Charging for Estimates?

[Tom Tom]

I'm thinking I gotta go this route, charging for estimates.
I'm talking about new installs, not repair estimates.

Around here, its the norm to give free quotes for work, but I'm tired of it.


Looked at a new system bid yesterday- actually running all new valves/pipe/heads from PVB. Their current system is obviously a POS that the homeowner installed with, yup you guessed it, 1" H.D. poly pipe that he repairs a dozen times a year. For those not knowing H.D. sold and probably still does the cheapest crap poly they can get from our friends overseas. Run from this stuff fellas.

So, I measure, explain that I'll figure it up and call later. So, I call later with the price. Whats the first comment? "Is that the best you can do?" How about, "Thank you for investing your valuable time and energy since we probably had no intention whatsoever of doing anything about our crappy sprinkler system" -OR- A simple thank you, would have sufficed.


Rant over, what say you?

[Mike Leary]

I'm thinking I gotta go this route, charging for estimates. Rant over, what say you?

I've always thought "free estimates" were bull. I do charge for a design, which I take my parts and labor estimate from. Most tire kickers won't pay for a design, or a as-built , for that matter. :cry:

[Wet_Boots]

Use the initial phone conversation to vet the situation. I want to know the actual property size.

[Stuttering Stan]

I Their current system is obviously a POS that the homeowner installed with, yup you guessed it, 1" H.D. poly pipe that he repairs a dozen times a year. For those not knowing H.D. sold and probably still does the cheapest crap poly they can get from our friends overseas. Run from this stuff fellas.
Do you know who manufacturers this poly?
All I buy is Charter and I don't have any knowledge of other manu?

[FIMCO-MEISTER]

Use the initial phone conversation to vet the situation. I want to know the actual property size.

This is my route as well. Better to waste 15 minutes on the phone than 1 hour or more at the property. If they try to shorten the phone conversation and get you out there then avoid them. If they get engaged with the issues over the phone then they have potential.

[Stuttering Stan]

I've always thought "free estimates" were bull. I do charge for a design, which I take my parts and labor estimate from. Most tire kickers won't pay for a design, or a as-built , for that matter. :cry:
I completely agree with you. However, on the flip side, EVERYONE else does them for free. If I were to charge for estimates then my competition would have an advantage from a customer standpoint.
I, just like other on here, am tired of wasting time on free estimates but I think it is necessary to keep new work coming in.

[Wet_Boots]

Home Depot isn't going to use one vendor for all the poly for all the stores - too much freight involved. I know one of the major home centers had Oil Creek poly when I checked.

[WalkGood]

Home Depot isn't going to use one vendor for all the poly for all the stores - too much freight involved. I know one of the major home centers had Oil Creek poly when I checked.

Last I looked at HD poly, they had Oil Creek as well. One of the major supply houses around here buys Oil Creek by the tractor-trailer load. I'm 50 miles from Boots' "METRO NYC" mystery location.

[ARGOS]

Back to qualifying the customer. 1) Is there a need? 2) Is there a budget? 3) Are they the decision maker? 4) Like Mike says Location?

I am trying to do this over the phone first. I just screened a customer last week. He sent me the plans and I point blank asked his budget. I know I can install within the budget. Now I am meeting him. Wish it always went this smooth.

Once I established that he could afford the job and was the decision maker it was easy to explain that I will have to be reimbursed for irrigation design work for final pricing. I always go for T&M, even on installs. I don't always get it, but try.

[Stuttering Stan]

How often do we get customers that have their ducks in a row like Argos' example? Very rare in my opinion. All my customers just want to get water on the ground so the green doesn't turn brown in the heat. That's the extent of their knowledge if irrigation. I think the majority of my customers are working class Joe and irrigation isn't a necessity in their mind.

[ARGOS]

How often do we get customers that have their ducks in a row like Argos' example? Very rare in my opinion. All my customers just want to get water on the ground so the green doesn't turn brown in the heat. That's the extent of their knowledge if irrigation. I think the majority of my customers are working class Joe and irrigation isn't a necessity in their mind.

