Charge for estimating? - Contractor Talk - Professional Construction and Remodeling Forum

KellyPainting · 09-25-2006, 07:30 PM

Does anyone charge for estimating? I hear its the new thing... you charge say $25 and take it off the bill if hired.I'm thinking of bulking up my bid proposals with photos and such...... Sounds pretty good?
your thoughts......

And while your here... I'm thinking of also adding free switch plates for all interior work done... I can by them by the case cheap say..white..almond
and replace them all for peanuts... I think it will be a nice touch..
Your thoughts..........

Thinking of also giving a 10% discount (prefered customer card) to my top clients and family / friends alike....
your thoughts............

Brushslingers · 09-25-2006, 07:54 PM

1 Hell no, runs people off.

2 yup, I close alot of job from little touches just like that, not FREE, but hey.. they hear as free.

3 I give discounts to public service... police, fire, judges, trashmen, etc... thats it. After you count up everyone whos NOT public service... you don't have anything left but doctors and lawyers... heh

Eric S · 09-25-2006, 08:00 PM

Well I'm not a pro painter so I'm not sure of how one in your line of work should approach this issue.

I do a small Handyman operation which sometimes includes interior/exterior paint jobs.

My thoughts on this issue:

If a job is very small I think it's ridiculous for someone to ask for an estimate...like under a hundred for the whole job. I'm not going to do an onsite estimate for small money jobs. If I do a phone estimate I make it clear that I will change the price if the situation warrants before I do any work.

Would you believe that I told one customer that there would be a $45. minimum fee and they asked me to come down $10. for a small Handyman job? They live about 40 miles away!

If not charging est fee-Time and overhead has to be recovered at another job. Otherwise a business owner could have a cap on how many estimates (free) they can absorb without too much loss.

Another possibility is to do your estimate of the customer...getting the sense that they will be too tight? Saying you charge for est may turn out to be useful for you after all.

Can estimate losses be written off as business expenses? If so...why not do that?

Flawless Finish · 09-25-2006, 08:19 PM

1. I don't charge and don't think I ever will. I personally like going out giving estimates and selling myself and services. I guess my opinions would change if I was in the yellow pages and had people calling to just get a price on a job they will never have done.

2. How much can you pick them up for? What about different specialty plates. I just did a home that had 6 switches together. I never even figured out what all of them did.

3. If you bid each job individually and not by foot, how do they know your giving the 10% and not just increasing it so that the 10% off does nothing? I always take care of friends and family members and they know it just by the price I give them. I don't need to tell them exactly how much I'm giving them off. Just my thoughts.

mahlere · 09-25-2006, 08:41 PM

Quote:

Originally Posted by Eric S

Can estimate losses be written off as business expenses? If so...why not do that?

because if you don't make the money to cover them, how do you write them off?

mahlere · 09-25-2006, 08:43 PM

sorry, i just thought it was funny that brushslingers quote was originally directed at Eric S, who was the post immediately below brushslinger. No offense, just humerous.

**Teetorbilt** · 09-25-2006, 08:47 PM

All expenses such as mileage and time can be written off.

I consider an estimate fee as a qualifier, I only want serious customers.

Flawless Finish · 09-25-2006, 09:09 PM

Quote:

Originally Posted by Teetorbilt

All expenses such as mileage and time can be written off.

I consider an estimate fee as a qualifier, I only want serious customers.

How can time giving an estimate be written off teetor?

**ProWallGuy** · 09-25-2006, 09:44 PM

Quote:

Originally Posted by Flawless Finish

How can time giving an estimate be written off teetor?

It should be covered by your general overhead. Assuming you know your cost per lead.

I charge for insurance estimates; other than that, I qualify fairly well on the initial contact.

KellyPainting · 09-25-2006, 09:44 PM

right now ALL my work is referals...i get almost every job... but soon I'll be in the yellow pages and stuff getting calls from every quack that wants their toenails painted.........

