Feb 18
2019
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Free Estimates?Posted by Steve Marr in Untagged |
Many businesses struggle with the idea of offering free estimates. However, since businesses have different business models; the wisdom of offering free estimates versus paid estimates will differ.
I checked prices with local carpet cleaners. One had a flat price of $129 for any three rooms. Another posted a price list of any three rooms for $119 but specified that each room must be under 250 square feet. The same site posted pricing for halls, steps, walk-in closets, moving furniture, etc. Both sites were designed to avoid sending someone out for an estimate. The flat price company might lose money, but an occasional loss is less than the $40 cost the business assumes with each free estimate. Plus, the estimator makes no money for the company while making the estimate.
Large commercial properties need to be treated differently. Most carpet cleaners I know don’t make use of estimates. They simply quote a flat price. Their experience gives them confidence that the flat rate price will be correct. Then, when a customer calls; the carpet cleaner has an opportunity to close a sale. If time slips by after the phone call, the deal may expire. It is much better to set an appointment and send the cleaning crew than set an appointment and hope that an estimate brings a sale.