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Discussion Starter · #1 ·
I just sent off an estimate to a client, a few minutes later I get a reply from them. "That's about 3000 over what we budgeted for" My question is, how would you guys who have been in the trades longer handle this? Also they are paying 37% and Insurance is paying the rest, if that makes a difference.

I'm in my second year of business and I am just a small company, so haven't had any experience with this. They are wanting me to come down 975.00

The house is a steep two story, and cut up. I feel I gave her my price that I am comfortable doing the job at and making a decent profit. The house was hit by a tornado last fall and had the porch roof repaired not too long ago (nothing fancy). They told me it cost them 10,000 to get it repaired. My estimate for the entire house is roughly 1,300 more than that. Can they really expect me to re-roof their entire house for less than what they paid to have their porch roof fixed?

Any Help Appreciated.
 

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Sounds like they want you to come down their deductible. I would simply say no and talk to them about what that is not going to fly. Also since they are coming back to you they either like you or they can't get others to come down either.
 

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Rookie roofer said:
I just sent off an estimate to a client, a few minutes later I get a reply from them. "That's about 3000 over what we budgeted for" My question is, how would you guys who have been in the trades longer handle this? Also they are paying 37% and Insurance is paying the rest, if that makes a difference. I'm in my second year of business and I am just a small company, so haven't had any experience with this. They are wanting me to come down 975.00 The house is a steep two story, and cut up. I feel I gave her my price that I am comfortable doing the job at and making a decent profit. The house was hit by a tornado last fall and had the porch roof repaired not too long ago (nothing fancy). They told me it cost them 10,000 to get it repaired. My estimate for the entire house is roughly 1,300 more than that. Can they really expect me to re-roof their entire house for less than what they paid to have their porch roof fixed? Any Help Appreciated.
Only you know your profit , overhead , salary etc.. It's a business to make money not lose . Sorry and tell them no . I can't not do job .
 

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Skillman is correct. Ask how they formulated a budget without prices?

The point is it took me a long time to stop negotiating myself out of money. I realize at this point you don't have a long history to sell on quality so have to be somewhat flexible. Learn to tell them no. The sooner the better.
 

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I would explain how insurance works to them. They have agreed to pay their deductible in full first, and then the insurance company has agreed to pay what's left. Therefore, if anyone is to be given a discount it's the insurance company - based on the legal language of the policy.
 

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Not that it should really matter , but do you know if you are inline with the insurance bid? Like other have said I would not lower your price just to get the job. I am sure you bid it for what you figured it was going to take to do the job and MAKE a PROFIT, that is not a dirty word. I guess if you have to explain to them why it is costing what it is and the quality of the job you are doing. Sometimes with a job you have to know when to walk away and usally havng to lower your price is one of them times.
 

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The customers budget is not your concern. What they have said is that they don't want to hire you, so they are not your customer. Work is about you making money not your customers controlling your cash flow.
 

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Is the porch part of the original claim?

Otherwise it shouldn't matter to you. And if it is part of the claim, did the porch eat into your roof budget?

Is the policy ACV or recoverable and the customer doesn't understand?

If you are only scrapping about $975 finance that over 10 months at $100 a month.
 

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Tell them you are already using a sharp pencil but you can meet them half way. 400 bucks isnt really worth losing a job over, but some people just want to feel like they "negotiated" with their contractor. Ill bet you land the job with that strat.
 

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Discussion Starter · #14 ·
Well I talked with the client again and after they had talked with their insurance agent, apparently they had to pay 50% now. They wanted me to work up a 'fake' estimate which would be higher than the original, to give to the insurance so they could get more money from them for the work, yet still pay the original estimate price. I told them i didn't feel comfortable doing that because it sounds a lot like insurance fraud. (probably is) So I told them if they wanted me to do the job I would do it for the original estimate. I'm not desperate enough to gain work by playing dirty. I won't be losing sleep if I don't get this one.
 

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Ive heard that before and I said one time , if thats the way it worked then why wouldnt I just submit a very high bid to begin with and keep all the money?
 

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Some adjusters knock off depreciation for life of original material, also code upgrades may not be covered in the owners policy.

Ask to give a call to the adjust to see how they arrived at that number. Some are cool. You may find out the owner is trying to get you to pay for his deductible. At least you will know.
 

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Do not create estimates like they are asking for. It's illegal. No job is worth jail. However many home owners are confused by depreciation so carefully explain it to them.
 

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I bid out a roof last fall, ranch house with a garage, hip roof. It was like 32 sq of something. Measure out the roof. Go to the truck, write up the bid, put it in a folder with literature of the materials we would be using, the lady comes up to the truck, and I give it to her. She opens it on the spot and looks at it, and goes wow! We thought it was going to be in the $5000 range :eek: I actually started laughing. Then I asked if I could have my folder and literature back, and to call me when they were serious
 

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jlsconstruction said:
I bid out a roof last fall, ranch house with a garage, hip roof. It was like 32 sq of something. Measure out the roof. Go to the truck, write up the bid, put it in a folder with literature of the materials we would be using, the lady comes up to the truck, and I give it to her. She opens it on the spot and looks at it, and goes wow! We thought it was going to be in the $5000 range :eek: I actually started laughing. Then I asked if I could have my folder and literature back, and to call me when they were serious
So how much higher were you?
 
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