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From The Sales Success Audio Series For Professional
Builders, Remodelers & Renovators ...
“How One Builder / Remodeler Increased
His Business By
Eliminating Free Estimates”
Many builders and remodelers struggle with the idea of charging for estimates.
The general consensus is you can either charge for estimates, and risk losing
business, or you can provide free estimates, which neither differentiates your
company from the competition nor guarantees you'll actually get the job.
Aaron Skoczen, a member of the Southern Arizona Home Builders Association,
struggled with the same concerns until he eliminated his 'free estimates' on a
trial basis for a couple of months.
By the end of the two months, Aaron was convinced, and he never switched back.
He now schedules fewer estimates than ever before and
because of it, he now has more time for his business and less stress!
Aaron explains exactly how he accomplished this turnaround and why, two years later,
he hasn't looked back.
How Aaron Got Rid of Free Estimates In Less Than 60 Days!
"The focus is to create value in the eyes of the client," Aaron explains.
"First, when a homeowner asks us if we do free estimates, we'll tell them,
'We're not going to give you [just] a number.'
"We'll provide them more than just that - we'll put together a professional
package that gives them information on their house, their zoning, their setbacks,"
he says.
And this provides Araon with three distinct advantages over his competition.
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He now meets with his prospects knowing he's being paid for the opportunity
to present his services. He can then take the time other contractors
can't to completely understand the project.
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He immediately becomes 'the contractor to beat' regardless of any
lower-priced bids. He does this by providing valuable, customized
information while other contractors provide just a 'ball-park' number.
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He quickly creates an established business relationship. The
homeowner has now paid Aaron for a service and then is more likely to
continue the relationship over a contractor who has merely given them a
'free estimate.'
What Aaron Knows That Most Builders & Remodelers Don't ...
Aaron understands something most industry members miss -
homeowners aren't looking for the lowest price or 'freebies' when shopping
for contractors.
Even though they tend to ask about price or free estimates right away, they're
actually looking for the contractor who provides the best value for the money.
Aaron establishes this value right away and, doing so, allows him to
reduce the number of estimates he needs to give and
wins more projects.
This provides him more time to spend on his business, rather than chasing free
estimates.
And how much does Aaron charge?
"$65."
"I don't know where we actually started with $65 but, in my opinion, it doesn't
matter if it's $20, $65 or $100."
"[The point] is to just get out and meet with them.
Rip Up Your Free Estimates And Give Your
Prospects What They Really Want
"We tell them, 'We're not going to give you an estimate or a number...however,
at the right point in time we will give you a full proposal, which will have an
exact cost to the penny and that will never change."
Again, Aaron ups the ante by letting the homeowner know, right away,
they're going to get the best value with him - a complete proposal with a firm
price.
When most contractors are worried about handing out the right ball-park number,
Aaron is setting up for the long-haul and promises the homeowner
exactly what they want - the final cost for the project.
Rather than compete on price, Aaron sets the expectation for what it takes to
arrive at the final cost accurately.
If you're struggling with free estimates that result in little-to-no business,
or projects with minimal margins, take the same challenge Aaron did.
Give it a shot for a couple of months and see what happens. Aaron did, and his
business is more successful because of it!
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