[PSUscaper]

Hello,

I've been trying to figure out a solution to some problems that are arising from doing estimates.

What I would like to know is how does everyone else approach the matter.

One problem is that I go on many, many estimates and find that you really can't afford to spend the time on truly studying the site to make exact calcutions. For instance.......if you are doing a raised patio, it is sometimes very difficult to calculate exactly how high the patio will be/how many steps will be included. You can obviously bring a transit to the site to take measurements, but the problem is who has time to do this considering that this is only a 'possible' job.

I can give a fairly accurate price quote from quick observations and some quick measurements, but often find it is almost impossible to figure out such things as exact heights/exact drainage requirements, until you start the project.

So the problem I run into is that my intial estimate gets changed the day I start the project and really start figuring things out.

My question then, is do you give a 'rough' estimate to people, and then upon approval of that, go back and spend the time to make exact calculations to come up with a exact price.

Or do you more or less give a 'worst' case scenario estimate all the time, where you inlcude every/any thing that may need to be done? (but with this, the fear of losing the job to someone else arises because they may not include the same things and therefore may be cheaper)

I guess the overall problem I am having is time. I mean, how much time can you spend on a estimate, and how exacting can you make it? Do you ever get yourself caught in a situation where you start a job, and then realize you would really like to do some things that you didn't plan for, but didn't include for in the price?

Mainly, I am referring to smaller jobs.....say less than 20k. For more complex jobs, I make time to sit down and figure things out(ie....draw up a plan, take exact measurements, etc.). But just find it impossible to do so on these 'price' shopper type estimates.

steve

[Stonehenge]

I guess I always try to go with a worse case, but not necessarily worst case scenario. Odds are my butt will be covered most times, but if not, it's usually only a little exposed on those projects where you have to add a step, or add a course of block, or whatever.

[Rex Mann]

Here's how we do it. I try to prequalify over the phone. Here are some of the questions I ask:

Have you received any estimates yet: If they have then they will not have "sticker shock" if I am the first then "ss" could happen.

How did you hear about us. If it is a referral from a past client I ease up on the prequalifying drill.

How large is the project. I want to know square feet. Not it's a big job! only to find out it's only 1000 sf.

How long have you been in your home. Do they have enough time there, that they may or could have a home equity loan going on. Means they have the money.


What time frame are you looking at for completion. If they want sooner then our schedule allows then why waste time meeting.

Do you have an idea or a design you are leaning towards. Means they have done some exploring on the subject.

Then I have a list of things I tell them what will happen and what I expect to happen. However, this is done in a nurturing way.

When I arrive and start talking with them I can size up the project and I'll have a rough idea of what it will cost. Then I ask if they have a set budget. If I can uncover that, and it is over the estimate I have in my head then we proceed. If not, I try to reduce the size of the project to fit within the budget. If they say 2K and it's a 10K job I tell them the budget is just not there, and I leave. Each step is done in a professional manner. I tell them to keep me in mind if the situation changes and to send me a friend.

I used to go on about 125 appointments a season before I started prequalifiying over the phone. The season I started qualifying over the phone I reduced that to about 80. I eliminated 45 tire kickers without much wasted time. Of those 80 maybe 40 people were qualified by budget and personality and received formal proposals. Of those 40 proposals I got 35 jobs. Each proposal included me measuring and figuring exactly the materials and labor. I use a one-man laser to help me do accurate estimates.

This method of selling saves me about 140 hours a season compared to how I used to do it.
My point is to prequalify prospective clients. That will give you more "free time" to work on the estimates. And, you can spend all the time you need with the ones who buy.

I also use a program I made in excel for estimating jobs. Just type in the quantities and it spits out a selling price.

I know it's tough to turn away potential business. However, you and your company will benefit by it in the long run.

Peace,

Rex

[jwholden]

qualified by budget and personality

The longer I'm in business the more I realize how important personality is and SHOULD NOT be overlooked!