Do free estimates really bring in work?
No where do I advertise “free estimate.” When I get a request for an estimate it has thus far been thru a word of mouth referral. But, sometimes those referalls are slow in coming, sometimes steady. If I want to grow my business does directly advertising that I offer free estimates honestly do anything towards that end. That is If I did advertise it and put it in my ad and on my van, am I really like to gain substantially more work from doing so? I mean, are free estimates mostly a time waster, or do they generally keep the pipleline flowing in the long run?
OR……(and a big “or” here)……is charging for an estimate a viable route. There is the old psychology behind the thoiught that if someone pays for something they feel they’re actually getting something more concrete, no pun intended.
Thoughts and opinions?
Replies
I think it's going to depend on a number of things
The type of work you do, and how easily it can be 'ball-parked'
What your competition do
The type of people in your area of work
These are for starters, I expect there are more factors.
In my area anybody who tried to charge for estimates would get nowhere
John
I'm fortunate that right now most estimates I give are just so my customers know what the project is going to cost; I do very little competitive bidding.
over 90 % of my work comes from word-of-mouth referrals, and I'm willing to do the smaller jobs some guys don't like doing.
So, altho I do give "free " estimates, I'm also 90+% sure I'm getting the job I'm pricing.
Do people really have an out front charge for an estimate.
I have never seen or heard any one charging for this.
we will do a free ball park. sometimes a free turn key estimate depending on complexity, otherwise some jobs could keep a person busy for days just working up and doing the research for the bid
what do I mean by ball park........... allowances, estimates
I can figure the sq foot price to build something, put a roof on it, and supply vinyl windows. I can ball park oak hardwood floors, or a floor covering allowance of $3 a sq ft. I can guesstaimate a standard toilet, sink and faucet and what standard birch, oak or flat panel oak cabinets cost per lineal ft. Same with formica and granite
but if someone wants me to then bid a house out or a remodel, wher everything is non standard, or one of a kind sinks and faucets, I wont do it for free.
On the other hand, one of the biggest remodelers in the area charges for his estimates, how much......a percent of the final estimate, 5% so the owenr does not really even know what the estimate will cost, and of course the estimate is "free" as it is refunded if he does the job
good tactic, cause Ive actually lost josb to this guy, wiht the onwer saying, well gee Ive already got this much invested in it
and Ive seen jobs not get done , with the owner ubhappy because they had spend so much just on drawings and estimates
so like I said, my ball park is free, and my estimates are free if simple and I can use allowances.
I have never seen or heard any one charging for this.
Most don't, but some do, and I was wondering if there was an advantage in doing so. I can see why you would charge. I mean, you gotta spend gas and time and if it's a big project you gotta really put some time, maybe hours into an estimate that is supposedly "free." I had that happen, few mos ago, large $70K addition. Wanted the job bad so I worked long to give best possible price. Seemed like I was getting it. Week later was told I lost due to someone being substantially less. I got nothing out of it. Fortunately, big estimates are few and far between, but I can see why one would argue for a modest charge to hedge against loosing totally on the roll of the dice. If at first you don't succeed, try using a hammer next time...everything needs some extra persuasion from time to time. -ME
For what kind of work?
I won't pay for an estimate of cost, specially for a "basic" trade such as roofing, siding or plumbing.
I would pay for a proposal that gives some information that has value to me in determining the direction that I want to go or for a design.
For example a deck DESIGN or kitchen DESIGN.
Or a proposal for fixing basement water problems, inisde drains, outside drain, regrading, etc.
