TODAY'S BLOG - THE COST OF FREE ESTIMATES

HOW COME WE DON’T CHARGE FOR ESTIMATES? Well a few of you confident contractors might but I don’t know any roofing contractors that charge for estimates. Do any of you figure in your estimating costs as a part of your operating costs? Does anyone put a dollar value on their time?

I got a waterfall installed in my backyard. Saw the guy at the county fair and when I called him to come out for an estimate he said “$75 dollars for the estimate, and both spouses need to be home”. Whoah, makes you wonder if you really want that waterfall. He wasn’t going to waste his time if we weren’t serious about the project. He took the $75 off the job if we signed a contract.

I believe there is no way that we as contractors can start doing that now but it would really weed out the tire-kickers. With the current state of the economy what owner wants to add the cost of getting 3 estimates? Besides with all those low-balling idiots out there we wouldn’t stand a chance. So back to my original thought…

A contractor I once called on told me to put a dollar value on my time for everything I did. It was such wise advice and puts everything in perspective. (I found out a fabric play house I made for my God Daughters should have cost them $3200 – could have bought it online for $300) Say you should be making $50 an hour. Your driving time, time with prospect = $100. Do you account for that in your operating costs? You could have been making money pounding nails instead. What business owner thinks about his time as an expense? I suppose if you take a regular paycheck or your estimator does, then the time is accounted for. But I still believe we don’t have the correct way of looking at our Free Estimating Policies! Put some thought into it, am I right?

Link to Blog http://www.rooferscoffeeshop.com/soapbox/

P.S. I will try and find some old Forum topics on this subject to link to.

Sales/marketing is a cost of doing business, of which estimates would/should fall under....I would think the majority of roofing contractors do charge for estimates, indirectly, so-to-speak.....

Go down a short way to the large yellow high-lited line. http://www.albertsroofing.com/

Then go here.

http://www.albertsroofing.com/Estimates%20vs%20Inspections.htm

When the people willing to pay for a proposal call you, they've already done lots of reseach and they want you to do the job. The phone rings less, but 80%-90% of the calls are a 'sale', not an estimating trip.