Free estimates...friend or foe?

[brian oliver]

From a sales perspective:

I'm (usually) thrilled to go out and talk to customers, and do a site survey. It gets me a face-to-face with a decision maker, and allows me to "show off".

I will straight up tell customers that "we're all the same, give or take 10% or so" and have told them "You can't sell signs - I'm here selling me". The candor and honesty combined with blatant advertising of skill works wonders - but none of that happens if I don't get to meet them.

My conversion is up around 50%, and I'm managing ~75k of jobs currently. Gotta be doing something right.

Keep up the good work, JT. Sometimes getting in front of the decision-maker just isn't possible. Many are out of town or insist on hiding behind a manager.

 

[brian oliver]

I don't charge for them. Most estimates aren't that involved, if I get an complicated one I make a judgement call on whether I want to take a shot at it. The ones I usually pass on are for a contractor (who isn't a repeat customer) who is bidding a large project and there on signs involved. They don't even have the job, and if they do get it there's no guarantee they will come back to me anyhow.

You're brushing up against my point exactly, Bill. I don't want to turn down the opportunity flat, but I'm reluctant to spend hours on a wild goose chase.

 

[mmblarg]

Most of our estimates can be done quickly and without leaving the office. However, when we have a site survey, we add the cost of time and mileage from the quoting process into the quote itself. This way, if the customer proceeds with the order, that time is recouped. But otherwise we don't charge for the estimate, even if we put time and miles into one that doesn't come to fruition

 

[brian oliver]

Most of our estimates can be done quickly and without leaving the office. However, when we have a site survey, we add the cost of time and mileage from the quoting process into the quote itself. This way, if the customer proceeds with the order, that time is recouped. But otherwise we don't charge for the estimate, even if we put time and miles into one that doesn't come to fruition

Thanks for your input, MM. This is probably the route I'll choose. Basically the one I'm on now.

 

[equippaint]

The quoting isnt so bad if you can increase the amount of jobs that you land also.
Its hard to do because of time constraints but for decent jobs bring them the estimate when it is ready, dont email it. I have always had better luck closing the order when I hand deliver the proposal. You can see their reactions and negotiate on the spot if needed. The chances of your work ending up in the trash is much greater if you send it via email. If you cant, at the very least, call the person beforehand and tell him you are sending it. Give it a little time and followup by phone.

 

[equippaint]

I don't charge for them. Most estimates aren't that involved, if I get an complicated one I make a judgement call on whether I want to take a shot at it. The ones I usually pass on are for a contractor (who isn't a repeat customer) who is bidding a large project and there on signs involved. They don't even have the job, and if they do get it there's no guarantee they will come back to me anyhow.

Something to keep in mind is the contractor that contacted you for a bid usually knows all the other contractors bidding. They usually dont have a problem telling you this information. It can also be found on dodge reports (if they still have them). So if you spend the time bidding it for 1 guy, just contact the others and they will almost always welcome your quote.

 

[Texas_Signmaker]

Bidding has become MUCH easier then even 5 years ago. Get on Google and pull up streetview, pull up satellite in another window and "measure" the top of the sign. Paste the street view image in Flexi and size the width and that should get you in the ballpark. Usually I can do this while on the phone talking with the customer.

Had an insurance claims adjuster tell me they do this to estimate roof replacement / repair costs. Pretty neat these internet times we live in! Maybe soon we'll be sending drones out to survey signs and talk to customers. Heck, I'm sure before my time is up we'll all have zero need to get out of bed to do anything anymore.

 

[NateF]

From a sales perspective:

I'm (usually) thrilled to go out and talk to customers, and do a site survey. It gets me a face-to-face with a decision maker, and allows me to "show off".

I will straight up tell customers that "we're all the same, give or take 10% or so" and have told them "You can't sell signs - I'm here selling me". The candor and honesty combined with blatant advertising of skill works wonders - but none of that happens if I don't get to meet them.

