Adobe Stock/Andy Dean
Adobe Stock/Andy Dean

Some clients may take great exception to the price your business quotes for a potential remodeling project. Unaware of the other side of the business, they may see the sticker price and object. These situations can largely be avoided if a budget is stated before an estimate is made. If the client's idea of a budget is unrealistic and low, it will be easy for a contractor to see the client may not be a good fit.

If a budget is not stated ahead of time, contractors may wind up in a similar situation to an example shared by Michael Stone on Markup and Profit. Stone writes about a contractor who a potential client labels "delusional" and "dishonest" for the price they have quoted. Stone suggested the situation can be avoided by addressing budget in the sales presentation to the potential client.

I [often] talk about the four questions you need to ask in your sales presentation. One of those questions is asking the budget range for the project. If you don't get an answer before you take the time to estimate a project, you'll waste time and trouble.

One more thought: It appears the contractor emailed the quote. Quotes should be presented in person, not by email. If he'd presented it in person, he'd have had to deal with a shocked client which isn't pleasant, but he'd also have the opportunity to question why his competitors were so much lower. He'd be able to ask questions about what was and wasn't included, and either explain to the client the risks of going with a significantly lower quote, or discover that the competition quoted a much smaller job. If you want to make the sale, present the quote in person.

Don't let notes like this bother you, and don't start worrying about the quotes you're giving. If your estimate is accurate and you're using the right markup, then the price you quote is the price you need for that project. Let your competition lose money on the job.

Read More