estimating over phone or driving to house ??

[itswillist]

Wow ! Lately I've been losing ATLEAST one day a week driving around looking at jobs, placing bids, and maybe landing half of those jobs (maybe) Do you guys think it would be better just to get all the details you could over the phone and give them a price right on the spot ?? I know the advantages of meeting each person and all, but the time and money I'm losing looking at all these lil. residential jobs would be worth taking a lil. hit every now and then if you under bid a lil. bit .. Am I wrong ? Couldn't you tell them "If everything you say is true then it will be this price, If I get there and it's really this ..... than we will have to bill for the difference ???? Any words of wisdom ???

 

[PressurePros]

Your closing ratio is good at 50%. Giving phone estimate plan on it dropping to 25% or lower. Now look at it this way, you'l gain an extra day to do work and you'll probably use that day to sit around and figure out how to get more business. You make what $400 per day? $800? So in the best case scenario you can make an extra $400-$800 but are sacrificing 50% of your work. Thats a loser no matter how you slice it. Welcome to residential work. Wait until you get 40+ calls per week. You have to figure out a method of efficiency.

- Plan estimates for certain times.
- Plot them geographically
- Establish a minimum job. Anything under $450 I reject.
- Use your website as a marketing filter and make sure that your website conveys that you aren't a guy that runs around cleaning cat poop from old ladies' stoops.
- Have a list of questions ready for the homeowner so you can qualify both them and the job.

I have read some guys say they tell homeowners to email pictures. That makes life easier for the business owner but not the customer. If you told me to do that, I would tell you how I was gonna get right on that and call the next guy in line.

The above may work and close some jobs but remember this about marketing, about sales, about anything you peddle.. People buy from whom they trust. If you don't want to go out and do estimates/proposals you better make sure you have a professionally designed, excellently written website with easy to follow calls to action, a reputation, and some serious bucks for brand marketing. Otherwise your just another pressure washing hack (as perceived by customer) and you are saying to the customer "Here judge me based on the price I am going to give you".

 

[john orr]

My estimating formula works really well for me. When someone calls, I ask if they are wanting an estimate or an exact quote. Are they just trying to get an idea on price for planning, or are they ready to have the work done. If they want, I offer to estimate over the phone, with the offer to come by for an exact quote. I explain that by estimating by phone, I am able to hold down costs/prices and they understand.

Most people just want a ballpark estimate and are fine with that. If they are serious, they will have me come by for a quote. I am not really concerned about "shoppers", since they will be shoppers whether I give my price over the phone or in person.

The key to my formula, I think, is that all calls come to my cell phone, and I always try to answer when it rings. So few pw companies answer their phone and people have to leave a message and hope for an eventual return call that when they actually speak to a real person, they are relieved.

FYI, my estimate is based on square footage, so when asked for a price, I ask the size of their home. Very easy to estimate. Drives are a set price for an "average" drive (2 cars wide, 2 cars deep). Fences are priced by the linear foot. Fence posts are (usually) 8' apart. The customer can count sections and multiply by 8. Decks require a visit due to variables.

I hope my formula helps.

 

[PressurePros]

John, you have ben around for awhile. Most of your work is probably by referral? Or do you still get a lot of cold calls?

 

[john orr]

Ken, an awful lot of referrals, but I have small ads w/coupons in 2 phone books. These ads, plus the internet - either from Angies List, Service Magic or from surfing - generate a fair number of calls and emails. I treat all calls the same - and have similar results for all. Most people are just so relieved to actually talk to a real human being (yes, I qualify) that an appointment is set on the first call.

 

[PressurePros]

I hear you about the live answer thing, that must help. I never worry about bidding against others because about 75% of the time I am the only one that calls back or visits. I cannot understand that. Are guys that unorganized that they can't call back to follow up with leads? Blows me away.

 

[5 Star Johnny]

I agree 100% about answering the phone right away to increase your sales opportunity! Perhaps I'm "old school" but I don't believe in giving quotes over the phone, or having pricing schedules listed on a web site or otherwise. This may not apply to all contractors reading this, but I'll offer my $.02 worth anyway.

My experience with giving estimates over the phone, or "off the cuff" pricing on location, is that the closing ratio is 25% or less. I will occasionally give a phone estimate if the caller will not give me an appointment after several requests to do so. I already know by the time I hang up the phone that the chances of hearing from this prospect again are less than 5%. In most cases, before I have given them a "phone estimate", I have engaged them on the phone for 5 - 10 minutes without success in retrieving an address, last name or phone number. It's basically pointless, but I'm the ultimate optimist.

While we are not the largest contractor in our market, we are certainly in the top 3 - 5. We charge top dollar for our service and produce quality results. I point this out not to boast, but to qualify our method of sales. I INSIST on going to every location to view, measure & SELL all call-in requests. My closing ratio for Face-to-Face is 75%. Yes, it irritates me too if I drive 40+ miles for an estimate that doesn't pan out. If at all possible, I will combine this trip with a visit to an existing client, if only to say HI or update them on new info, product, etc. What a lot of contractors don't realize is that if you give pricing over the phone and you're not the cheapest, the only impression you leave with the prospect is that you're too expensive. If you meet with them personally and do your best sales job, and you're still too expensive, you've at least had the opportunity to explain why your service demands higher pricing. Their less likely to state this to someone else because they might come off sounding like a "price shopper". It saves your company's integrity.

Yes, an occasional phone price is necessary, but should not be a regular selling tool. If you receive 40+ calls weekly and can't handle the load, you need to hire a salesperson. I believe this is the exception rather than the rule. If you refuse to give a phone estimate to 1 or 2 prospects a week, but meet personally with the other 6 - 10, you'll be further ahead. Organize, plan, prepare. Selling your personality, performance and reputation will produce more than selling on price. Good Luck!

 

[john orr]

I should mention that my formula is only applied to residential customers. All commercial quotes are in-person.