We all have our business model to follow, but this is a prime reason that I am starting to screen via location. I am going for the more affluent neighborhoods with more extensive landscaping and not just turf.

Twice over the last two years I have gone to the local Title Company and they were able to print out a mailing list for specific communities (for me they happen to be golf resorts and better neighborhoods). They did it for free...even gave me addresses on labels (I always used the same Title Company and I pruned their Roses for free). I then directly mailed to these customers.

[Stuttering Stan]

I then directly mailed to these customers.

What kind of response did you get from direct mail? My business comes from word of mouth so it is not neighborhood specific. I would like more jobs in the ritzy neighborhoods.

[AI Inc]

What kind of response did you get from direct mail? My business comes from word of mouth so it is not neighborhood specific. I would like more jobs in the ritzy neighborhoods.

Avergae for direct mail is about 1% , targeted direct mail runs about 4%.

[Mike Leary]

I would like more jobs in the ritzy neighborhoods.

I contacted Landscape Architects, garden designers, gardeners, etc, and offered my services. It took a while, but I got where I wanted to be: the "Gold Coast".

[AI Inc]

Im getting ready to chase the opposite as it seems to have fallen in my lap lately.

[txgrassguy]

I screen potential clients over the phone before I actually schedule a site visit/survey.
I inform the potential clients up-front there is a charge for the site visit which may be applied to the estimate total should they choose to hire my company.
The good clients, the ones that are serious about hiring a qualified and experienced contract appreciate my honesty and direct approach.
The ones that gasp and wheeze are the ones I don't want as they are low ball shoppers and aren't worth the effort.
So far this process is working well as I have new installs which also encompass hardscaping through September.

[Mike Leary]

Im getting ready to chase the opposite as it seems to have fallen in my lap lately.

WTF, you're going for the bottom-feed end?

[AI Inc]

No older customers with small homes that they own outright , who have the money to pay and no desire to shop around.
I did one yesterday , a little 6 zoner for a current customers mother. Before I even did the install she refered me to a neighbor who also bought on the spot . Little 5 zoner.

[Mike Leary]

Little 5 zoner.

Following in Peter's steps taking advantage of us elder folk, thanks.

[ARGOS]

The first direct mailing on a very targeted customer base led to three jobs. They were installs. Both were pretty significant jobs. I did receive multiple referrels that led to more work in the area. Right now I am pretty busy, but when I get ahead of the game I will do another mailing. The mailing was half a percentage of the revenues on those three jobs. Pretty cheap advertising. I also lowered the initial cash outlay by trading with the graphic artist for the postcards.

[AI Inc]

Advantage no , care of yes. Ive sold 5 small sytems to people this week. All over 58 yrs old. All in homes they have owned for 25 + yrs.

[bicmudpuppy]

Don't charge for the estimate, charge for the design. You can't/won't do an estimate w/o a design. If they have a design, they can fax, e-mail, or mail it to you and you will bid it free of charge. They don't have a design, they need to pay you for one to get a real estimate. If they're not interested in a real estimate or bid, then you shouldn't be interested in wasting your time. This gives you a loophole to do commercial estimates. Almost all commercial work comes with design and specs. You can also offer to rebate the design cost if they hire you to install said design.

[bcg]

Don't charge for the estimate, charge for the design. You can't/won't do an estimate w/o a design. If they have a design, they can fax, e-mail, or mail it to you and you will bid it free of charge. They don't have a design, they need to pay you for one to get a real estimate. If they're not interested in a real estimate or bid, then you shouldn't be interested in wasting your time. This gives you a loophole to do commercial estimates. Almost all commercial work comes with design and specs. You can also offer to rebate the design cost if they hire you to install said design.


This is exactly what I do. 95 times out of 100, we don't do a design or an estimate but that's OK. We're mostly service oriented anyway and I don't want to do an install where I have to compete on price. If I'm installing it, I want to do it right.