Reasons For Not Giving Free Estimates

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iwire

Moderator
Staff member
Location
Massachusetts
electricmanscott said:
Yep, and an "Ultramegabob" is wayyyy beter than a plain old "Bob" anyday!! :grin:

Of course, that is clear. Ultra-mega is hard to beat. :grin:


For what it's worth I really did not think the BBB was going to make anyone run for cover. :D
 

Thomp

Member
Sparky555 said:
1. Gas is pretty expensive.

2. The New Guys advertise free estimates for a year or 2 & then go out of business.

3. Free estimates take a couple hours. I'd rather get paid for those couple hours. If I don't have any work there's always a mountain of paperwork, a truck and garage to clean, or time to enjoy spring, or write stupid things online.

4. If a prospective client gets 3 or more free estimates they'll probably go with the cheapest estimate, or the best salesman. I know I'm not the cheapest & I doubt I'm the best salesman. If I was a really great salesman it would be stupid to be an EC. I could sell $50-100,000 cars on commission.

$65, but if I get the bid it goes into the cost of the job.
 

emahler

Senior Member
weressl said:
May I ask you who signs your 'paycheck'?

why do you ask? do you have some big revelation?

technically, i have direct deposit, so I click my paycheck, front and back, every week...
 
emahler said:
why do you ask? do you have some big revelation?

technically, i have direct deposit, so I click my paycheck, front and back, every week...

I think if you do not realize, or fail to acknowledge that your customer pays you, so you can write a check for yourself, this conversation is pretty much a fruitless excercise.

Of course it would only bear fruit for you not for me.
 

gardiner

Senior Member
Location
Canada
Charging for estimates on residental work might well be the way to go. In many cases the consumer knows that he/she may have to pay estimate charges to look at his/her car, estimate charges to look at his TV or stereo if he goes to a professional. Why not pay for an electrician? I know this might not work in areas that are very depressed or in areas where there are more electricians then the market can bear, but then it might also thin the area down a little.

The big problem will be Mr. Handyman with the "I'll do it for $X, no estimate charge, no permits and no proof I was ever there" How many cars are fixed by some guy out of his house as he will do it for actual time spent on doing the repair or the tv fixed by the neigbour down the street because he is handy that way?
The underground economy may get a boost if you not careful.
 

emahler

Senior Member
weressl said:
I think if you do not realize, or fail to acknowledge that your customer pays you, so you can write a check for yourself, this conversation is pretty much a fruitless excercise.

Of course it would only bear fruit for you not for me.

about 10 yrs ago, i was at a conference...i remember meeting a plumber who specialized in residential service...at the time he had about 10 trucks and did about $2.5mil/yr...today he has about 50 trucks and does about $9mil/yr...

he told me, and i'll never forget this, that "the customer pays for everything"

now, your question and point really holds no merit. you are attempting to equate apples and oranges...my customers do not pay me any more than your companies customers pay you...

while it's true that our customers do pay for everything, since we would not be able to afford trucks, benefits, vacations, tools, supplies, etc without them...

it's my job, and your bosses job, to make sure that they get the best ROI they can...whether that investment be labor, tools, equipment, technology, etc...

my initial point, which apparently was missed, is that the investment and the investor do not think alike...

besides, what does your point have to do with whether or not to charge for an estimate?
 

satcom

Senior Member
emahler said:
about 10 yrs ago, i was at a conference...i remember meeting a plumber who specialized in residential service...at the time he had about 10 trucks and did about $2.5mil/yr...today he has about 50 trucks and does about $9mil/yr...

he told me, and i'll never forget this, that "the customer pays for everything"

now, your question and point really holds no merit. you are attempting to equate apples and oranges...my customers do not pay me any more than your companies customers pay you...

while it's true that our customers do pay for everything, since we would not be able to afford trucks, benefits, vacations, tools, supplies, etc without them...

it's my job, and your bosses job, to make sure that they get the best ROI they can...whether that investment be labor, tools, equipment, technology, etc...

my initial point, which apparently was missed, is that the investment and the investor do not think alike...

besides, what does your point have to do with whether or not to charge for an estimate?

