sorry, i'll check the shop tomorrow...i think i might have a couple...everyone dropped P&S recently...back to leviton....
Charging for estimates is not working!
- Thread starter zappy
- Start date
- Status
sorry, i'll check the shop tomorrow...i think i might have a couple...everyone dropped P&S recently...back to leviton....
Rewire
Senior Member
- Location
- Lake of the Ozarks
You are being "invited" into their "showroom" as visiting salesman.
along with 3-5+ other salesmen...
the point being there is a direct cost to giving an estimate....giving free estimates places that burden on your paying customers...this is regardless of whether you are a 1 man shop or a 10 man shop...
The showroom has to be paid reguardless....So if you can get the customer to rent it for 30 minutes, more power to you, but my customer will not do that.
besides, if they visit my "showroom" they pay to get there...shouldn't they pay for me to come to their showroom?...especially, when I have the overhead of my own 'showroom' to already cover?
cant disagree with you, but consider this, If you make a internet purchase instead of a local purchase, do you stop driving on the local streets since you didnt pay the sales tax? No, the guy that made the local purchase paid it for you.....wrong?
Really it doesnt matter, charge if you think you need to,It's America....but not me..
bradleyelectric
Senior Member
- Location
- forest hill, md
No, you should still pay. That is the way they want it and noone wants to change that culture. Ok, a few do
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peter d
Senior Member
- Location
- New England
Teaspoon
Senior Member
- Location
- Camden,Tn.
Free Estimates are part of doing Business.We can't price a job with-out looking at it,
Can't get the job without an estimated price. Just has to be figured as overhead.
Can't get the job without an estimated price. Just has to be figured as overhead.
jmsbrush
Senior Member
- Location
- Central Florida
Me personally, I'm trying to emulate the most successful contractors around the nation. Which are the Franchise groups. I can not afford to join at this time. I do know enough about how they work that I can use allot of there ideas.
Many people are looking for the lowest price no matter what. You could tell them $15.00 dollars and they would want you to do it for $5.00
These are not the customers we want.
Point is. We are taking our business to them, They are not coming to our business, we are taking our $50,000 truck to there house. With our knowledge and training.
Electricians as a whole do not know what they are worth. I think we take for granted what we know. We have done it so long its like second nature to us. Its easy!
I learn lessons with my helper all the time. I get to really see how much I do know. It didn't come over night but its there now.
So I charge for that knowledge.
.A quote from Charlie Greer " I can get the the guy down the street to do it for $50.00! Sir that's every reason why you should hire me!"
IF there's 5 contractors in town an they all charged $59.00 just to come out
Then everything would be just great!
Point is, Charge for your time. You deserve it!
Many people are looking for the lowest price no matter what. You could tell them $15.00 dollars and they would want you to do it for $5.00
These are not the customers we want.
Point is. We are taking our business to them, They are not coming to our business, we are taking our $50,000 truck to there house. With our knowledge and training.
Electricians as a whole do not know what they are worth. I think we take for granted what we know. We have done it so long its like second nature to us. Its easy!
I learn lessons with my helper all the time. I get to really see how much I do know. It didn't come over night but its there now.
So I charge for that knowledge.
.A quote from Charlie Greer " I can get the the guy down the street to do it for $50.00! Sir that's every reason why you should hire me!"
IF there's 5 contractors in town an they all charged $59.00 just to come out
Then everything would be just great!
Point is, Charge for your time. You deserve it!
i'd be more inclined to agree with people weren't getting 5 estimates for a $400 job...
powerslave
Senior Member
- Location
- Land of Lincoln
"Yes, hello I'm getting estimates to change a GFCI receptacle in my kitchen. I have already gotten two and I need one more. Can you come out and give me a free estimate?"
bradleyelectric
Senior Member
- Location
- forest hill, md
When you give an estimate do you usually have the job before you leave the persons house? Do they already have other estimates? Do they tell you they are getting more estimates and will call you?
Mr. Wizard
Senior Member
- Location
- Texas
"Yes, hello I'm getting estimates to change a GFCI receptacle in my kitchen. I have already gotten two and I need one more. Can you come out and give me a free estimate?"
Reply - "I can give you an estimate over the phone. You're looking at somewhere between $75.50 and $800.00. I'd be happy to come give you a quote for the work. The charge for a quote usually runs $75.50, and if you decide to use my sevices, I'll deduct the cost of the quote from the overall cost of the job."
