? About Quoting Jobs For Next Spring

 
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Old 11-15-2007, 06:12 PM   #1
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? About Quoting Jobs For Next Spring


I have a had a few request over the last week for some fence/deck jobs for next spring. Ive never quoted anything that far in advance before. I see all sorts of issues with design changes over the winter, having a quote lying around for six months, getting them to commit so far in advance (or do i try?), changes in material prices. I really had not anticipated the calls this week. Any tips on assuring that these jobs materailize when spring arrives?

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Old 11-15-2007, 06:17 PM   #2
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Re: ? About Quoting Jobs For Next Spring


Even if your not, tell the customer that this is normal for you to book early, and that you have a busy spring ahead that is filling up fast. Give them a quote subject to change due to material fluctuations, and ask for a 10% scheduling deposit.
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Old 11-15-2007, 06:20 PM   #3
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Re: ? About Quoting Jobs For Next Spring


I think you answered your own question. Don't bother, unless you can be absolutely sure that you will get the job next year. If you do make sure they are aware that your estimate could change somewhat.
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Old 11-15-2007, 06:26 PM   #4
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Re: ? About Quoting Jobs For Next Spring


Quote:
Originally Posted by ron schenker View Post
I think you answered your own question. Don't bother, unless you can be absolutely sure that you will get the job next year. If you do make sure they are aware that your estimate could change somewhat.
I strongly disagree, unless you can say 100% that the customer will be waiting for you in the spring, you need to get some sort of small commitment. Because between now and spring that customer could say, "maybe we don't need that fence after all" "maybe we should buy a boat instead of a new deck" etc etc etc. My siding jobs generally get sold 3-4 months out at a minimum and its very important to get commitments as soon as possible.
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Old 11-15-2007, 07:08 PM   #5
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Re: ? About Quoting Jobs For Next Spring


Get the deposit and tell them the material prices may/will change.
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Old 11-15-2007, 10:53 PM   #6
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Re: ? About Quoting Jobs For Next Spring


Quote:
Originally Posted by Patrick View Post
Even if your not, tell the customer that this is normal for you to book early, and that you have a busy spring ahead that is filling up fast. Give them a quote subject to change due to material fluctuations, and ask for a 10% scheduling deposit.
That's good advice, there's no problem with booking 3-5 months in advance. If the bid's accepted, take the job! I'd go one further and draw up a contract based on the bid price. Include the following items in the contract:
- your approximate time frame for starting construction,
- your payment schedule, (X% at time of contract signing, for instance - I'd stay at 10% or below for the commitment payment unless you're a very established company)
- an option to increase job price based on rising material prices,
- customer's option to cancel contract and get $X (0-100%) money refunded if material costs raise the price of the job above $X

Good luck!

Mac
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Old 11-16-2007, 12:03 AM   #7
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Re: ? About Quoting Jobs For Next Spring


for major repair, I like to get a 500 non refundable deposit. decent chunk to feel them & out, plus if they back oit its a nice "tip" for me.

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Old 11-16-2007, 06:45 AM   #8
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Re: ? About Quoting Jobs For Next Spring


All my estimates are void after 30 days. I tell them that this is the price now & I will need to re-estimate it again in the spring, due to possible increased material costs etc.
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Old 11-16-2007, 09:59 AM   #9
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Re: ? About Quoting Jobs For Next Spring


Quote:
Originally Posted by BuiltByMAC View Post
That's good advice, there's no problem with booking 3-5 months in advance. If the bid's accepted, take the job! I'd go one further and draw up a contract based on the bid price. Include the following items in the contract:
- your approximate time frame for starting construction,
- your payment schedule, (X% at time of contract signing, for instance - I'd stay at 10% or below for the commitment payment unless you're a very established company)
- an option to increase job price based on rising material prices,
- customer's option to cancel contract and get $X (0-100%) money refunded if material costs raise the price of the job above $X

Good luck!

Mac
I agree with all of this, only thing I'd add or change is, quote the job as if your doing it now, factor in whatever it is you feel you need to factor in. materials need to be paid in full now, and just take delivery of the stuff in the spring. Now you can take this a step further, shift season 180 degrees, spring and summer bookings, quote and take all your deposites now, put into escrow, Pay for the stuff when you take deliivery of it in the fall and winter when you need it
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Old 11-16-2007, 10:13 AM   #10
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Re: ? About Quoting Jobs For Next Spring


Quote:
Originally Posted by Chris G View Post
I have a had a few request over the last week for some fence/deck jobs for next spring. Ive never quoted anything that far in advance before. I see all sorts of issues with design changes over the winter, having a quote lying around for six months, getting them to commit so far in advance (or do i try?), changes in material prices. I really had not anticipated the calls this week. Any tips on assuring that these jobs materailize when spring arrives?
I would hope that you already had verbiage in your contract that would address your concerns - design changes are treated as change orders, changes in material prices you use an escalation clause, your deposits should be non-refundable, your quotes should be good for only a certain amount of time already.

The process should always be the same, get a deposit, sign the contract. See you in the Spring or see you next week.

It sounds to me like you just need to tighten up your business processes a little bit and get this all covered, then you're good to go no matter what. It's easy to fall into the trap of just doing things as needed instead of trying to cover what's needed for how we do business today and how we might have to do business down the road. This can be a good thing for you, since it can force you to get your systems up to date.
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Old 11-16-2007, 05:10 PM   #11
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Re: ? About Quoting Jobs For Next Spring


Chris, all you need to do is buy a franchise from me and then I'll tell you how to handle the situation.(LOL)
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Old 11-16-2007, 08:06 PM   #12
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Re: ? About Quoting Jobs For Next Spring


Quote:
Originally Posted by BuiltByMAC View Post
That's good advice, there's no problem with booking 3-5 months in advance. If the bid's accepted, take the job! I'd go one further and draw up a contract based on the bid price. Include the following items in the contract:
- your approximate time frame for starting construction,
- your payment schedule, (X% at time of contract signing, for instance - I'd stay at 10% or below for the commitment payment unless you're a very established company)
- an option to increase job price based on rising material prices,
- customer's option to cancel contract and get $X (0-100%) money refunded if material costs raise the price of the job above $X

Good luck!

Mac
Exactly what I would do. Except no cancel option
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