Hi,
I’m still trying to get the hang of sizing up a job & quoting fairly accurately…
When a client calls up about a new job, and they want to know a price – sometimes I give them a price site-unseen, but sometimes I tell them that I charge by the hour, and would have to see the job before I could quote.
How do you guys handle this – do you give the client a flat rate for jobs (ie. $150 for a door installation…) or do you just charge by the hour after the fact?
Thanks in advance
Replies
People most always want to know the final price. Correct me if I'm wrong, but if you give them an hourly rate, they are gonna ask you real quick, "How long it is gonna take?" And you kind of end up in the same boat as a flat rate because if you said about 3 hrs at $40 an hour, you end up feeling guilty about charging much more than 3 hrs worth even if the old door was installed by some over zealous BTer who used 100 screws and then epoxied over the heads... :-) That would be for something fairly simple like the door replacement example you gave. For things that are more complicated, you need some kind of contract with "hidden damages" and "unforeseen circumstances" clauses. Besides, if you give an estimate for $120 - it is just that - and estimate.
Same place same boat.
Yes people using want a price.
But I am learning to do some somethings with a price range.
For example I had a stool and sink facuet to fix. The faucet was unual and gave a price for replace the washers/seal or if it was not practical to replace the unit. Part extra.
As it turned out the unit was too corroded to easy fix.
However, as in several other cases I have run into the stop valves where bad and the supply lines where chrome over copper and would they where two short to adjust for a different faucet.
Now the HO paid for the extra parts. but replacing the stop valves and supply lines where a pain and the job took too long.
So on future jobs of that type I am going to point out the possibility of having to replace the stops and if so there will be an extra cost. Also I am going to start carrying a couple of common stops and supply lines for those type of projects.
PS the type of jobs that I have been doing 1/2 day to day length projects although most people want a price I think that they are more concerned if it is going to be a $100 or $1000 job and they aren't really looking for cheap.But my experience so far has been limited and I started in an upper class area.More they are just glad to get someone out to do the small jobs.
I am still trying to figure the same thing out.
The problem is that people get a figure planted in their mind. No matter how much you explain that you gave them an estimate not a bid, there is still potential problems.
You say $150 for the door installation and then find out later the door is an odd size opening and the plaster varies 3/4" in depth on the inside and the stucco is the same situation on the outside. (Been there done that, got the T-shirt). You bill $300 and the client thinks you lowballed the estimate to get the bid. If you fudge and quote high, then you might price yourself out. If you quote an hourly rate, it doesn't give them a clue.
A friend of mine asked for an estimate in remodeling his basement. I gave an off the cuff figure, stressing it was an estimate only and that I would spend more time to do an exact bid if he was interested. He later said he may do part himself, but didn't know what parts he would have time for. I didn't know what to bid, so we verbally agreed on a hourly rate. I ended up doing the whole job.
When I got done and billed him, I was considerably over the estimate I pulled out of my wazoo. He is in the grain business and has to quote prices all the time and said he couldn't get away with being the same percentage off. He is angry and our relationship is strained, but I will eventually get paid. If I would have drawn the wrong client, I would have either had to give up some $$ or gone to court.
I told another friend who is in an unrelated business and he suggested that if I ever get into the same situation again, I should have a mutually negotiated signed contract before starting work.
I do alot of small jobs like you and it seems to be ridiculous to make someone sign a contract for a $150 job, especially since I think around here it might make some of them suspicious. I bought a book which was suggested on BT called Smart Business for Contractors. It gives examples of simple one page "Letters of Agreement". I have been doing business for ten years full time on word of mouth and know I need to start doing this before I get bit hard.
Sorry for rambling and I apologize for not being able to give you a good answer to your questions. I am in the same boat and would like your and others input.
I will give some sort of idea of cost over the phone for a small job and stress that the 'estimate' is for an ideal installation. Problems cost more.
For any work I wont give a cost unless I see it. People who know nothing are terrible at describing a job, people also lie in order to get someone to do it or get it cheaper.
All my work is quoted. No breakdown on cost. That way I avoid anyone trying to screw me down on any aspect of the cost makeup. If I told people that I charged for example $80 an hour, they would freak. Tell them the whole thing cost $200, worked out at the same rate.....no problem.
Any weird bits, extra work needed, problems etc get a quoted number given to remedy. This is all laid out in the 'terms' I give in the quote. No agree to the extra to fix the rot, substandard prior work etc etc.........it doesnt get done.
As anyone who has done small work knows, the simplest looking thing can wind up taking forever and cost a heap.
Whatever it was.................I didnt do it.
Sorry to hear about what happened to you and your friend. I have a similar situation, except it's not with a friend. I gave the client a quote and he's said it was much more then he thought it would be. So then he asked me if I would work at an hourly rate and he will work along with me. I agreed. My friend said that is not a good idea, it's not professional. I can see some problems with this. One thing I told the client and was the quality will be the average of the two of us. I said this as best I could. He said he will call me to confirm. Not sure what I should do now.
So far quoting sounds better then hourly rate. Yes, when I say $30.00 an hour I do see a grimace on there face. I do have a few repeat customers and most of them is on an hourly rate. They don't even ask me "about how much" any more.
I heard someone say a good deal is when both parties are happy. So when someone accepts your quote the assumption he is at least OK with it. Now if you get done before schedule then I would consider this a good deal.
This is what I learned.
With an hourly rate you are OK with it. The question is will the client be happy when the job is done.
One thing I am going to do is if I feel a job can be done hourly I will ask if he wants to do this on an hourly rate and if he ask how long I'm going to say dunno.
I thank you all for your input.