Is their a perfect answer for the question "how much is it going to cost"?

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Electrical Student

Electrical Student

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North East Philadelphia
Is their a perfect answer for the question "how much is it going to cost"? I often get calls from home owners who have an idea of what they need and they want a ball park price over the phone before i come out. I try to not give prices until i have seen the job but more and more people almost demand a base price. Some jobs are easy to call others not so much. I don't give prices over the phone sounds rude and hasn't worked. Neither has high balling it. So i ask what is your general response to this question?
 
If you ask the right questions you can ballpark a figure. Sometimes the homeowner wants me to come out and look at it. If the job is small I just tell them it isn't worth my time to drive there as the job won't take much longer.

I also remind them that a firm price is hard to give.
 
Dennis Alwon said:
If you ask the right questions you can ballpark a figure. Sometimes the homeowner wants me to come out and look at it. If the job is small I just tell them it isn't worth my time to drive there as the job won't take much longer.

I also remind them that a firm price is hard to give.
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This is the perfect answer. Asking questions is the key.
 
Get pertinent info from them on the phone then answer "with what I understand of the application these generally run $XX to $XX and again this is if [restate your understanding]". Make note of this to save for the particular project history, you may consider tracking these type calls altogether so you know your success rate here.
 
Electrical Student said:
Is their a perfect answer for the question "how much is it going to cost"? I often get calls from home owners who have an idea of what they need and they want a ball park price over the phone before i come out. I try to not give prices until i have seen the job but more and more people almost demand a base price. Some jobs are easy to call others not so much. I don't give prices over the phone sounds rude and hasn't worked. Neither has high balling it. So i ask what is your general response to this question?
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One thing you learn after dealing with customers for many years is, they don't like the unknown, just about everyone lives with tight budgets today, and giving them a firm price is an easy task once you look at the project and use your estimating experience to work up a profitable figure, or invest in some estimating systems, and price book aids. We have job actuals records that date back many years, and they help guide us thru estimates, even service calls can be priced with service pricing software for on the spot quotes, in my area, just about every company doing service calls is using some type of book pricing, and they seem to be the guys doing better in this rough market.
 
Electrical Student said:
Is their a perfect answer for the question "how much is it going to cost"?
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How about this: "It is going to cost $X.XX for me to come to your house to investigate the problem. If you agree to my staying and doing the work, that cost will be removed from the final bill."
 
charlie b said:
How about this: "It is going to cost $X.XX for me to come to your house to investigate the problem. If you agree to my staying and doing the work, that cost will be removed from the final bill."
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I can't really do that because i advertise free estimates. I think the questions are definitely key, but the H.O. doesn't always know all of the variables. A series of questions prepared for common jobs would be great but time consuming to get ironed out. I am thinking about just trying to give an hourly rate in this situation...
 
Sometimes an estimate isn't an estimate but a valentine.

Sometimes an estimate isn't an estimate but a valentine.

I couch my "estimates" with phrases like "about" or "last one I did was" or "between one low and one astronomical price. Sometimes I use the ol "arm and a leg" or "first born" with a pregnant pause. Thats how I got my first wife. It is what they expect. They go through a range of emotions realizing they are talking to someone that is telling them what their brain is saying.
I end with I can't give you a more accurate estimate without looking at the project. That opens the door for you to negotiate.

If you advertise free estimates, (big mistake), you have met your obligation.

I get one or two every couple of years that are deceitful in there presentation of what they want.

Like I just need a circuit outside. (Its for the new in ground pool).

I need someone to get power to my dryer (there power has been shut off).

I have a store could you give me a square foot bid? Its a gas station.

Recently I had "I need my meter fixed". Someone had replaced the old 60 amp panel with a 200 amp leaving the service wires laying in the bottom of the panel. Ran new wire, wrong size/type to the stove & dryer. Added a new a/c and laundry room. Misswired all the outlets (every one) changing them to grounded outlets from non grounded outlets AND reversed the neutral & hots (you think they would have gotten one right by mistake). Put a new roof on and new windows in, ALL without permits.
I got my permit to reconnect the power fixed what I could. Gave them a bill they sicked the dog on me, called me up and swore at me for 30 minutes WITHOUT reading the bill, which was itemized. Then said the labor rate was more than he made in an hour , wanted to have intercourse with me and hung up.
Sometimes an estimate isn't an estimate. Some people just want free work, and oh yea free parts too.

They even demanded there parts back I replaced and told me I had to come back when there heroin addicted son put in the vent over the stove. Sometimes karma just works for you.:)
 
Phone quotes are all about price. If you give a ballpark price on the phone, they hang up and call the next guy for a lower price.

