# what to do if home owner is price shopping



## quix07 (Jan 9, 2007)

I went on an estimate for drywall repair (about 5 sheets and spackle for paint). From talking with the homeowners I get a gut feeling that they are just price shopping and won't do the work until a much later time. From previous experiences I'm 90% sure I will never hear from them again.

So my question is how do you guys handle this. 1) don't even bother to waste your time and send them an estimate 2) do the estimate quick and mark it up just incase they decide to hire you 3) act like it is any other estimate


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## Cole (Aug 27, 2004)

1. Charge for estimates.


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## quix07 (Jan 9, 2007)

In my area if I charge for estimates I wont get calls.


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## oldfrt (Oct 10, 2007)

Yea,if you feel their pulling your strings,pull on their purse strings!


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## kevjob (Aug 14, 2006)

give them a number and ask for the sale if they hem and haw see ya!:thumbup:


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## copusbuilder (Nov 8, 2005)

I have a problem with people that have little regard for ones time.
Give them and estimate and mark their name in your book. If they call you again make 6 appointments and break them all minutes before the scheduled meeting:whistling

At least it would be fun to do:laughing:


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## thom (Nov 3, 2006)

The most annoying ones are the ones who have already hired their brother/cousin/friend to do the job but get an estimate from you so they know how much to pay them.


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## quix07 (Jan 9, 2007)

Thom- thats exactly what i feel is happening here


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## Putty Truck (Oct 6, 2007)

quix07 said:


> In my area if I charge for estimates I wont get calls.


Have you tried? If a ho needs the work done and is ready to buy, they will pay.

Also, if they buy, the estimate is waived: "The estimate fee is $45.00 and its waived if we do the work. This is good for 30 days."

If it is an old customer, the same applies because oil is hitting 100 and the 'vette needs new rubber.


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## vinylguy (Mar 18, 2006)

never leave your estimate for them to use to price comparison with cause another guy who leaves with the work order will also probably have your estimate in hand also. just give them a price ask for the job if they him haw say see ya!


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## Bob Kovacs (May 4, 2005)

quix07 said:


> I went on an estimate for drywall repair (about 5 sheets and spackle for paint). From talking with the homeowners I get a gut feeling that they are just price shopping and won't do the work until a much later time. From previous experiences I'm 90% sure I will never hear from them again.
> 
> So my question is how do you guys handle this. 1) don't even bother to waste your time and send them an estimate* 2) do the estimate quick and mark it up just incase they decide to hire you* 3) act like it is any other estimate


It sounds like an estimate that should take all of about 2 minutes to put together, so is there any other way but "quick" to put it together???

- 5 sheets of drywall at $10- $50
- Mud, tape, screws- $20
- Pickup rock, hang, tape, finish- 8 hours at $60/hour- $480 

Total cost w/ overhead in labor costs- $550
Add for profit- $150
Total price- $700

There- I did it for you (and I expect 10% if you get the job). You already wasted the time to go out there and look at the job for free, so you may as well throw them a number in case your gut is wrong and they really want the work done. 

Give me their phone number and I'll even call the quote in for you


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## Chris G (May 17, 2006)

Gut instincts are usually correct. But this job is pretty clear cut and doesnt sound like it cold turn into a clusterfug, so its worth 5 minutes of your time to explain to them the different levels of finish involved. You dont (damn I hate not having an apostrophe key that works) have to tell them how do it but you can give them an idea of the intricacies involved in taping and plastering and what can go wrong. They might get the idea that a good job costs a reasonable amount of money.


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## Mike Finley (Apr 28, 2004)

quix07 said:


> In my area if I charge for estimates I wont get calls.


Doubt it. I'm betting there is a dollar amount you could charge no matter how rural an area you are in.


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## dougchips (Apr 23, 2006)

Bob Kovacs said:


> It sounds like an estimate that should take all of about 2 minutes to put together, so is there any other way but "quick" to put it together???
> 
> - 5 sheets of drywall at $10- $50
> - Mud, tape, screws- $20
> ...


2 minutes/5 minutes/10 minutes is way to long, most experts can prejudge every client in less than 8.6 seconds. With proper prejudging (burn them/blow them off) 100% of clients will not do business with them so they will prejudge correctly 100% of the time. :jester:


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## Flikka (Feb 22, 2006)

*But*

Where should clients go to get estimates when they are trying to decide what they can afford and when they can afford it. Obviously, well to me anyway, this probably isn't the case given it's just a small drywall job but if they wanted a new bathroom or kitchen or addition who should they ask? Wouldn't you like it to be you in the off chance that you sell yourself and your company well and may get the job down the road when their wish list is complete and the finances in place? Should there not be any tire kicking? 

Mary


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## osborn (Dec 6, 2006)

When I feel I am being shopped,I tell them straight up. I say Ill give them a close estimate off the top of my head. If its in their range then I will spend time on it. But I do tell them I dont spend time on estimates if Im not getting the job.


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## sendres (Jul 3, 2007)

*Can you really blame them?*

I hate wasting my time with tire kickers like everyone else and I do my best to avoid them, but I have a hard time blaming a home owner for getting three estimates. At the same time, while I don't yet, charging for estimates is fair as well especially if your giving more than a one liner with complete specs which should be standard.

Most people won't be able to get a referral and will be going in blind into the yellow pages. Now lets face it not everyone in this business is as honest, fair, and on the up and up like everyone on this forum:whistling. Unfortunately, there are some scammers, cons and fly by nights, that give the rest of the contracting world a bad name.

