Yes free estimates on residential can have a major effect on the bottom line, 90 minutes of overhead and operating expenses, can cost plus or minus $ 180. Throw that much on the street a few times a week, and you may reach the bottom in no time at all.
Free Estimates?
- Thread starter Benton
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Yes free estimates on residential can have a major effect on the bottom line, 90 minutes of overhead and operating expenses, can cost plus or minus $ 180. Throw that much on the street a few times a week, and you may reach the bottom in no time at all.
readydave8
re member
- Location
- Clarkesville, Georgia
- Occupation
- electrician
It depends.
I try to hint over the phone that the cheapest bid may not be the best bid.
If it seems like a slim chance of a good profit I may still go but only convenient to my schedule, sometimes say I'll call them when I'm in their area.
But it can be a good way to generate leads, sometimes just having my truck in their driveway will lead to work for a neighbor.
I try to hint over the phone that the cheapest bid may not be the best bid.
If it seems like a slim chance of a good profit I may still go but only convenient to my schedule, sometimes say I'll call them when I'm in their area.
But it can be a good way to generate leads, sometimes just having my truck in their driveway will lead to work for a neighbor.
tryinghard
Senior Member
- Location
- California
I think this is just a business plan item, if you give these track em for a strech of time like a year and make addjustments according to the results.
stevenje
Senior Member
- Location
- Yachats Oregon
tryinghard
Senior Member
- Location
- California
This started hapening years ago, but I haven't seen it for a while.
Now you download and print them yourself.
Either way it costs you for the printing.
Some plan sets I have recieved were 4" in diameter for the full sets.
tryinghard
Senior Member
- Location
- California
stevenje
Senior Member
- Location
- Yachats Oregon
That's pretty amazing! Many years ago I worked on a new project (50,000 sq/ft) for a large defense contractor and there were 35 pages of just electrical prints. Layers upon layers of different electrical systems. Interesting project to work on.
readydave8
re member
- Location
- Clarkesville, Georgia
- Occupation
- electrician
there was a commercial on tv last night, a large plumbing company was offering a residential "tuneup" for $79, includes small adjustments (faucet washers?) and recommendations.
I wonder how many houses they go to and don't recommend expensive work?
So I guess some of the flat-rate electrical contractors are doing something similiar, instead of going out for free estimates on little stuff, offer an evaluation of electrical system, maybe tighten lugs in panel as part of the deal. And give a free estimate on original request. And suggest further work, maybe even a surge suppressor if the house doesn't need anything else.
I wonder how many houses they go to and don't recommend expensive work?
So I guess some of the flat-rate electrical contractors are doing something similiar, instead of going out for free estimates on little stuff, offer an evaluation of electrical system, maybe tighten lugs in panel as part of the deal. And give a free estimate on original request. And suggest further work, maybe even a surge suppressor if the house doesn't need anything else.
This is a loss-leader. It works when the person doing the tune-up is skilled at sales. The main difference is that it starts with a $79 fee, not free.
We just bid a job where the GC provided a link to the drawings which we uploaded and set them to the reprographics company to be plotted and delivered. That was over $800. We converted the pdf's to TIF's in-house to avoid the conversion fees, which took one estimator all day to do.
We bid the job which took 4 estimators a week to take off. That estimate probably cost us $6-7K to perform.
We did not get the job. We move on to the next one.
Overhead..
We bid the job which took 4 estimators a week to take off. That estimate probably cost us $6-7K to perform.
We did not get the job. We move on to the next one.
Overhead..
walkerj
Senior Member
- Location
- Baton Rouge
My neighbor/good buddy is our estimator and this is one of the things that raises the stress level very high on the bigger jobs.
It is a huge let-down to spend all this time and paper for no reward.
bradleyelectric
Senior Member
- Location
- forest hill, md
I believe the OP was referring to free estimates for residential service work as is the norm when it is brought up. There is a big difference between spending $75. to bid a $300 job and $7k to bid a $1mil. job isn't there?
laketime
Senior Member
Yeah one your out $75 and the other your out $7k :roll:
It's the risk reward concept. Applies to both projects in our business as I see it.
readydave8
re member
- Location
- Clarkesville, Georgia
- Occupation
- electrician
right, turn that free into $79 and the possibility of more work. and cull out window-shoppers, only offer free estimate if the buy the $79 evaluation.
I usually give free estimates but then again I have lots of free time.
bradleyelectric
Senior Member
- Location
- forest hill, md
The way I see it to give a free estimate that costs 25% of the value of the job doesn't make a lot of sense. To give an estimate that costs nearly 1% of the job is a little easier.
bradleyelectric
Senior Member
- Location
- forest hill, md
What if you spent that time working on marketing or salesmanship?
readydave8
re member
- Location
- Clarkesville, Georgia
- Occupation
- electrician
Mostly because I'm lazy.
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