Hello all,
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How do you go about formatting and laying out your quotes.
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I start out by describing all the steps required to complete the job in a Scope of Work.
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I then tell them the total price to complete the job.
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I then give a break down and tell them that the total is divided into my costs.
eg; $30,000 plus itemized allowances built in to the total quote.
Consisting of $250 for lights $400 for faucet $3000 for Granite Counter.
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I have lately lost some jobs because of sticker shock. Even though price range was previously discussed.
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In analyzing and talking to various people; 2 schools of thought emerge.
One: I should low ball the quote and not include costs of Owner responsibilities itemized
in Allowances so the Quote appears lower.
Second; that I should continue informing them of the true Total cost of the job.
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I generally remodel Kitchens and it also came up that I should break the cost down to a basic Kitchen, and then offer a menu of options:. Crown Moulding, Light Valance, Cabinets to the Ceiling, Glass Doors etc. This, even though all the bells and whistle’s were discussed.
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People get really angry when I tell them how much I have to pay the Plumber;
They can’t seem to wrap their heads around the fact that a Master’s Degree is worth less.
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I really don’t want to come off like a car salesman with the options route.
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Your insight would be appreciated.
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Ron
Replies
Legacy,
I think the problem lies less in your quote structure and more in your ability to sell the experience of a new kitchen. I am reaching here... but I sense that you are selling a product-a kitchen.
You may want to tweek your approach to selling the experience of having a great new kitchen space of their dreams and have the ability to generate beautiful drawings to get them more excited about the experience. I bought my first version of Chief architect and five days later I sold a $60K kitchen remodel.
Bring them to former projects and hopefully your past clients will sing your praises.
When I first started I presented these quotes in a similar manner. I learned I was not just selling a kitchen-that what HD does, I was selling a great remodeling and design experience. It gets you out of the buying only based on price and makes the cost of plumbing irrelevant in the overall scheme of things. It is a significant change in mindset and approach.
Most clients who appreciate quality will buy this way. Those who are looking for the lowest price will not and frankly I will never be the lowest price so we should not be working together anyways.
When you do run into pricing issues, be prepared to delete items to help them reach their price point goals-Do not lower your price for the same product-you will not make it up in volume.
Something to think about.
Bruce
Ron, can you attach a copy of one of your "quotes". Change the name and address to protect your clients. Maybe there is something going on, maybe not.
You aren't going to sell them all. I'm happy with 30% but lately I've been closer to 10%.
There is a reason why car guys offer the options separate: it works. On a kitchen, you should be able to make it work for you too. You have to respect their ability to pay and if you continuously include too many bells and whistles and lose jobs, you aren't doing anyone any good.
Ron--
Attached is an estimate I produced for a small job re-doing a front porch. This particular job happened to be for a close friend who was in a bit of a bind, so ignore the actual prices. But this is the kind of detail I put in all my estimates.
BTW, I charge the potential client for my time doing these; I find that that sifts out the serious prospects from the tire-kickers pretty effectively.
Dinosaur
How now, Mighty Sauron, that thou art not brought
low by this? For thine evil pales before that which
foolish men call Justice....
I used to work for a couple of owner/operators who renovated kitchens and baths. They always, always itemized their estimates - but they never included anything that they didn't bill for directly.
They didn't actually sub out flooring, for example, the logic being that they didn't have any flooring in their showroom. They also didn't sell appliances.
It worked for 22 years, but then they went under. So I dunno. ;-)
I'm not a salesman, but I'd push the benefits of anything your clients find too expensive. I'd stress that your licensed plumber will provide reliable work. My former employers almost never used a licensed plumber.
Thanks for the thoughts.
I normally meet with the clients 4 to 5 times and try and get a rapport going. I only do a quote once they indicate that they want me to do the work.
I also do very detailed drawings to show them the end product. I build my own cabinets and am on par with any high end shop.
I emphasis that I am offering service and attention to detail, not just a person with a hammer. I also emphasis that I do not need a down payment to start and that they do not have to pay until they are happy with the progress to date. I also garauntee everything I do for 5 years.
This has worked for me for 28 years but it seems to be abandoning me of late.
Any other thoughts would be appreciated.
Here is a link to my website to indicate the type of work I do.
Everything you see in there has been built by me personally.
http://www.legacyrenovators.com
Thanks again.
"I also emphasis that I do not need a down payment to start and that they do not have to pay until they are happy with the progress to date."
I wonder if the vagueness of your pay schedule scares anyone?
That line just doesn't sound like something a professional would say.