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Topic Title: If we were charging for quotes, what would be a suitable cost?
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Created On: 04 February 2013 11:06 AM
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 04 February 2013 11:06 AM
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sparkingchip

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£50
 04 February 2013 11:49 AM
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OMS

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Depends on the job Andy ?

Some big PFI's can rack up tens or even a hundred million in the period from the Invitation to professional dialogue thro' to financial close.

If you ain't on the lucky team, that's an awful lot of money lost - and I use the word team gaurdedly as well

For a bit of housebashing you might include 50 or 100 squid - you certainly wouldn't want to be showing that to a client though

Regards

OMS

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 04 February 2013 05:15 PM
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mark2spark

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I ask customers whether they want a free estimate, or a written quote, which is chargeable.
If they are building a single storey ground floor extension something like 3m x 4m then £75.00, refundable if I get the work.
A free estimate is a ball park verbal figure based on the floor size and if it's a kitchen/bathroom/ or just plain room like a play room.

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 04 February 2013 05:40 PM
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mikejumper

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I don't send out any paperwork until the customer agrees to go ahead with the work.
I work out a price and call them to ask if they want to go ahead.
If they are happy to go ahead I provide a detailed written schedule of the work and the price.
On the domestic scene I think charging for a quote up front may not be the best starting point.
 04 February 2013 10:49 PM
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sparkingchip

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Realistically it can take a couple of hours to quote a days work with a a site visit including travelling time plus preparing and submitting the quote.

Assuming you do't win every job you could have to spend two days quoting four days work, hence a six day week with four days on the tools.

So who pays for the lost jobs? The people who want three or four quotes "for comparison" then give the work to the wife's mates husband get away without paying for your time as you pile the cost onto the jobs won if you give free quotes.

Andy
 05 February 2013 01:04 PM
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Zs

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Andy, I think that is why we are considerably less wealthy than our clients think we are when they get our bills for work.

There is a great deal of uncharged time. The machine still turns behind the scenes.

I don't charge for estimates but I also no longer issue a detailed estimate with a full break down. Simply because my full estimates are very clear and I find them being handed over to the competition and their job of estimating against me is easy. I win work because my estimates are good and clear and on the converse I lose work for the same reasons; it is easy to check prices by going on line and I don't use cheap gear so they get the wrong impression. That tennis club job did my head in because of screwfix on line.

I reckon the decision to charge must be on a case by case but I see where you are coming from.

Do you charge for notifications though? I do. Between £10 and £40. that helps pay the subs.

Back to work, dashed in to see if the scarlet pimpernel was back but he isn't.

Zs
 05 February 2013 01:14 PM
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OMS

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Back to work, dashed in to see if the scarlet pimpernel was back but he isn't.


LoL - don't speak too soon Zs. I'm not sure you've got round to turning my mug upside down at the site table just yet - always MIA unless known otherwise - so two sugars in mine, eh cariad -

We all price for "quoting" or "bidding" - it's usually part of the variable overhead. If you win say one in 4 bids then the overhead on the successful job captures the "lost time" on the other 3. If it's a day per job, and you do 20 similar jobs every year then price for 60 days at your fixed rate and then add that to the fixed rate for that type of job (as a simple method)

regards

OMS

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 05 February 2013 09:11 PM
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slittle

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We don't charge for quotes, as OMS says it's an overhead thing.

However a very good mate of mine who's involved with "government" organisations and the like does charge if he has to travel long distances to produce a quote for them, which I can understand as he can spend a day and £100 worth of diesel just to price the job.

We are lucky because probably 90% of our work isn't priced due to the relationship he have with customers but that's another story.


Stu
 05 February 2013 11:19 PM
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Martynduerden

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I suspect the cost of charging for quotes would need to be high to avoid bankruptcy !

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 06 February 2013 08:46 PM
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sparkingchip

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There used to be a damp course firm locally that had a manager, a office administrator, three surveyor salesmen and two guys actually installing.

Six chiefs and two Injuns how many electrical firms could carry that overhead? But can can become the overheads involved in offering free quotes.

Andy
 06 February 2013 10:08 PM
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baldelectrician

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I give free verbal estimates and detail the works when the client gives the go ahead.

I charge for insurance quotes and take the cost off the job if I get it.

This stops the time wasters.

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baldelectrician.com
 06 February 2013 11:28 PM
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peteTLM

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Originally posted by: sparkingchip

There used to be a damp course firm locally that had a manager, a office administrator, three surveyor salesmen and two guys actually installing.



Six chiefs and two Injuns how many electrical firms could carry that overhead? But can can become the overheads involved in offering free quotes.



Andy


A mate of mine has one of these firms as above- unfortunatly they get a lot of their time wasted due to surveyors employed in house purchases putting a blanket 'damp everywhere' just to cover themselves. Results in 3 quotes by 3 firms to knock the purchase price down.- A waste of time and effort technically by everyone 50% of the time, and a waste of time for 2 of the 3 firms.
My mate asks for proof of house ownership before quoting otherwise they have to pay a £50-100 charge for the quote.

Also the markup on damp coursing is 300%, so they can carry that overhead.

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