- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Coaching Changes
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Paying for a contractor estimate
Posted on 6/10/16 at 11:11 am to The Mick
Posted on 6/10/16 at 11:11 am to The Mick
quote:
They're probably bombarded with people getting estimates and never buying so they're trying to weed out the tire-kickers.
I would think this is the case. My neighbor just got one installed, he had three different companies come out and give him an estimate, to my knowledge he didn't have to pay, but someone said that them charging you should tell you something, but on the flip side.. The company could so busy right now that they don't have the resources to send out people to every person's home who calls and wants an estimate.
My neighbor told me the guys who did his told him they have been extremely busy especially as hurricane season got closer. In fact, they scheduled to come one day but had to call and reschedule a few days later.
0
Posted on 6/10/16 at 11:12 am to bsramzy
quote:Which one did you go with?
I just went through the same process. I called certified security , hmg generators , rescom, and chustz electric. All of them did on site estimates with no fees.
Posted on 6/10/16 at 11:20 am to N2cars
quote:
A detailed proposal with accurate information and true estimate of project cost takes 8-12 hours to prepare. That's including a site visit to determine physical layout and various environmental components. Why would anyone expect this for free?
It's a cost of doing business (all tax deductable, and for that very reason). You want to talk about detailed? Think of general contractors that bid $100,000,000+ construction jobs without issuing the winning bid. Even if they do win, a 5% goof due to not being detailed enough would be a huge blow to the company. And regardless, any contractor worth a shite will have previous bids with near identical circumstances saved and ready to use as a template.
This post was edited on 6/10/16 at 11:22 am
Posted on 6/10/16 at 11:20 am to N2cars
quote:
One point, though:
If I pay for an estimate and/or a detailed price breakdown I would expect the vendor to stick to a firm, fixed price.
So, as always, you get what you pay for.
Ok, but that's a bit of a different animal. Most contractors work on a T&M basis (time/materials). If they agreed to a lump sum with liquidated damages (e.g. penalties for continuing to work past a certain date) I would put the money upfront. The catch for the contractor though is that they are running against the clock to get the job done before they lose money. It's a riskier strategy on their part, and why most residential contractors don't work that way.
Posted on 6/10/16 at 11:24 am to The Mick
quote:
Let me give you another perspective on this. I am part owner of a demolition company as a side venture, we've been in business for about 15 years. Most (I'd say 75%) of the people who call to get estimates to demolish a home or small building are in the process of either buying or selling that property and they want the cost of the demo in the offer they make. They don't tell you it's for that purpose and usually lie when you ask. After Katrina, it was a lot of people trying to collect insurance $, grants, etc. Over the years we've learned we have to absolutely grill the person and even verify ownership of the subject property (and even then they lie). We ask them point blank if this is for real estate purposes or if they're seriously considering having the work done. If they're honest about it, I give them a rough estimate verbally over the phone just to offer some guidance. We have never charged for an estimate but it would cut out a lot of the bullshite and people using you with no intention of ever hiring you. Bottom line, companies charging for estimates aren't always just trying to make an extra buck, there can be a business reason behind the policy.
This has no bearing on the current situation and the goods and services the OP is inquiring about. What is anyone going to do with a whole home generator estimate besides buy a damn generator? Thanks for coming out and providing a price, oh by the way, I'm not actually going to purchase this I'm just using you to get a price so I can tell the next residents how much it would cost if they wanted to put one in.
Posted on 6/10/16 at 11:26 am to AUbagman
quote:
a 5% goof due to not being detailed enough would be a huge blow to the company.
Nah, they would just screw one of their subs and get that money back.
I can understand wanting to charge people for estimates because it can be very time consuming and costly depending on the scope of the work. But actually being able to get away with, probably not gonna happen.
Posted on 6/10/16 at 11:33 am to Puck82
quote:You (and I) don't know the exact reason that particular generator company decided to institute the policy. Not every homeowner that gets an estimate actually has the work done regardless of what it's for. Some people just bullshite around or dream big. Others get the estimate but ultimately can't afford to buy the product/service. Some are trying to get a loan or want it for insurance or a million other scenarios.
This has no bearing on the current situation and the goods and services the OP is inquiring about.
I just threw in my personal scenario to add to the discussion.
Posted on 6/10/16 at 11:36 am to MrLarson
quote:
Nah, they would just screw one of their subs and get that money back.
THIS.
Posted on 6/10/16 at 11:41 am to N2cars
quote:
Time is money, sport.
Exactly. How far is your house from their business? 125 seems reasonable if you are serious about getting the generator considering they are taking it off the back end.
If they have to spend two or three hours coming out and speaking with you then that is time they could have spent doing something else. The OT makes me laugh with all the big boy bullshite about how everyone is a baller but no one thinks someone else's time is worth shite.
