Free Estimates

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ramIII

Member
Location
virginia
We are having a discussion over free estimates around the office. We sometimes will send out one of our service techs to look at a small job. I will usually blend the expense of the service techs time into the price. If we get the job fine,if not fine. The question has arrisen that if we are including in the price the cost of the the service techs labor then we are not truly giving free estimates. I say that because I do not send a bill unless I get and complete the job it is indeed a free estimate. Any thoughts on this.
 

Ponchik

Senior Member
Location
CA
Occupation
Electronologist
It is a free estimate (free to the customer), unless you charge for it. If you build it in to your pricing, then it is not free estimate.

But what in life is free? You pay for everything.

Buy one get one free items, i am sure you know that they are NOT free, the cost of the free item is already built in to the first item that you are buying.
 

ramIII

Member
Location
virginia
It is a free estimate (free to the customer), unless you charge for it. If you build it in to your pricing, then it is not free estimate.

But what in life is free? You pay for everything.

Buy one get one free items, i am sure you know that they are NOT free, the cost of the free item is already built in to the first item that you are buying.

If I do not get the job then wouldn't the estimate be free. I have given them an estimate and have not billed for it.
 

Fishspark

Member
Location
Wisconsin
Occupation
Electrician
The question has arrisen that if we are including in the price the cost of the the service techs labor then we are not truly giving free estimates.

You can call it whatever you want I suppose. Maybe the office employee is free too, until they are paid.
The estimate is actually free until you bill for it, I know of a retail Company we?ve done work for adds 3% on invoicing for things like that or no pays or other unforeseen items. I suppose then it would feel like making money on the free estimates then, ha
http://forums.mikeholt.com/images/smilies/tongue.gif
 
I do not charge for estimates. Unless it is a "punch list" for a realtor when the buyer is looking for leverage.

The overall cost of my time to do estimates is absorbed by the overall price of all the jobs I get and do. Perhaps you are over examining the subject.
 

Daja7

Senior Member
We are having a discussion over free estimates around the office. We sometimes will send out one of our service techs to look at a small job. I will usually blend the expense of the service techs time into the price. If we get the job fine,if not fine. The question has arrisen that if we are including in the price the cost of the the service techs labor then we are not truly giving free estimates. I say that because I do not send a bill unless I get and complete the job it is indeed a free estimate. Any thoughts on this.

Every thing you do, every expense you have is built into your pricing, or should be. there are programs out there that will help you know exactly what your costs are and what you should be charging for your services based on your expenses. The customer pays for everytrhing.
We are flat rate and upfront. no suprises. takes the angst out of these kind of issues.
 
With the increasing use of things like Yelp & Google Business, my phone rings off the wall with folks wanting free estimates for the simplest of jobs.

I now give free telephone estimates based on information I elicit from the caller, and state we will be happy to come to the job site, and confirm the estimate. If the job is much different then described, obviously the estimate is re-done. If they think the next estimate is too high, we charge $150 service call.

In other words, we typically charge for all site visits now. Of course, we make exceptions, such as repeat customers, the very poor, etc. But I was real tired of folks, especially realtors, wanting esimates just as bargaining chips. Or someone getting 5 estimates on a $300 job, and losing it for $50.

Time and gas are too valuable.
 

Fulthrotl

~Autocorrect is My Worst Enema.~
With the increasing use of things like Yelp & Google Business, my phone rings off the wall with folks wanting free estimates for the simplest of jobs.

i had someone once call up, wanting a price to put a outlet in a wall,
where there was another one on the same wall, other side.

i said $70.... there was a pause, and then she said ok, but i'm going to
get two other bids before i award this to you..... she actually used
the word "award".

i was a bit incredulous... i asked "are you trying to find someone who'll
do it for $68? there aren't many dollars left before zero."

i suggested she get *three* more bids, and pick from one of those.

between angies list, craigs list, home dipsnit pimping tradespeople,
and eLocalelectricians, i'm done with racing to the bottom of the barrel.
 
i had someone once call up, wanting a price to put a outlet in a wall,
where there was another one on the same wall, other side.

i said $70.... there was a pause, and then she said ok, but i'm going to
get two other bids before i award this to you..... she actually used
the word "award".

i was a bit incredulous... i asked "are you trying to find someone who'll
do it for $68? there aren't many dollars left before zero."

i suggested she get *three* more bids, and pick from one of those.

between angies list, craigs list, home dipsnit pimping tradespeople,
and eLocalelectricians, i'm done with racing to the bottom of the barrel.


Mental Note to self: If in the above situation, remember to start off by saying, "Well, since I'm here now, I can do it for $70.00", "If I have to come back another day to do the job I would have to charge you $225.00"
 

Ponchik

Senior Member
Location
CA
Occupation
Electronologist
I ask questions over the phone try and see if they will give me a ball park as to how much they want to spend on their project.

Some people don't have any idea how much things cost. For some spending $200 on service is like spending $20K.
 
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