I tell myself over and over that it's better to over-estimate than under, yet I still do it. Character flaw, I feel sorry for people sometimes and end up working to cheap.
I've gotten things done quicker than I thought I would more often than the other way around. As I charge by the hour, I've ended up with jobs not paying as much as I figured, or my schedule opening up from time to time.
On some of our larger jobs, where the customer had a certain budget in mind, it has worked out nicely. We come in under budget and get more work on the spot to use up more of the money the customer intended to spend. On the smaller stuff, ending up with a 1/2 day instead of a planned full one doesn't make for happy happy joy joy.
It's all about how much you have in front of you.
ATM I'm fortunate to be very busy, so when I price I have the luxury of pricing high as I'm not too bothered if I get it or not.
I'm moving into a transition phase in the new year, new tax regime, employing someone properly.
I've priced jobs when I've had nothing in the diary, especially when I first moved here, and after the financial crisis, pages of emptiness in front of me. You doubt yourself a lot. It's a recipe for a lot of self recrimination.
Hard to guess market value, and get apples to apples. I need to do less of a thorough job (anal about low impact, good cleanup).
One job I bid a bit high at 1400, the bid winner, lic insured bonded, 600. Was there over a day, with a groundie, put on ground only. I lost, the other guy lost, homeowner won.
I've gotten better at pricing, but still miss the odd one. Onward and upwards. I do hate when the customer has someone else's miss as a bid and throws it in your face with a , "what are you doing trying to rip me off" attitude. I find the small or minimum charge jobs to be the worst. I let people know if it doesn't seem worth it to them, that any less money doesn't seem worth it to me.
Sean, although I prefer to do jobs the same way, I give the customer options on how low impact and cleaned up the job is. Some people would rather fill a hole in the yard than pay me to rope things down. Some want all the chips gone from a stump-grinding and dirt and seed installed. More of my time = more money.
It's a compromise between making the customer happy, making a living, and what the market will bear. And as Mick said, "how much you have in front of you", or as I would rather look at it...how much do you want that particular job: some jobs are great advertisement and there are others I'd choose not do/be seen doing what the homeowner wants done.
As a side note, I only climb; if I believe a customer can get a better deal from someone using a bucket I don't hesitate to tell them. I end up getting over 1/2 of these anyway as the customer knows I am looking out for them as well as myself.
etimating services: to some it's a hassle, to some it's a hustle - I just prefer straight forward honesty and my best guess.
That is very true Justin, adapting is the key. Being a good sales person is about being good at talking to talking to people, and every person is different. There are times to be the alpha talker, and there are times to just listen. Hell, you don't even have to know what you are talking about as long as you are confident. You can earn a job just by bs'ing on off tangent subjects that have nothing to do with the work.
I tell myself over and over that it's better to over-estimate than under, yet I still do it. Character flaw, I feel sorry for people sometimes and end up working to cheap.
Likewise, sometimes when I'm on a quote the number that I come up with mentally just sounds too big and I cant quite spit it out.... so I trim it down.
I was looking at invoices from my first year in business recently. Bizarre. I remembered some of the jobs and was able to look at the money I was charging. Some jobs I was over double what I Should have charged, and some jobs I didn't even charge half of what it was worth. I had zero idea of estimating time.
^yup, I recently did a job for $3800 that I had previously quoted for $1800 (nearly 2 years prior). The custy never mentioned anything- hes either too nice of a guy or never received the paper (quote was given to a 3rd party). In hindsight $3800 was still too lean.
Just got off a job I est 2k for.. I was spot on. My "second thoughts" said I was high. Nope. I was right on.
Sometimes I still doubt myself. Often times, my high bid is right.
Clean up is where I am soft. I just happen to have a good team that really pulls hard in that area.
My biggest weakness is staying interested. Finding it harder and harder. Don't get me wrong, I do love my job and the more interesting climbs/jobs the better.
It's the run of the mill stuff I struggle with sometime, but as we know the bread and butter jobs still pay the bills.
Nobody does. There is the challenge of meeting what you need hourly, being low enough to get the job within your acceptable range, and not leaving money on the table.
I would love more hourly jobs.
Second to last job I bid hourly was a huge , topped fir removal over a building, on a steep slope above his house. He is a successful, water front property owner that said he understood the complexity of craning out a tipping over, decayed 4'+ dbh tree, and the other guy who looked at it talked the talk, but wasn't sure if the guy could walk the walk. I gave him a bid around $3000. Haven't heard since.
Would be interesting to work in a world without insurance, where you had to rely on your contractor's skill to prevent damage, and pocketbook and trustworthiness to repair damage.
It would be interesting for sure but the price of admission would keep everyone out of the game. I'd hate to be financially responsible for the havoc I could create. Losing one tree the wrong way could run up a bill bigger then my annual gross.
Contractors would take less risks, and homeowners would be more invested in a skilled contractor. I had a guy tell me that they would be out of the house at the time of removal, so they are going with the low bid. If the tree cuts the kitchen in half, they will get it newly remodeled by insurance.
Would he go with low bid if there was no insurance?
I once had a customer ask if I would smash a fishing boat with a tree I was taking down. It was his wife's former deceased husbands boat and she wouldn't get rid of it. He figured smashing it would seal the deal. He was mighty proud to show me the deceased husbands 10 thousand dollar pool table that he uses the heck out of. He was a piece of crap.
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.