Bill is right on the type of estimate, I could not nor would not even try to guess a leaky basement. that would be itemized
and it would be high wiht tons of what ifs.
pyro... 90% of the time we charge for preparing a Proposal... no design work included..
we ALWAYS charge for design work
if you are doing work that you can do a site visit, go back to your office and write up a proposal and then have a sit-down to present your Proposal.. and this is all done and over in say 4 hours ... i would consider doing that for no-charge... especially if i feel good about the initial meeting..
if there are plans, and specs... and my time is going to be say 10 - 40 - 100 hours ?
i'm going to tell them during the initial meeting , that i always charge for preparing a Proposal... and that charge is going to be typically $200..... or $500....
or $1000 , $2000, $3000 all the way up to $5000... guess what ?
the ones that will pay for the Proposal... i get aobut 90% of those into Contract
the ones that won't pay for a Proposal, almost always it turns out that the job is substantially delayed ( like a year ) or it never gets built ( they sell the house ),
or the guy who gets it loses his shirt..
i came to this decision about 10 years ago and i've never regretted it... except that i'd really like to do Bill Hartman's work... so we gotta work on him some more
Mike,
That was a great wealth of info. I never considered it as you have. Quite valuable advice you gave me. Thank you. If at first you don't succeed, try using a hammer next time...everything needs some extra persuasion from time to time. -ME
All of my work is referrals.
Up till now I have done free quotes. I have never advertised this however.
The local mindset is that the customer is entitled to a free quote. That also means that there are more than a few "potential" customers who dont think anything of calling and making all the right noises just to get you to come out and look, measure, advise etc. Then work up the numbers and present them.........just so they can say it will cost too much and never even have the courtesey to tell you.
As far as I am concerned, advertising free quotes is asking for all the tirekickers to call and waste your time playing 'what if'.
I have been through this so many times that I will no longer do free ones. The next one gets charged. As Mike said, the ones that pay are serious.
As far as I am concerned all this talk about "getting something" for the fee is bull.
They ALL get something.
They get a referred professional to look at the job.
They get a referred professional to give advice
They get a referred professional to give a quote that is accurate
They get assurance that YOU are legit, insured, reliable, do good work.
If that isnt valuable enough for them, then they should call the local hack, get a free proposal for the lowest price and get him to do the job. Then when it all goes belly up later.........tough. Ya gets what ya pays for, in this case, NOTHING.
Doctors charge for each visit, even if all they say is "Hmmmmm, we need to do some tests"
Lawyers charge by the hour.
Dentist charges as soon as your butt hits the chair. Blow off the appt and you get charged anyhow.
An appliance and tool repair man will charge to tell you whats wrong with it.
A mechanic charges by the hour, no matter what.
Interior designer, landscaper, colour consultant............all charge for the first visit.
So somehow the trades are there to run round for free? the trades are supposed to 'give something'?
Not me, not anymore. I have had as much as I am gonna take of getting to bed at 2 a.m and then working all day, just to come home and do it again.......for free.
What a sap. I just woke up. exhaustion made me do it.
Whatever it was.................I didnt do it.
BTW.. this discussion comes up about every two months.... look in the business folder
Pyrotechie,
to be blunt----advertising your willingness to give free estimates would be stupid---errr let's say" counterproductive" instead.
Keep in mind---it's ok to give free estimates----but advertising for 'em is gonna waste HUGE amounts of your time.
when your phone rings-----and the prospects first question is " do you give free estimates"-----you will know that there is an excellent chance that you have a tire kicker on the line.
On the other hand---when your phone rings---and the prospect says " I got your name from my friend at work---he speaks VERY highly of you------------- that's the guy you should be happy to meet and give a free estimate to----they are already 75% sold. In fact the job should already be yours---unless you screw it up.
BTW--- take 90 seconds and send a thankyou note to the guy who referred you----and do that EVERY freakin time he referrs you.
and every time you complete a job and get paid---send a short handwritten note to that customer----and send another one at thanksgiving time-----you will be the ONLY person doing this---and your customers WILL remember you.
Your customers will sell more jobs for you than YOU ever can----and eventually you will have a motivated sales staff of hundreds---maybe thousands. and it all comes from spending 90 seconds writing a handwritten thankyou note.
Best wishes, Stephen
Excellent advice. Actually I been repaying customers who give me a good referral with a free job when they need one if it's small enough that it won't kill me. Like I got a good referral from someone who later needed a sump pump fixed. Their referral got me a sizable job. I asked them to pay for parts only, no labor, as a thank you. But thta was reasonable, not a ton of labor and such and they saw it that way I'm sure.If at first you don't succeed, try using a hammer next time...everything needs some extra persuasion from time to time. -ME