I bought plates today at 12 cents each individualy.... a case must be very cheap.... not all colors.. just white / black / almond

I like teetors approach.... qualifier.... serious customers only..nice!

cmwacasey · 09-25-2006, 10:44 PM

I do not charge for estimates but I think I need to start charging for insurance estimates.In most cases I turn out to be the lawyer representing the HO,which takes a lot of time.Too many times I have got the HO more money than the insurance company wanted to give and not hear from the HO again.I really do try to help the HO in a time of need and sometimes donot even get as much as a thanks.I personally know people that have contractors come out and do free bids just to get free information.I beleive the box stores charge for estimates.I do not mind giving free estimates but it does bother me to be used.I will always do my best to not take advantage of others.let us all remember to be thankfull when we should.It seems people are forgetting that lately.And no I am far from perfect myself.

**Teetorbilt** · 09-25-2006, 11:17 PM

Flawless, It's your time, gas and vehicle expenses. Write it off.

Depending on the job, I say that it will be $XX to come look at it, prepare an estimate, review the estimate and type up the contract. If the HO decides to dump, I'm at least paid for my efforts.

If the deal goes through, it's rolled back into the final contract. You always pay for what you get.

Flawless Finish · 09-26-2006, 12:27 AM

Quote:

Originally Posted by Teetorbilt

Flawless, It's your time, gas and vehicle expenses. Write it off.

Depending on the job, I say that it will be $XX to come look at it, prepare an estimate, review the estimate and type up the contract. If the HO decides to dump, I'm at least paid for my efforts.

If the deal goes through, it's rolled back into the final contract. You always pay for what you get.

I know I can write off gas and vehicle stuff, but since I don't charge a price to give an estimate, how do I write off my time? Say it takes 2 hours to bid and write up an estimate. Can I write off 2 hours of what I normally charge per manhour. I'm sorry I just can't figure out how to do this.

BMAN · 09-26-2006, 06:44 AM

I charge $25 for insurance estimates only because I dont like doing them. If its water damage I always ask if its insurance and then I tell em about the $25 refundable charge. The reason is this. many simple repairs that are going to insurance never get fixed by a contractor so why should I give an estimate that the homeowner knows ahead if time hes going to do himself but he needs the three estimates to satisfy his insurance.

scottstef · 09-26-2006, 08:52 AM

it depends on what i am doing on weather i charge for an estimate or not. if it is someone that i know and think i have a legitamate shot at getting the job, i don't charge. i usually only charge for my remodeling estiomates- not painting jobs. i have received $400 for one estimate that was i refused to take on the jpb after i had given the woman the estimate. (she changed the terms of the what we had agreed upon when we originally drew up the estimate- wanted me to do a $35K remodel for her with a 3K deposit and the rest of my money coming after she got her loans from the bank. she also wanted to commit loan fraud- so i refused.)

George Z · 09-26-2006, 10:27 AM

Quote:

Originally Posted by Flawless Finish

I know I can write off gas and vehicle stuff, but since I don't charge a price to give an estimate, how do I write off my time? Say it takes 2 hours to bid and write up an estimate. Can I write off 2 hours of what I normally charge per manhour. I'm sorry I just can't figure out how to do this.

In addition to paying yourself for hours worked, you should get an owners salary.
That salary should take into account your estimating efforts.
Or if you want. you can pay yourself commission for selling paint jobs.
If you sell one of three, the commission for the one should pay for the other two.
In other words, if you wear different hats for performing different tasks,
you should get paid for these tasks.
When it is time to hire people to do these tasks, they have a $ value.

fox builders · 09-26-2006, 11:03 AM

I like teetorbilts thinking sure way to weed out tire kickers

Flawless Finish · 09-26-2006, 03:09 PM

Quote:

Originally Posted by George Z

In addition to paying yourself for hours worked, you should get an owners salary.
That salary should take into account your estimating efforts.
Or if you want. you can pay yourself commission for selling paint jobs.
If you sell one of three, the commission for the one should pay for the other two.
In other words, if you wear different hats for performing different tasks,
you should get paid for these tasks.
When it is time to hire people to do these tasks, they have a $ value.

Thanks George for explaining that.

Dave Mac · 09-29-2006, 06:41 PM

I would love to charge for a estimate, but the industry dictates free estimates, and thats what i do ,and unfourtuntly continue to do, but if you figure out how to make it work let me know.

Perfection · 09-29-2006, 06:57 PM

In reference to targeting the higher end work

I have thought about actually advertising with something in it about being expensive but worth every penny...

And charging something like $100 bucks for an estimate which would be refundable once we do your job.