I'm a contractor and if someone asks me to do side work, no matter how small it is, I will make at least 500 off of it even it only takes me a day to do it. My time off is worth a lot of money to me.
Posted on 6/10/16 at 11:49 am to Warfarer
quote:
125 seems reasonable if you are serious about getting the generator considering they are taking it off the back end
That's a reasonable strategy assuming you get the job. When there's 4 or 5 other guys that will do the estimate for free, that strategy is pretty terrible.
This post was edited on 6/10/16 at 12:01 pm
Posted on 6/10/16 at 11:51 am to The Mick
It's part of doing business. I work in construction and receive bids all the time. If I call someone and they tell me there's a fee to give me a price their opportunity ends right there. Your consultation fee is me even giving you the opportunity to make money.
This post was edited on 6/10/16 at 11:54 am
Posted on 6/10/16 at 11:54 am to NYNolaguy1
quote:Not when it vastly improves conversion rate.
When there's 4 or 5 other guys that will do the estimate for free, that strategy is pretty terrible
Posted on 6/10/16 at 11:56 am to The Mick
quote:
Not when it vastly improves conversion rate.
That's only for the ones you're given a shot at. What about the percentage of the ones you're not even given consideration of
Posted on 6/10/16 at 12:01 pm to Tbooux
Somewhere wanted to charge me a fee to come out and measure and get an estimate for granite counter tops. Never did have them come out. Fee would have been deducted but what if I ended up not using them? Money down the drain.
Posted on 6/10/16 at 12:01 pm to Puck82
quote:You're not their target customer then and both parties live to see another day. There's more than one way to skin a cat. Some guys throw estimates out all over town hoping to land one. Others try to qualify the lead before spending time and effort providing the estimate. Charging for the estimate is one way to qualify a lead and identify a real buyer who's ready to purchase now. It will alienate a few as well along the way.
I work in construction and receive bids all the time. If I call someone and they tell me there's a fee to give me a price their opportunity ends right there.
Posted on 6/10/16 at 12:03 pm to tiger91
quote:
Somewhere wanted to charge me a fee to come out and measure and get an estimate for granite counter tops. Never did have them come out. Fee would have been deducted but what if I ended up not using them? Money down the drain.
At that point I would have sent them my own shop drawings and specs and asked them for a quote minus the site visit. Ultimately they get less money because now I am the one putting together drawings.
Posted on 6/10/16 at 12:05 pm to The Mick
quote:
You're not their target customer then and both parties live to see another day. There's more than one way to skin a cat. Some guys throw estimates out all over town hoping to land one. Others try to qualify the lead before spending time and effort providing the estimate. Charging for the estimate is one way to qualify a lead and identify a real buyer who's ready to purchase now. It will alienate a few as well along the way.
That strategy only gets you so far. For big ticket govt work or even private work, open bid is the name of the game. Good luck getting money for every bid you send to a city/state entity or a big developer.
Posted on 6/10/16 at 12:11 pm to NYNolaguy1
quote:I disagree with you. You're too close-minded to consider the business strategies involved and that it may be beneficial for some companies to do it.
That strategy only gets you so far.
quote:We're not talking about that. We're talking about a specific industry and a specific target market. Of course the strategy isn't universal to all industries and scenarios.
For big ticket govt work or even private work, open bid is the name of the game. Good luck getting money for every bid you send to a city/state entity or a big developer.
Posted on 6/10/16 at 12:35 pm to NYNolaguy1
quote:
Let me put it to you this way- for an open bid contract, do you think the client pays for each and every bid?
Apples to oranges!
In an open bid project, every single aspect is outline in the bid contract. And that is what is quoted. This guy isn't sending out a contract with specifics, he's asking for that to be given to him.
And in the bid contracts all of you keep yapping about, YES, your company has absolutely spent a ton of money on getting the project bid ready to send out and legally have their assets covered. So to bid on a said contract, all of the work has been done for you on the specs of the job itself.
If there is a single item added to the project after the bid, you all know your price increases, and most times grossly overpaid, because once you are awarded the contract, it can't be "taken away" because the add ons are expensive.
So one is not like the other. The OP should accept a ballpark bid over the phone and deal with it. If he expects someone to come out and give a detailed quote that they'll be forced to adhere to, then they do that for a fee. They aren't in the business of specing in your project, so you can then shop it.
Posted on 6/10/16 at 12:45 pm to Tbooux
another way to look at is that his time is valuable, and he has to get paid for it somehow. his choices are to inflate the charges to someone who hires him, or charge for estimates. in the long run, his prices to a buyer will be lower.
Page 4 of 5
Popular
Back to top
Follow TigerDroppings for LSU Football News