Free Construction Estimates: Gift or Opportunity?
I know many of you probably read Mark Buckshon’s Construction Marketing Ideas blog. Mark’s focus includes not just helping commercial construction companies, but also the residential ones. One of the pieces of advice he gives is, “not to give free estimate.” One of his recent posts repeated that advice.
So after reading this post, I decided to add my two cents to the conversation. I thought it was worth posting my comment to Mark’s article here, because it speaks to how reciprocation works (which I wrote about in my epic post on “What you don’t know about marketing”. Here is what I said:
“I’ve heard this “don’t give free estimates advice” on this site a couple times and i wanted to address the topic from my perspective. Is there any data that supports the claim that contractors that give out free estimates hurt their business? Speaking from someone who has had work done on their house, I think it would be foolish not to give out free estimates.
Like any profession, your average contractor is not the best contractor. Let me give you an example.
I had three contractors come to my house and give me an estimate to create a half wall. Not one of them bothered to go in my basement to see if there were any pipes coming up that wall. There were. Only one of the contractors even considered that the electric may need to be rewired to power the light on the ceiling. These contractors gave estimates that were shortsighted and inaccurate.
I paid a designer to provide a preliminary design and estimate for some work on my kitchen. I established a budget with the designer. Her estimate came in $11,000 more than my budget. When I questioned her, she said, “well, often clients have more money than they tell me.”
I had a contractor (highly recommended by my interior designer) come to build a closet around a closet system we have. He built the closet, but the system could not fit in it. So, i actually paid him more to fix it. He did the work again, but never measured the closet system (it still didn’t fit). After a heated argument, he admitted he never measured and ultimately paid me my money back. I then fired the interior designer just to make his source of referrals feel some pain.
When I ask a contractor to define the “unknowns that may cost me more,” the response is often that their estimate only covers the defined scope.
I had painters give me estimates to paint my kitchen. one was $400, one was $600, and one was $2,000. I went with $2,000 because the painting contractor gave me a “warm and fuzzy.” I knew if I picked this guy, I wouldn’t have to worry about, well, about anything. It would just get done quickly and professionally. You see, I didn’t buy paint on my walls. I’m bought “as little disruption to my life as possible.” Price is only an issue when you don’t differentiate yourself from the competition. If you are offering the same thing as everybody else, all i have to judge you on is price.
If i was a contractor I would provide free estimates, because that’s an opportunity to differentiate yourself. Any opportunity to get in front of a client is an opportunity to differentiate yourself. If I walked into your house, I would take you around and explain my estimate. My estimate would be more detailed than anyone else’s (i would include hours, rates, materials, etc.). In addition, I would define all the unknowns and provide not just an estimate, but a not to exceed price and schedule. When other contractors walk into that house, they will be walking into a minefield. The client is armed with enough knowledge to identify the average contractor as just that…average.
You are not “giving” when what you give is expected. When the waiter gives me a mint after my dinner, thats not generosity. When the waiter gives me a mint, starts to walk away, then turns and gives me a few extra mints…that’s generosity. Its unexpected.”
Whether you agree or disagree, you can join in on the conversation over at Mark’s blog.
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