Glad I told customer that I charged for estimate

[bjp_ne_elec]

Never really look on Craigslist, but my son found a post for some electrical work and pestered me until I called. It was a post that basically said they were looking to hook up two heaters. Call up and talk to Manager, and she indicates that they already have the two heaters and there is a panel close by. She asks for a price over the phone, and I said I don't give prices without looking at the job. "Well the other Electrician gave me a price over the phone". As soon as I heard that, and after telling me that the Electrician was now 1.5 hours late, I asked if she was all set - and she said she'd be interested in estimate. Well I immediately told her that I'd drive up, but that I got $50 for an estimate, and it would come off the price if they went with my price.

Well go look at the job - it turns out one heater is about 20' from panel. Needs some 1/2" conduit, THHN and a 2-pole breaker. Apartment complex handyman walks me to unit with second heater. Only circuit out there is a 20 amp, and the unit needs a 30 amp. It appears it comes out of one of the units - they have a panel just off the kitchen. Handyman tells me that the unit that is right next door was just moved in to - didn't want to entertain even working a circuit in to closest panel. So the one unit he wants me to pull from is three units away. So the only option is to chase wall on first floor, run out in ceiling, penetrate siding and run 1/2" PVC on exterior. About 100' run.

I give her my price and she says "this won't fly" and proceeds to tell me that guy that took the job over the phone was "going to do it for $200". I proceed to tell her that there is more than that in material. I put out my hand for the $50 estimate fee and she pays it without blinking. I tell her - if you change your mind - here's my card, the estimate and the reciept for $50.

Wondering if the phone rings for a return visit. How about some EC bidding $200 sight unseen.

Sorry for the long post, but curious if others have had similar experience/

 

[macmikeman]

Don't be suprised if she turns you in to the BBB. She is probably burning up that you charged her and the other guy was cheaper. That makes you a rip artist in her eyes. Edit to add: By the way, 10 $50 estimates a day that are all high ain't bad for not putting the tools on........

 

[emahler]

Don't be suprised if she turns you in to the BBB. She is probably burning up that you charged her and the other guy was cheaper. That makes you a rip artist in her eyes. Edit to add: By the way, 10 $50 estimates a day that are all high ain't bad for not putting the tools on........

except.....the average estimate costs closer to $100 when fully accounted for...so it's not a good business plan...

 

[bjp_ne_elec]

except.....the average estimate costs closer to $100 when fully accounted for...so it's not a good business plan...

Yeah - I wouldn't consider that a good wage - and agree with the $100.

 

[Mule]

To me....and, I might be different from the next guy but, estimates are estimates, and quotes are quotes. I give free estimates over the phone to clients and they are always a range, like $300-$500. Quotes are hard ball....like $439...and I always tell the customer if the want a quote, my time to figure the job will inflate the cost. It's their choice.

 

[ramsy]

Mule, thanks for differentiating Quotes from Estimates, I love it.

Never really look on Craigslist, but my son found a post..I said I don't give prices without looking at the job. "Well the other Electrician gave me a price over the phone"

The Craigslist creeps around here demand email responses to brief project descriptions, then selectively reply. Its a buyers market that can exploit the most desperate offer, just like Monster.com exploits the glut of overqualified job seekers with the lowest salaries.

After a professor from a local-university newspaper used my email to pump me for free information, all of these email creeps have giving me visions of internet-sexual predators. Like I'd imagine the pervert predators of Myspace.com and Facebook.com, email RFI questions and representations seem fabricated after they disappear with my expert advice.

 

[jumper]

To me....and, I might be different from the next guy but, estimates are estimates, and quotes are quotes. I give free estimates over the phone to clients and they are always a range, like $300-$500. Quotes are hard ball....like $439...and I always tell the customer if the want a quote, my time to figure the job will inflate the cost. It's their choice.

excellent response. qoute=5 or 10 min, estimate= go look at job= money for time driven + time to figure job. experience + knowledge = money.

 

[growler]

If someone says that they have an estimate from over the phone then why not asked who the contractor is and the amount of the estimate. You can do this in the first 5 minutes, over the phone and not waste time.

You should already have an idea of which companies that you can match or beat and which ones you can't possibly compete with. If the company is a guy named "Joe" then you can't even compete. On the other hand if the company is one of the one's with a double page yellow page add then it's a good idea to go look at the job.

I love to see a Mr Sparky truck leaving a house when I show up or to see a couple of their stickers on the panel. These people already have a good idea of what electrical work cost. :grin::grin:

 

[Power Tech]

I tell the public the estimate is free - The investigation is $120. I give them a complete service call and let them know exactly what they are looking at in writing. By that time you know how cheep they are and if you now want to steer them to the next guy. "There is nothing I can do that sombody else can't do cheeper".

Terry

 

[macmikeman]

except.....the average estimate costs closer to $100 when fully accounted for...so it's not a good business plan...

