Professional Advice On Quoting A Client

olduser565

Hi Guys,

Thank you for all the great topics on this site. I am however experiencing a particular problem with my ability to present a client with a quote that is structured well enough for the client not to request a "detailed breakdown".

Is there a magic format?

Could anybody help me overcome this problem?

modterry

Are there items the customer may want to cut or shave back? If so, we have bid with mark up and overhead on each category.

I have broken down bids for folks and with margins on categories / I even show my contingency if I have to and it helps the see all the phases of the job and I let them pick what to reduce. I don't reduce the OH or Margin or time for supervision very often.

olduser565

Thanks for the reply - Basically, in the particular case I am referring to, the client has cost concerns, and wants us to give him a detailed breakdown of materials
eg.
33 hollow core interior doors @ $10 each - $330 total.
33 two lever locks @ $5 each - $165 total

I think its very unusual to do something like that or do you find this commonplace? Obviously we have nothing to hide but we do not want to disclose proprietary information.

DavidC

We try to convey that we are delivering a complete package for one price. Our proposal is loaded with details concerning what we will do, how we will do it, what we will use, sometimes allowance items for the client to choose fixtures and the like, what we expect the client to do and a few other things. There is just one price to tell them how much it cost, unless we use allowance items.

We don't normally break down pricing for anyone. That is considered proprietary info. If the bottom line is too much it's back to the drawing board to change the specs.

When you list;

33 hollow core interior doors @ $10 each - $330 total.
33 two lever locks @ $5 each - $165 total

the next question you can expect is how much is the labor. They are most likely looking for targets to get you to shave the price at your expense. Your job is to get what you think you need to do the job right without cutting corners.

Good Luck
Dave

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Handymanservice

$10.00 a door? South Africa sounds like it has some awfully low material prices?

I only detail the rare estimates that we give. Occasionally, our customers will want something that requires estimating, when I do it, I give them full disclosure. I feel like it is the most professional way to present a price and that it shows you are accounting for everything to the penny. Blanket lump sum estimates are always tricky, they never look right to me. A guy tells you your brakes need to be replaced and it is $163.12 and gives you the exact breakdown of materials and labor, someone else tells you $140.00, give or take. Who would you feel more comfortable with?

Do you use any estimation software that itemizes by line? If so, you can do an exact labor, material, mark up by line item. I couldn't imagine they could beat you up on a material price if your doors are only $10.00.

They have to be trying to find a way to get the price lowered and they want you to do all the work, but do it for less money.

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Greg Di

Never break out your price. It's none of their business.

Ask them if when they go to buy a car, if they ask how much the steering wheel costs? They are buying a complete, whole product. Take it or leave it.

I'm telling you. Use car analogies and people understand really quickly. If they continue to push, I guarantee they will be a PITA to work for and you'll probably regret taking the job.

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HSConstruction

I agree with the theory, but the window sticker breaks down the options included. Not that your are told the labor, material and mark-up but the option totals are there.

I did do a full itemized estimate ONCE and will never do it again. The HO wanted to haggle over everything saying I saw the door at Lowes for less. As if I am expected to drive an extra 20 minutes, deal with one register open at 7am, and drive 20 minutes back because it was a few dollars cheaper. Now there is no breakdown just line items and a total bid price, if they need a less expensive option I will tell them where they can shave but not at my expense.

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ottagosoon

Here is the breakdown.

I gave you a quote of $500.00

Breakdown:

Five Hundred Dollars and no cents. I can say it slower if you want
FAAA IVVVV HUN DREAD DOL LEEEERS.

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Can't Say That Here!!!

macatawacab

On a deck for instance, I will list the materials used to help define scope of work and what material is used.
12-4x4x10' PT
20-2x10x14' PT
200sqft TimberTech decking


but the price is material and labor lumped together. Putting it out this way helps me see the estimate on the quote. When they ask me how to take money out of the project is say "how much smaller do you want the deck?"

GregS

I had an idea the other day..

If they want a break down in price, show them the price for each item installed. Make sure that if they are all added up that it totals more than your quote for the entire job at once. Then show them they are getting a discount if doing them all together.

I haven't tried this, but I might for some clients who I think may be a pain when it comes to pricing.

Double-A

Then don't disclose it. Work with your client to meet their budget, but don't allow your client to run your business. If they have a budget for the project, write up a scope of work that meets that budget. If that means they get the lowest cost apartment grade lever locks, then so be it. Use an allowance if needed, but don't give in to the desire of the client to dictate your company's policies.

If they want to collect estimates for whatever reason, that is fine, but be firm that your business doesn't do business on a cost plus basis, and what they are looking for is a cost plus contractor.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Osito

That is how I bid. It's the only way.

Osito

That's the way I bid. What more can they want. More details to pick apart.