My conversion is up around 50%, and I'm managing ~75k of jobs currently. Gotta be doing something right.

There's a lot of truth in this. Not a one-size-fits-all solution, at least for me. But definitely good points.

 

[Sidney]

I'm in the process of revisiting a number of my shop policies and was thinking about estimates and quotes.
The time required for these can be intensive and can eat deeply into the bottom line. What is your policy regarding this necessary though (oftentimes) time-intensive service? Do you charge a flat fee? Charge for the expected time investment? Or do you provide them as a free service in the hope of landing the contract and recouping the cost of the time there?
Just to be clear, I'm not talking about design time. I charge for that. But if there is no design work required, I'm considering charging for a quote that might take an hour or more to put together.
Thanks for your input.

I don't believe it would be a good practice to charge somebody for an estimate, but you definitely do not want to do any type of mockup/ rendition without a deposit.

 

[ams]

I'm in the process of revisiting a number of my shop policies and was thinking about estimates and quotes.
The time required for these can be intensive and can eat deeply into the bottom line. What is your policy regarding this necessary though (oftentimes) time-intensive service? Do you charge a flat fee? Charge for the expected time investment? Or do you provide them as a free service in the hope of landing the contract and recouping the cost of the time there?
Just to be clear, I'm not talking about design time. I charge for that. But if there is no design work required, I'm considering charging for a quote that might take an hour or more to put together.
Thanks for your input.

I don't charge for quotes, shouldn't have to. If say the Department of Transportation wants a quote but they are seeking four bids. You really think they will pay four different people for a quote? You won't get a penny. If you are bidding on a new company for say a monument sign, it's a $30,000 project, you say I won't give you a quote until you pay me $100. You really think they are going to use you or let you quote it?

Charge for site surveys and such of course. If you have to travel a good distance to see the sign, etc. No reason not to charge a fuel charge. But fees for quoting? no way.

 

[visual800]

we do free estimates BUT one year ago I said NO MORE to large construction job quotes. I have wasted too much time and energy in doing those and got nothing in return.

Doing free estimates will either waste time OR land big jobs, 50/50 chance

 

[rjssigns]

Estimates are free and just that, estimates. I'll go on site if it's within my circle of viability. If it's out of range I tell them my trip charge, and I get paid before I leave. I've found it weeds out the tire kickers or those looking for the deal of the century. Not lifting a finger to do anything else unless I get paid. Gotta pick your battles. YMMV

 

[Gino]

Bidding has become MUCH easier then even 5 years ago. Get on Google and pull up streetview, pull up satellite in another window and "measure" the top of the sign. Paste the street view image in Flexi and size the width and that should get you in the ballpark. Usually I can do this while on the phone talking with the customer.

Had an insurance claims adjuster tell me they do this to estimate roof replacement / repair costs. Pretty neat these internet times we live in! Maybe soon we'll be sending drones out to survey signs and talk to customers. Heck, I'm sure before my time is up we'll all have zero need to get out of bed to do anything anymore.

When I was a kid..... I was the remote control for my Dad for the television. I was always changing the channel. Sometimes, I hadda touch the back of the television for better tuning. Yep, no need for him to get outta his chair. Same attitude.

 

[Johnny Best]

Yea, in the future, when they incorporate a toilet in the bed, Texas will be living in the bedroom. He will change his sign company's name to John & Yoko Sign Company.

 

[Sando]

dang, I usually get about 60%... don't know if thats good or bad but 6-8 to 1 seems horrible.

A 25% K.O. rate on quotes is good, If you are getting back over half then I need some of whatever you are having for breakfast.

 

[Texas_Signmaker]

Yea, in the future, when they incorporate a toilet in the bed, Texas will be living in the bedroom. He will change his sign company's name to John & Yoko Sign Company.

Oh but they already have my friend...your just not old enough for it!

 

[solantis]

Isnt there software available that automated the process of manually working out what material is required and then calculate cost / sell price?