Remodelers must stop providing free estimates to potential customers, David Lupberger argues in a guest post for Markup and Profit. Lupberger argues it's free consulting and that remodelers need to stop offering as many as 15 hours of work designing and estimating projects before a contract is ever signed. Just as doctors don't offer free physicals and dentists don't offer free checkups, remodelers shouldn't offer free estimates, Lupberger argues. The time of a remodeler is too valuable to give away this value to a potential for free.
The question is how do you start charging for something you once gave away? It's a two-step process: first convince yourself; then convince your clients. You have to become convinced that you are providing a valuable service to your client during the estimating and design development phase.
Think of it this way. Your expertise is saving the client money. When I was remodeling, as soon as I understood what a client wanted, I would start consulting with my best subs. I'd talk to the electrical sub, plumber, and the HVAC contractor to find the most efficient and effective way to do what the clients wanted.
Lupberger said a way to enforce charging for design estimates is by offering the first visit for free. In that first visit, Lupberger would do his due diligence and asked questions to see if he wanted the job. At the end of the appointment, he would inform potential clients the next step in the process would be to sign a design agreement and the project could develop from there.
Getting a signed design agreement creates some powerful results. When the homeowner writes a check (however small), they are off the market, because they won't sign a design agreement with more than one contractor. They are now your customer. With a design agreement, free consulting stops after the first sales call.
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