"Yes, hello I'm getting estimates to change a GFCI receptacle in my kitchen. I have already gotten two and I need one more. Can you come out and give me a free estimate?"
I tell these type customers right up front, "if your looking for the lowest price, Im not your guy"....when I say that, they usually soften up, and respect me a bit more I think. Once in a while they will bow up and bow out but rarely....and if they do, that's not the customers I want and I go on down the road.
And I've also told them on occassion when I learn they are getting multiple estimates. "Im sorry we dont play that game just so you can get the (low price), if you want references, I can supply you with them. And explain that most all of our customers are aquaintences or we have been recomended by someone. Most all resi jobs for us are either circuit additions and services. And all attics jobs are T/M end of story. We will not bid a attic. We do a lot of services and those are very repetitive and I can give a range estimates really quick.
Here's how I think....there are "x" amount of "demand" for EC's from customers, kinda like so many man/hrs of demand..... and there is "x" amount of EC's.... wich is the supply.... one of which is me. So its math to me..
So I figure if I turn down these type of jobs, they are going to tie up another EC getting it done anyway. So while that EC is busy with this "not so premium" customer, I'm available for the next premium customer when he calls, because the other EC is busy. This has paid off for me, cherry picking my customers and jobs, if you will.
Only thing I hate is when I get a customer in which we have been recomended from a regular client of ours., and its a job I really dont want. Doesnt happen all of the time but, I take it anyway ....to make my regular client happy. That's customer satisfaction IMO....I dont want to break that recomendation chain.
So with me, estimates are a range and they are free, they are scheduled on my convienence but they are free. I do some quotes but not many.....most all is T/M and I love it.....
Fulthrotl
~Autocorrect is My Worst Enema.~
- Occupation
- E
if i charged for estimates, honestly, i don't think i'd *have* any paying
customers.
today i went to a customer's building, and looked at a situation they had
a problem resolving, and i can resolve it for 10% of the price they were
given. that price they were given was a "free estimate".
so was mine. i've got an hour and a half in value engineering on this, it'll work,
it's code legal, but a bit unconventional.
the other guy? after looking at his plan, he'd make about $24,000 on 20
hours labor.
i'll work one day, i should clear about $6,500, but it'll be a long day, and
i'm gonna have to eat that hour and a half.
and then the other guy can post on MH about how he got shot out of the
saddle, by some lunatic who bid the job at 27% of his bid.
- Location
- Massachusetts
That is part of every day life. When we shop at a store we pay for the store to advertise for new customers that have not spent a dime with that store. It is hardly unethical or immoral.
All I am saying is things are not as black and white as you try to present them. :smile:
if i charged for estimates, honestly, i don't think i'd *have* any paying
customers.
today i went to a customer's building, and looked at a situation they had
a problem resolving, and i can resolve it for 10% of the price they were
given. that price they were given was a "free estimate".
so was mine. i've got an hour and a half in value engineering on this, it'll work,
it's code legal, but a bit unconventional.
the other guy? after looking at his plan, he'd make about $24,000 on 20
hours labor.
i'll work one day, i should clear about $6,500, but it'll be a long day, and
i'm gonna have to eat that hour and a half.
and then the other guy can post on MH about how he got shot out of the
saddle, by some lunatic who bid the job at 27% of his bid.
this is all well and good...but think in terms of the resi service guy...average invoice is $500....it costs, in real dollars, $50 to give an estimate (by the time you pay for the advertising, time to give the estimate, fuel, etc - and i would argue that on average this price is low)...and you close 50% of your calls...
so for every $500 job, $100 of that goes to giving the 2 estimates required to get that job...
so for every job you do, you need to charge an extra 20% to cover the cost of the estimates.
they are when you consider apples to apples...estimates really aren't overhead, they are direct costs...call a car dealership and ask them to bring cars to your house for you to maybe purchase...call the supermarket, or wal-mart, or any other retail store that guys want to compare us to, and ask them to send someone to your house so that you can maybe buy something from them...
your shop, your office staff, your vehicles, etc are overhead...the actual cost of estimates really isn't overhead (though we all lump it in there- then wonder why we didn't make the projected 20% NET profit
) it's really a direct cost, specific to each estimate.- Status