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Free Estimates? Why Charge??
Letter to Consumers & Contractors
CHARGING FOR ESTIMATES
If you’re getting too many requests for estimates that aren’t converting into sales, it might be that your estimates (in and of themselves) have value to the prospects, or that your prospects aren’t really serious about having the work performed. These issues can be resolved by charging for estimates.
Other contractors’ clients often take advantage of offers for free estimates to check on the prices of the contractor they actually intend to use.
Especially when times are tough, estimating for the people who will probably hire you can also eat up a lot of time.
Some contractors are hesitant about charging for estimates, and some consumers are equally hesitant about paying for them. The following true story can be added to your webpage or any communication that discusses your fee schedule for estimates.
That’s a lot of money for only a few hours’ work!
The legendary artist Pablo Picasso was dining at a restaurant in New York City one evening. A fan approached his table and introduced herself, and gushed at how thrilled she was to meet the great master and how much she loved his work.
Encouraged by his polite response, the fan begged, “Oh, Mr. Picasso, would you draw me a sketch?”
Picasso grabbed some paper and a pen, and promptly sketched an image of the waiters passing by with their dessert trays.
As the woman reached for the sketch, Picasso stopped her and said, “Madame, that will be $10,000.”
Shocked, she replied, “But that only took you five minutes!”
“No, Madame,” he answered. “It took me 50 years.”
Picasso priced his service according to its value, not the cost of its manufacture. He did not price his sketch based on the cost of the paper plus the cost of the ink plus some hourly wage… and nor should a contractor.
Charging for estimates is a way of screening prospects for their seriousness. You can easily offer to credit the cost of the estimate into the cost of the project for prospects who become clients.
"What’s a “Free Estimate”
But what is a “free estimate” exactly? The word estimate can be a verb or a noun. The definition of the verb is to roughly calculate or judge the value, number, quantity, or extent of something, while the noun is an approximate calculation or judgment of the value, number, quantity, or extent of something. So it stands to reason that the definition of a “free estimate” when applied to the construction industry would be an approximate calculation of the cost to complete the project, provided free of charge to the prospective client. However, what most prospective clients want and expect, when they request a free estimate, is an exact cost, and not an estimate at all. After all, who would want to embark upon a major kitchen or bathroom remodel, addition, or renovation project in Florida based only upon an approximate calculation? We certainly wouldn’t!
The old adage “you get what you pay for” is no more appropriate than with regard to home improvement work. A contractor that provides a free estimate is HOPING to get the job. A contractor that is paid to provide a detailed project proposal is planning HOW to do the work, and in so doing, is able to spend the time that is necessary to prepare a budget and scope of work that is accurate and comprehensive.
At ATTHM”LLC” we will gladly meet with a prospective client to discuss a project free of charge, and will also provide an informal, high level broad estimate of what we think a project will cost. That’s a free estimate. If a prospective client is interested in possibly moving forward with a project, through the use of a Pre-Construction Planning Agreement, for a reasonable fee, (if contract signed the fee will be removed from contract total) we will prepare a detailed budget and scope of work that explains clearly and precisely what we will do, how we will do it, and how much it will cost.
If design work, drawing, inspections, or permits are required, these are also services we provide. Not only are our prospective clients provided with accurate budgets, this process allows them to get to know us in a professional capacity and to see how we perform, all without further obligation or commitment. After all, wouldn’t it be better to determine that a particular General Contractor is a good fit prior to starting work, and that the project budget was not based upon an approximate calculation?
Tarpon Springs, handyman services, New Port Richey, Holiday, home repair
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Estimates:
All estimates for work will be provided based on the information given to ATTHM”LLC” by the customer. Any variations to the work following the issue of the estimate and prior to commencement of work shall result in a revised estimate being issued for acceptance.
For variations after work has commenced, a fixed price to cover the variation shall be agreed between ATTHM”LLC” and the customer and added to the final invoice.
In the event that requirements change due to insufficient information having been provided, defects found in existing installations, etc. the customer will be liable for any additional expense incurred.
Estimates shall remain valid for acceptance by the customer for a period of 7 days following the issue of the estimate and work is to commence within two weeks from the date of the estimate else a new estimate will be required.
Estimates are provided on a best endeavor’s basis only and, unless a fixed price has been provided to the customer, work will be charged based upon the price of parts provided by ATTHM”LLC”, labor pertaining to the skill required, 8% overhead & 22% profit margin which will be charged and may include time taken to research, source and purchase any materials provided.
Unforeseen Costs
The customer shall be liable to meet the cost of any additional work, services or fittings that need to be provided to rectify any event or situation which arises during the course of the works that are unexpected or are beyond ATTHM”LLC”s control. ATTHM”LLC” cannot be held responsible for such events or situations.
Liability
ATTHM”LLC” can only be held liable for the extent of works carried out by ATTHM”LLC”. No liability shall be accepted in respect of defects in existing installations or in respect of parts not manufactured by ATTHM”LLC”. ATTHM”LLC” shall not be held responsible for any loss or damage to property, materials or injuries to individuals caused by the personal actions of the customer or other household members or guests before, during or after such works have been carried out.
All advice provided by ATTHM”LLC” is offered as an opinion only and the customer accepts such opinions at their sole discretion and risk. The customer employs the services of ATTHM”LLC” at his or her sole risk at all times.
Warranty:
One-year workmanship warranty on all labor provided by ATTHM”LLC”. Parts carry manufacturer warranty and ATTHM”LLC” is not responsible for defects, damages due to shipping & handling. ATTHM”LLC” cannot be responsible for manufacturer defects in products not seen at visual inspection of materials or of materials provided by the customer. No warranty is covered under provided materials from customer.