the psychology of giving estimates..

[Desk Jockey]

Tisk, tisk. I want your money too.
Is any forth coming?

Damn, you sound like my wife.

 

[ruff]

#1, or #2?

 

[Desk Jockey]

LOL both!

 

[Nate The Great]

Good grief, I do the same thing. I start dreaming of moving to Hawaii with Nate, smoking pot and working 10 hours a week like he does.

Woah Woah Woah there bud... I've been drug free my entire life, a bit of a square if you'd call it... But the rest is true... (at least in my pops eyes)...

Sometimes I wish I had a white Christmas, then I wake the fook up and take a hot shower.... Stupie to live in the cold... Like the saying goes, "if I were to be homeless, what better place to be than Hawaii"...

I'll never be homeless because Hawaii is home....but I could be house less if I don't put in my 10 hours a week....

 

[ruff]

You guys just don't grasp how hard it is to be Nate.
The commute is a total bitch:

 

[TConway]

This is a really cool thread if you think about it. It just goes to show that no matter how polished a person is, I think we all have a little fear of rejection, or doubt our pricing structure.

I know for myself I still find it uncomfortable to go OUT and scout for work, it is so much easier when people call because you were recommended to them by a customer you have done work for, I think it automatically just gives you that little boost in confidence.

Mikey not poking fun or putting you down at all, I think this is just a really good topic and a great example to all. It opened my eyes a bit, and I am actually really glad you posted it. Looking back we so easily become comfortable after we have established a biz that starts to support our families, just how hard and uncomfortable it is to try and break into a new market and build a new biz.

This is just a "REAL" thread and a lot can relate to your situation...keep up the good work as you already know it will pay off

 

[Mikey P]

Tom

Nobody pokes hard at me, than me..

I'm off to a two roomer and sofa around the corner, then to the wrap guy for measurements then to Walmart to buy a case of beer for each of my landscapers then home to clean up the mess since Paula has been gone all week..

and to fit chains on my truck so we can go up to Tahoe tomorrow for Cheap Trick, after I do a job for a Santa Cruzen who has a cabin in South Shore..


Not much time to over think it all.

 

[Mike Draper]

Nates cat

 

[Desk Jockey]

Ruhht Roohh!!!

@Nate The Great

 

[Nate The Great]

Nates cat
View attachment 10037

 

[Mikey P]

Santa Cruzen rescheduled.... Big snow storm on the way

 

[Mike Draper]

You need a snowmobile Mike. You will never have more fun in your life.

 

[Jimmy L]

I'm moving down to Marty's area so I can put him out of business. But I guess I'll have to learn the language first.

 

[Mikey P]

Questions for Lockhart and other room pricers.

Mike are you sticking with your $75 a room price?
Do people freak on bed rooms or realize that their getting a deal on living or larger rooms?
When does a room become two?
What if the room is just 5 or ten feet over your limit?
How often do you feel short changed?
Protection included?
Are your first time phone conversations short and sweet or long because everyone else is $49 a room?

 

[Ron K]

Mike in hind sight..
Who's the compitetion?
What do they charge?
Your old reputation in Cruz is useless in Newville. Coming in with your new shiny TM in my opinion may be looked at with resentment by the locals. "techies driving the price up on everything" " You're not in Kansas anymore"
Good Luck though and don't think washing rugs is the answer.

 

[Old Coastie]

Mike, Given the extra risk and effort associated with cold weather cleaning, I don't see why you should reduce your prices.

Marty, I am having the same issues with having employees. Gross is up, net not much more. However, the business is feeding seven souls now and for that, I praise God each morning.

Some days ya just have to have one helping; not the same as goin' hungry.

 

[Kellie Hiler]

I've been told by a friend, also in the biz that I need to raise my prices based on the simple fact that I've never lost an estimate. We are not the highest priced nor are we the lowest. I go in with confidence and really don't have a set price, I more or less go by sq. footage, how often they are going to clean, how well it has been maintained prior, and other factors and base my price off all of that. That same friend who told me I need to raise my prices seems to be pretty darn slow most of the time, while we stay steady during the winter mostly commercial, and carpet repairs, pet accidents and what not.
If the prospective customer was a referral, I pretty much know that the job is mine, because our customers always rave about us. They also know that they will get a fair rate because we offer a friends and family referral discount.
I am slowly raising our prices and no one has complained.
I would say that until you have established your name, start out a "lower" price and then slowly raise your prices.

 

[Mikey P]

Mike in hind sight..
Who's the compitetion?
What do they charge?
Your old reputation in Cruz is useless in Newville. Coming in with your new shiny TM in my opinion may be looked at with resentment by the locals. "techies driving the price up on everything" " You're not in Kansas anymore"
Good Luck though and don't think washing rugs is the answer.

You won't find one instance of me bagging on the natives here.

Useless?


You obviously don't know Yelp..

 

[Mikey P]

Kellie it sounds like you are pre estimating most new jobs, correct?

 

[Kellie Hiler]

Kellie it sounds like you are pre estimating most new jobs, correct?