IMHO free estimates only work for people with wicked sales skills (as in---you can sell a job at 35% profit because you're great at sales). For the average tradesman it's a loss that very few calculate. Free estimates work when clients come to your business, or when there is a large markup. In the average electrical contracting business where profits range from -5% to +5% free estimates are a loser.
 
Put it back on them.
"Half the jobs we did over many years that were similar to this one took between 2 and 5 hours. "

Of course, the wider you make this 3 hour interval, the less value it is to them.

If you give them a quote over the phone they will have minimal time and effort invested in your particular company, so don't do it.
 
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If you say, "from $200 to $500 depending on what I find" they only hear $200.
The free quote is at the job you have prequalified on the phone and are ready to do the work now with stock materials.
 
Sparky555 said:
Phone quotes are all about price. If you give a ballpark price on the phone, they hang up and call the next guy for a lower price.
In the average electrical contracting business where profits range from -5% to +5% free estimates are a loser.
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For the most part you are exactly right, free estimates are a waste of time. The idea is to know which customers are worth spending time with.

A customer calls up and wants a basement wired and he has a date that he would like the project started, he already has a buiding permit and some of the sub contracts hired. That's the guy I want to talk to and will jump in the truck and head out to give an estimate and try to sell a job.

Customer calls up and just trying to get some ideas and maybe the job will get started this summer. Give a high ball park on the phone and if you ever here from him again that's great but don't count on it.

You can't sell at job to someone that doesn't know what or when or if. If they have made some sort of commitment to the project they are much easier to deal with.
 
"How much is it going to cost" depends on what they're asking about.

New house? I need a set of detailed electrical plans. Not floor plans.... electrical plans.

Service call? $xx to come out and spend an hour tracking the problem down. After that, it's $yy per hour plus parts.
 
Electrical Student said:
Is their a perfect answer for the question "how much is it going to cost"? I often get calls from home owners who have an idea of what they need and they want a ball park price over the phone before i come out.
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Okay, I've thought about it, and I'm ready to answer. I'm sure I've used just about every response possible over the years. Some jobs can be guesstimated easier than others, but the real best answer is:

"If you're going to choose the contractor you use to wire your home (not house) based on a number given to you over the phone, I'm honestly not interested in bidding on it. There are too many important details of the job, not to mention the qualifications of the company and the individuals who perform the work."

Sumpin' like that.
 
I tell them that it's almost impossible to give an accurate price over the phone and that I'd really have to take a look at the job. If they say no thank you then I know they were just price checking, and wouldn't have used me anyway.
I have given prices out over the phone before and most of the time I get screwed, so I'll never do that again. Once you give a customer a price its hard to get that out of their head, even if you call it an estimate they will not be happy with anything over that price. At least this is what I've found.
 
we will not give an estimate over the phone under any circumstances.

i usually know what its going to cost before i get there, but you have to be in front of the customer to make the sale.
 
I gave what I considered to be a fair estimate for what was about four hours of work, including the parts run, and getting the permit, as well as being present during the inspection. The price I gave was extremely fair, and I could go no lower without cutting my own throat. I assume she found someone cheaper, so good luck to them. I have to set my own price, and if people can't afford it, that is their issue, as there are plenty of handymen willing to do the work much cheaper, so let them take it, and when the work has to be redone, the customer will realize the real cost of the work, and how much cheaper it would have been to here an EC. Not to say all handymen are not good at electrical work, but they probably charge what they are worth as well.
 
Electrical Student said:
I can't really do that because i advertise free estimates...I am thinking about just trying to give an hourly rate in this situation...
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These do contradict it's very common to have a "service rate" for site visit trouble-shoot & design (if needed), but you won't be able to advertise free estimates. On the phone you could say $250 +/- 30% based on conversation and if they aren’t willing to hire you from this offer your service, then if hired account this service to adjust the total. (This method for service work only of course not wiring a building)
 
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LarryFine said:
Okay, I've thought about it, and I'm ready to answer. I'm sure I've used just about every response possible over the years. Some jobs can be guesstimated easier than others, but the real best answer is:

"If you're going to choose the contractor you use to wire your home (not house) based on a number given to you over the phone, I'm honestly not interested in bidding on it. There are too many important details of the job, not to mention the qualifications of the company and the individuals who perform the work."

Sumpin' like that.
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I would switch the two sentences. Once you say you're not interested, they'll tune you out, either because they realize you don't want the work, or they're mad at you for turning them down and won't hear your reason. Then they won't know that you actually ARE interested, but only if they realize how important the details are to you.
 
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