can it cost 18k to nail some 2x4's together?!?!!?

Jesh, quit ripping this guy off! Surly you can build a 2000sq ft house for 50k too.
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Old 02-01-2009, 04:53 PM   #12
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Re: Fun With Estimates!!!


I know people have no idea how much stuff costs. Me and my father went on this one estimate last year the lady was going on about wanting the addition 2 stories, this and that and what not. Than she says well home much are we looking at ballpark? We say 20k and she was like "ok thanks I had no idea it would cost anywhere that much". Its like WTF! Do some research before you waste peoples time.
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Old 02-01-2009, 05:04 PM   #13
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Re: Fun With Estimates!!!


Whenever I encounter customers like that, I just hand them a list of my expenses. Not the dollar amounts, but what I have to spend money on to stay in business.

Building
Building
Warehouse Space
Trash Removal
Lawn Care
Snow removal
Upkeep & Repairs

Office Expenses
Computers
Stationary
Copy machine
Fax machine
Forms
Printing
Software
Office Equipment
Computer maintenance
Files
Postage
Office Supplies

Benefits
Vacation Pay
Holiday Pay
Uniforms
Uniform Maintenance
Unemployment
Bonuses
Incentives
Retirement Plan
Christmas Party

Taxes
Property Taxes
Tangible Taxes
Pay Roll Taxes
Income Taxes
Sales Tax

Training
Management Training
Office Training
In-House Training
Tech Training
Mfg. Training
Training Equipment
Safety Training
Update classes
License testing

Insurance
Building Insurance
Liability Insurance
Employee Insurance
Life Insurance
Business Insurance
Workers Comp.

Utilities
Gas
Electricity
Telephone / Fax lines
Internet Service
Toll Calls
Telephones
Pagers/Cell Phones
Radio Maintenance

Vehicles
Vehicle Maintenance
Truck Racks
Fuel
Truck Signs / lettering / vinyl
Tires

Financial
Accounting
Loans
Tax Preparation
Interest
30+ Day Receivables
Bank Charges

Travel
Hotel
Meals
Airline / vehicle

Unique to the electrical trade
Licenses
Bonds
Inspections
Permits
Trade Association
Subscriptions
Memberships
Dues
Retainers

Tools
Company Tools
Safety Equipment
Ladders
Radios
Test Equipment
Replacement Parts
Parts Storage
Damages
Tool Replacement

Misc.
Trips to Supply House
Theft
Uncollectable Money
Collection fees
Unbillable Hours
Commissions
Call Backs / Warranty work
Shortages
Bad Checks
Delivery
Credit Card Sales
Drug Testing

Legal
Legal advice
Law Suits

Advertising
Marketing
Business cards
Signs
Radio / TV
Newspaper
Flyers / brochures

Material Purchases
Inventory


And finally........
Labor
Wages
Salaries
Dispatcher
Answering Service
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Old 02-01-2009, 05:18 PM   #14
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Re: Fun With Estimates!!!


Quote:
Originally Posted by 480sparky View Post
Whenever I encounter customers like that, I just hand them a list of my expenses. Not the dollar amounts, but what I have to spend money on to stay in business.

Building
Building
Warehouse Space
Trash Removal
Lawn Care
Snow removal
Upkeep & Repairs

Office Expenses
Computers
Stationary
Copy machine
Fax machine
Forms
Printing
Software
Office Equipment
Computer maintenance
Files
Postage
Office Supplies

Benefits
Vacation Pay
Holiday Pay
Uniforms
Uniform Maintenance
Unemployment
Bonuses
Incentives
Retirement Plan
Christmas Party

Taxes
Property Taxes
Tangible Taxes
Pay Roll Taxes
Income Taxes
Sales Tax

Training
Management Training
Office Training
In-House Training
Tech Training
Mfg. Training
Training Equipment
Safety Training
Update classes
License testing

Insurance
Building Insurance
Liability Insurance
Employee Insurance
Life Insurance
Business Insurance
Workers Comp.

Utilities
Gas
Electricity
Telephone / Fax lines
Internet Service
Toll Calls
Telephones
Pagers/Cell Phones
Radio Maintenance

Vehicles
Vehicle Maintenance
Truck Racks
Fuel
Truck Signs / lettering / vinyl
Tires

Financial
Accounting
Loans
Tax Preparation
Interest
30+ Day Receivables
Bank Charges

Travel
Hotel
Meals
Airline / vehicle

Unique to the electrical trade
Licenses
Bonds
Inspections
Permits
Trade Association
Subscriptions
Memberships
Dues
Retainers

Tools
Company Tools
Safety Equipment
Ladders
Radios
Test Equipment
Replacement Parts
Parts Storage
Damages
Tool Replacement

Misc.
Trips to Supply House
Theft
Uncollectable Money
Collection fees
Unbillable Hours
Commissions
Call Backs / Warranty work
Shortages
Bad Checks
Delivery
Credit Card Sales
Drug Testing

Legal
Legal advice
Law Suits

Advertising
Marketing
Business cards
Signs
Radio / TV
Newspaper
Flyers / brochures

Material Purchases
Inventory


And finally........
Labor
Wages
Salaries
Dispatcher
Answering Service




.

OK I see theft and
Christmas party but
where is the
"take the gc to the strip bar fee"?








.
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Old 02-01-2009, 05:32 PM   #15
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Re: Fun With Estimates!!!


Quote:
Originally Posted by Brock View Post
.
OK I see theft and
Christmas party but
where is the
"take the gc to the strip bar fee"?
Seein' how the IRS doesn't have a line item for greasing palms, I just file it under Marketing.
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Old 02-01-2009, 06:58 PM   #16
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Re: Fun With Estimates!!!


Quote:
Originally Posted by Brock View Post
Thats funny! BTW How is it possible to do that kind of work in Maine this time of year. I always thought of Maine being similar to Alaska. What is it like there right now?
Anything is possible. Not easy but possible. A typical winter in northern maine gets around 20' of total snow. Temps anywhere from -30 to 25. When its below -10 we usally won't work outside. Winters are rough here. The first 5 or 6 years I was in buisness i only had work about 7 months out of the year. mmmm... Makes me remeber mac and cheese. Needless to say it was hard times. Alot of guys up here will do it for a summer than give up. with customers like these, I sometimes wish I did, lol
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Old 02-01-2009, 07:03 PM   #17
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Re: Fun With Estimates!!!


Quote:
Originally Posted by Winchester View Post
Give him the number for a company out here. I bet that 18k turns into 30-40k minimum
I'm sure it would, I think were I live is one of the cheapest places around. My cousin is a contractor in new york. He makes in a month what I do in a year!
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Old 02-03-2009, 08:20 PM   #18
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Re: Fun With Estimates!!!


Seems $18,000 is cheap for any size addition.
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Old 02-03-2009, 08:49 PM   #19
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Re: Fun With Estimates!!!


I'll do a 4ft x4ft addition for 18,000
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Old 02-03-2009, 10:06 PM   #20
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Re: Fun With Estimates!!!


No 18K is a power room with Owner supplied fixtures.
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