Commercial jobs yes, residential probably about 50% of the time. Referrals don't typically ask for an estimate. When it's a new customer, I usually tell them we will come do the estimate and if they are happy with the price we can do it right then and there. Never been turned down. Occasionally they will get a few more estimates along with ours and call us back and say that they did find someone cheaper but we sounded more knowledgeable and professional and they want to use us.

 

[Goomer]

Questions for Lockhart and other room pricers.

Mike are you sticking with your $75 a room price?
Do people freak on bed rooms or realize that their getting a deal on living or larger rooms?
When does a room become two?
What if the room is just 5 or ten feet over your limit?
How often do you feel short changed?
Protection included?
Are your first time phone conversations short and sweet or long because everyone else is $49 a room?

"Room pricer" does not necessarily mean you have to charge the same price for every room, which is what will most likely be what leads to the small bedroom freak-out, unless it's the only room being done, where a minimum charge is more justifiable even for just one room, because the concept of a "minimum charge" is easily understood.

The same rate per room regardless of the number of rooms is too easily exposed as being illogical, which it is, and there is no defense or bullshit that can justify charging the same for a large room, as one that is 1/3 it's size, unless of course the price per room is CHEAP enough........... if that is the road you want to go down.

I like "tier" pricing my rooms, where my minimum charge will be adequate for most rooms up to x sqft., and x being enough to cover the most common size living room you encounter, as that is the room that will bite you in the ass most often.

Additional areas/rooms up to x sq ft are cheaper than the firsts room minimum, which makes sense for many reasons.

"Double" room is minimum+2nd tier price per room, or 2 x 2 nd tier lower price if minimum is already met and applied to other rooms/areas.

You could get away with keeping your phone calls "short and sweet" when you can easily command a premium and not give a fook, but those days are over.

Your a nobody without the safety net of premium pricing.

Suck it up and decide what rates are "fair" and in the best interest of growth without expecting yourself to accept too many shortcuts because that's simply not what you do, and you will find lessening your standards and skipping steps to be disharmonious, and you will most likely "do it anyway".

"Fair" pricings main safety net will be the question you do ask to get a better understanding of the layout.

Combo living/dining rooms are what I found to most often be the killer as most customers will conveniently call it just a living room, so I always like to ask if a living room is just that, or combo'ed with a dining area or other space.

Second areas most often conveniently forgot by customers are hallways, so I now make it a point to ask all the time to cover my ass.

 

[Chris A]

What Goomer said! Minimum charge covers first room, plus x per room after that. We run a lot of 3 room specials on our postcards and it works well

 

[Mike Draper]

I gave my last in home bid to a lady this summer. She called and I went over after a 11 hour day of work. She gave me the tour and said it sounded really nice " I'm sure you do a great job, my mom really loved your work" she said. I asked her what day would work for her schedule and she said I'm getting 4 more bids. Going with the least expensive. I told her my prices on the phone and I could tell she didn't want to listen. She just wanted an exact price and to waste my time. I've decided during my 8 months of crazy busy time during the year, no more on site residential bids.
I used to insist on coming over and giving bids. Most of the time I would get the job. Through the years I have gotten better at on phone estimates and have tried to do whatever I can to not come over. I've found the last 2 years that the people that still want me to come over are very price conscious and only go with me half the time, if that. I realized something, in the beginning when I was out giving bids at homes, most of those people wold have been happy with a close estimate on the phone, the others probably won't use me anyhow as we are the most expensive in town. .35 / I still work on the truck and time is very limited between the family and business most of the year now.

 

[jcooper]

You can do this however YOU want.

We simply charge $$ per room for up to XXX sqft. This makes it easy over phone. If the room is larger than XXX they are charged a sqft price.

Keep it as simple as possible. You are either going to be charged(example) 40 per room or .25 cents(example) per/sqft.

 

[Mikey P]

I'm very good at giving square foot prices over the phone actually..


Think I'll stick to my guns.


Gomer I really appreciate your and the time it took to write it all out but your explanation gave me a headache, can't imagine what a customer is thinking or hearing..

 

[Ron K]

Mike you are right I don't know Yelp. I'd say over half the people on this board don't understand it and think it is a scam.
I also would never think you would bag on anyone. What I mean is old habits (Local Businesses) die slowly for the natives, I know.
As far as pricing goes for any of us. Don't we all charge by the hour?
If it's such a conundrum for you, don't let that big head explode, and give customers a choice Platinum, gold and silver levels of service and see what fly's. You won't go broke during your bata test and you'll sleep better.

You won't find one instance of me bagging on the natives here.
You obviously don't know Yelp..

 

[Vincent Feehan]

Give it time Mike, You will be fine.. Your charm will work

 

[Mikey P]

I know Vince


Things are falling into place rather nicely actually.



Just not one to sit around..

 

[Mike Draper]

Clients seem to find something unique about mikes big head, something charming about him.

 

[renegade_cowboy]

Make sure you keep a report on all the discounts you can, so you can write them off.