The estimating software I’ve been looking at lately can give me an idea of prices for all sorts of building projects. One thing not listed however, is the price of a proposal. If I’m going to be building something, and I know how many hours it’ll take me to do it, I could start at figuring what I want for an hourly wage. If someone asks me how much I want to build him a home, and I tell him “hand over $500 and I’ll let you know,” somehow I get the feeling he’ll hang up the phone. <!—-><!—-><!—->
Considering my location, I’m guessing that many builders in my area don’t charge for proposals. Lowe’s Home Improvement home center charges $30 for any proposal, but they don’t do anything structural, so that would exclude homebuilding. <!—-><!—->
I suppose the price of a proposal could vary greatly depending on what you’re estimating. While there are also many different kinds of homes, what would be a good price for such a proposal to build a house?
–T
Replies
Actually Lowes does do whole house (or at least they farm it out).
http://forpros.lowes.com/
http://www.accurateestimates.com/
I am sure that it is more than $30, but could not find a price.
The only way to get a good answer is for you to ask yourself how many hours it will take you and what you need to make an hour.
BTW- I would never tell someone flat out on the phone that I won't do any work for them unless they pay me a Proposal fee. I tell them the way we work things but wait till the initial consultation to sell them on our process.
Jon Blakemore
RappahannockINC.com Fredericksburg, VA
If your reputation is good enough, ask for a design fee. That way they pay for the time to spec the job. IF you get the job, it can be deducted from the total bid for the job. This gets rid of tire kickers. Yes, you will lose some jobs because of this. Likewise if you don't do this, you will price many jobs for free. Your choice as to which one you prefer.
Kirk,I completely agree. I do get SCA's for all projects requiring design work.My point was that telling the potential client that they need to pony up to even get me interested in the job may not be the best approach.
Jon Blakemore RappahannockINC.com Fredericksburg, VA
Jon,Sorry, I still can't get these forum controls to indicate to whom the message is directed. I didn't mean to challenge your approach. My response was more directed at the original post.I agree that you want to phrase your policies carefully for maximum effect, but I do that right away on the phone. I pre-qualify my customers. I also have the advantage that all my work is referral so they are pre qualified a little even before they call.