This is typical, your getting questions from posters that have no direct knowladge of running a service business, but comment on their emotions, and feelings, most work for a pay check, and have the customers view.
 

emahler

Senior Member
satcom said:
This is typical, your getting questions from posters that have no direct knowladge of running a service business, but comment on their emotions, and feelings, most work for a pay check, and have the customers view.

yeah, but it gives me something to do besides beat the dog:D
 

tonyou812

Senior Member
Location
North New Jersey
Not to get in the middle of a "Juicy argument" but I wished charged the one guys house I went to look at today. I had set an appointment with this dude for renovation work on this house and when I get there there is another EC there to look at the house too. And if that wasn't awkward enough this guy(HO) is try to tell me how much things should charge. I don't even know why I stayed but I could have saved myself the hassle if I had charged this guy for his estimate. He definitely would have told me not to bother and would have done me a favor. He was the type with the crusty cigar in his mouth saying things like " I did construction 30 years ago and I know how much this cost, and blah blah blah....
I have realized that being alone, my time is valuable to me and I hate it when I waste it dealing with knuckle heads. I went on a service call Late saturday afternoon and charged the lady 150 $ emergency call fee ( on top of hourly,) wether I fix it or not and she had no problem with it. I should have charged her 150 an hour now that I think about it. I dont think it even would have phased her. She was so happy that her lights were on again I could have gotten a little more i think....Ive never done a emergency call for myself yet so I think a surcharge for the prompt service is nessacary.
 

Sparky555

Senior Member
weressl said:
I'll remember to charge my prospective employer next time when I go for a job interview.:smile:

To equate it to residential service...

Would you go on ten free 2 hr. interviews to secure 20 hrs. of work EVERY WEEK as a career?

Dave
 

aline

Senior Member
Location
Utah
Three more reaons for not giving free estimates.

1. Traffic Jams
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2. Traffic Jams
TrafficJam2.jpg


3. Traffic Jams
TrafficJam3.jpg
 

tmbrk

Senior Member
Location
Illinois
Sparky555 said:
To equate it to residential service...

Would you go on ten free 2 hr. interviews to secure 20 hrs. of work EVERY WEEK as a career?

Dave

VERY well put.

Again a worker mentality vs. the realities of running a business.

But what do we know. We're not professionals. We're just lowly tradespeople.:grin:
 

emahler

Senior Member
tmbrk said:
VERY well put.

Again a worker mentality vs. the realities of running a business.

But what do we know. We're not professionals. We're just lowly tradespeople.:grin:

some of us are professional lowlifes:D
 

Rewire

Senior Member
Look at Sams Club vs Wal-Mart,Sams Club you pay to get in Wal-Mart is free.Both do great sales but people going to Sams are more likely to purchase but Wal-Mart has more volume.So it is a choice between increasing your possibility of a sale and limiting your customer base or increasing your customer base buy not limiting your volume.
 

emahler

Senior Member
not quite....a better comparison would be if wal-mart actually paid customers to come to the store...by giving free estimates you are paying the customer to allow you to look at the job...maybe not directly, but that's a better equation...

but at the end of the day, what we do is different than the retail/product industry....
 

aline

Senior Member
Location
Utah
Rewire said:
Look at Sams Club vs Wal-Mart,Sams Club you pay to get in Wal-Mart is free.Both do great sales but people going to Sams are more likely to purchase but Wal-Mart has more volume.So it is a choice between increasing your possibility of a sale and limiting your customer base or increasing your customer base buy not limiting your volume.
The difference between Sams Club & Wal-Mart vs contracting is the customer drives to the store. They don't bring the store to you. With contracting we bring the store to the customer. It's the customers time and expense to go to Sams Club and Wal-Mart.

You don't call them up and say I'm thinking about buying some stuff from you guys. Can you bring it out and show it to me and tell me how much it will be. I'm not sure what I want so can you bring extra stuff so I can get several prices on different things I may want. If you're the lowest I may even buy something from you.

It would be different if the customers brought there homes to the contractor to get estimates.

If you're running a contracting business correctly the customer pays for everything including the so called free estimates. The question is which customers pay for the estimates. Just the ones that buy from you or all the customers you visit.

Charging for estimates means everyone pays for the estimates so you don't have to pass on the expense to the customers who hire you, saving them money.

It really comes down to one thing. There is no such thing as a free estimate. The customer always pays.

emahler said:
about 10 yrs ago, i was at a conference...i remember meeting a plumber who specialized in residential service...at the time he had about 10 trucks and did about $2.5mil/yr...today he has about 50 trucks and does about $9mil/yr...

he told me, and i'll never forget this, that "the customer pays for everything"
 
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