Any major business typically works on a minimum three estimate system, unless working with an existing relationship. Why should we expect a homeowner to be any different with thier life's largest purchase. At the same time I expect the homeowner to be prepared, professional and true to a bid process. So I won't back out just because they're getting other prices, but I do try educate them on my abilities and history and items to consider in thier evaluation. Who ever does the work I hope they have a good experience, because every bad one just adds to the negative contractor stigma.

My 1.8 cents


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## RenaissanceR (May 16, 2006)

*RE: Estimates*

[deleted]


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## Floordude (Aug 30, 2007)

I didn't have the heart to tell the lady, that the guy that was adding on to her home, was an idiot. The guy didn't own a level, I'm sure. She got a no bid from me. I showed her all that was wrong and out of spec/standard with the flatness of the recently built substrate. When she asked what to do about it, I couldn't bring myself to say, tear it all down, and start over!!! The addition was built 3" to high, and then they sloped it in the last 8 foot to the door, adjoining the existing residence, so it would be an even transition... Hahahahaha!


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## eastend (Jan 24, 2006)

JoeF:
I'm curious- what do you charge for your "Restoration Proposals"?


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## fci (Dec 11, 2006)

*So what*

It doesn't bother me if a customer gets 2 or 3 other bids. If I get an opportunity to look at the job then that gives me a chance to sell them on why awarding me the job would be to thier advantage. It is all in how you look at the situation. As sendres said the norm is 3 bids, so why should it bother you? Do you know how to sell your trade, skill and company???


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## concretemasonry (Dec 1, 2006)

Shopping takes time, so use the time factor to your advantage.

Give the HO a good, but reasonable price, BUT limit the time to being accepted and able to start soon (4 days to 10 days depending on the size job). Put this in writing. Leave the future price open to allow you to accept or back out since you have more and better things to do. This should not be a low-ball price, but a price you could live with if it fits your schedule.

One adavantage is that he thinks you are serious about getting in and getting the job done.

If the thinks enough of your ability and selling, he should call you back.

If he starts nit-picking, you can easily turn your back since he is not the kind of customer you want.


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## BuiltByMAC (Mar 11, 2006)

If I get the impression I'm being shopped, I explain that I charge an estimate fee for a detailed estimate (no plans, just written scope of work). This has happened twice. The first, I think she was figuring out what replacing the deck would cost so she could sell the place. At the first meeting, I knew she wasn't going to have me do the work so I told her I was going to charge her $150 for the estimate (3 actual hours of my time would be spent on this thing). The $fee would be applied as a credit when we signed a contract. I got the estimate to her, she paid, I never heard from her again. It was a deck rebuild, no real design on my part. If I'm asked for a design, the initial price goes up. (I can't work for free, people depend on me)

I ask people to get multiple bids for their project. Hell, I think I get some of my jobs just by being more professional (by far) at the initial estimate meeting than a lot of guys! I'll have the potential HO visit my website, I'll explain some of the differences in building which would account for differently priced bids. If I do my sales job correctly, they'll want me even if I'm the high bid...because they'll know what the difference will be.

Mac


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## RenaissanceR (May 16, 2006)

*RE: Estimates*

[deleted]


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## ultimatetouch (May 27, 2006)

1) Dont think about the price shopping. Get through to them that you are the best value..hence the price. Sell your service man.

2) Definetly send them an estimate or better yet deliver it to them right on the spot. 5 sheets is small potatos.

3) Keep hustling for more work and dont give them a second thought. Its only five sheets of drywall, treat them like its important but find bigger jobs unless you like those little ones.


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## alarmer1 (Feb 4, 2007)

*Wow, you get 10%*



Bob Kovacs said:


> It sounds like an estimate that should take all of about 2 minutes to put together, so is there any other way but "quick" to put it together???
> 
> - 5 sheets of drywall at $10- $50
> - Mud, tape, screws- $20
> ...


 


The guy i work for only pays 5% (of the profit) and expects me to run the job from A-Z


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## casey344 (Dec 15, 2005)

*Competitive Bid*

Here's some email dialogue between a customer and I last week:

*Customer:*"Casey, thank you for the response. This is right in line with what I expected. I must do something soon and I will give some thought to your quote. I have not priced anyone else for any other solutions. Can you tell me if this is your bottom line price. If there is any room for movement I may very well be ready to proceed without having to get any comparative quotes."

*My response:*
"Mike,
Without sounding over confident I am fairly sure of our ability to estimate jobs so that we win them, otherwise we would always to be estimating and never working. We are almost always the mid-price bid, rarely the low bid and never high bid. Having said that, if you get a competitive bid for the same type of work I would be willing to look at it with you. Right now we have work scheduled ahead of ourselves for the next 3 months. We have some flexibility in our schedule because of the season, so if you want this work done quickly I am sure we can work with your time-frame and get it done much quicker than that."

*He responded with:*
"I would like to have you come out with your estimate so we can finalize the details of the project so that we are all on the same page. I believe we can begin the steps to proceed with the project."


I thought my intial response was a little harsh but I felt like he was pushing me and I pushed back.

Casey


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## Cole (Aug 27, 2004)

Good for you, Casey!


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## DamionR (Jan 19, 2007)

Amen Casey.

This is the prospects last-ditch attempt to get you down on price before they buy - because they're going to buy anyway.

Whenever I hear those words.... Is that your best price, bottom line price, etc... I know I've got a deal and stick to it. Usually with a response very similar to the one you used.

Congrats!


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## Tiger (Nov 21, 2007)

I've done my time with free estimates. I still do them for existing clients, but new ones need to pay a service charge. At first I didn't think it would work. There are a half dozen ECs that advertise free estimates in this area. I've found that most of the prospective clients will pay a service charge to get a qualified EC to look at their project. As for the ones that won't pay the fee, I let the other guys compete for them. Most of my work isn't competitively bid.

Dave


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