I just knew it when I was writing that, I was going to take a hit for the $50 and the whole stupid concept of only performing estimates and not actual work was likely to get missed entirely. I agree however that $50 was too low. I know one old guy out in S.F. who borrows the customer's ladders on estimates that this method might be the perfect thing for however....:roll:

 

[luckyshadow]

I just knew it when I was writing that, I was going to take a hit for the $50 and the whole stupid concept of only performing estimates and not actual work was likely to get missed entirely. I agree however that $50 was too low. I know one old guy out in S.F. who borrows the customer's ladders on estimates that this method might be the perfect thing for however....:roll:

If your talking about who I think your talking about not only borrows ladders but works out of a car too.

 

[jeremysterling]

I'm not in business for myself, yet, so I'd like to start wrapping my mind around the concept of budgets, estimates and quotes.

excellent response. qoute=5 or 10 min, estimate= go look at job= money for time driven + time to figure job. experience + knowledge = money.

I think you got this backwards, jumper. Mule is saying that a quote requires in depth investigation and calculation. The quote is the price the customer is going to pay, barring change orders.

I tell the public the estimate is free - The investigation is $120. I give them a complete service call and let them know exactly what they are looking at in writing. By that time you know how cheep they are and if you now want to steer them to the next guy. "There is nothing I can do that sombody else can't do cheeper".

Terry

I like your attitude, Terry. IMO, your's is a professional approach for smaller projects and customers with tight budgets. It seems ethical to call the initial visit to the customer a "service call" rather than call it a "$100.00 estimate."

 

[Besoeker]

Mainly we work in the industrial and commercial sectors.
When we get a request for a quotation it is accompanied by a huge wodge of standard documentation that would take you longer to read than War and Peace.
They all have a clause like "The buyer is under no obligation to accept the lowest or any bid. All cost incurred in the preparation of the bid shall be met by the bidder."
Of course, you know that going in. It's typical for our sector and, even when it isn't spelt out, nobody on either side expects it to be otherwise.

It makes you selective about which jobs you bid and which you decline.

 

[bjp_ne_elec]

If someone says that they have an estimate from over the phone then why not asked who the contractor is and the amount of the estimate. You can do this in the first 5 minutes, over the phone and not waste time.

I did and she wouldn't tell me, as they wanted to see what my price was.

You should already have an idea of which companies that you can match or beat and which ones you can't possibly compete with. If the company is a guy named "Joe" then you can't even compete. On the other hand if the company is one of the one's with a double page yellow page add then it's a good idea to go look at the job.

I've never worked in this area before, so did not understand who my competition was. I'm finding guys are bidding work from 50 miles away these days. Wasn't like that before the economy slowed to it's present level.

 

[bjp_ne_elec]

Don't be suprised if she turns you in to the BBB. She is probably burning up that you charged her and the other guy was cheaper. That makes you a rip artist in her eyes. Edit to add: By the way, 10 $50 estimates a day that are all high ain't bad for not putting the tools on........

Have not had this happen yet, but as a business, how do you respond to something that is pretty much false. Before showing up I made it clear that I required a $50 fee if they wanted me to show up and give a quote (actually what I gave was a quote - as opposed to an estimate). The $50 would be deducted from the quote if they decided to go with my price.

 

[jumper]

I think you got this backwards, jumper. Mule is saying that a quote requires in depth investigation and calculation. The quote is the price the customer is going to pay, barring change orders.

doh!! gotta go back and edit that. thank you,:smile:

 

[macmikeman]

Have not had this happen yet, but as a business, how do you respond to something that is pretty much false. Before showing up I made it clear that I required a $50 fee if they wanted me to show up and give a quote (actually what I gave was a quote - as opposed to an estimate). The $50 would be deducted from the quote if they decided to go with my price.

Your system is quiet fair bjp, it is the same one I use, but $ charge is a bit higher (we pay $2.50/gallon gas today's price). The response you give is the only good one there is..

 

[RHJohnson]

If someone says that they have an estimate from over the phone then why not asked who the contractor is and the amount of the estimate. You can do this in the first 5 minutes, over the phone and not waste time.

Ethics should prohibit asking what someone else estimated. The customer was absolutely correct in not giving out that information.

When a salesman from a supply house would ask what I was paying for something, from another supplier, and he wanted me to buy from him, I would explain the ethics of the situation. If he wanted my business I wanted to know what the lowest price was that he would sell to me - and not give him my business just because he was willing to undercut a supplier that I felt treated me right, and charged me a fair price.

 

[satcom]

(we pay $2.50/gallon gas today's price).

The price of gas, is so small compared to you labor burden, and cost of sending an asset to the coustomer (your equipped van) a few dollars of gas is minor when you consider the $150 or more it cost to make a service call, to give a quote.

 

[JohnE]

Ethics should prohibit asking what someone else estimated. The customer was absolutely correct in not giving out that information.

I agree with that statement. But they would have saved $50 if they had answered.