When I hear someone start asking about prices right away, or someone that is just looking for a ballpark over the phone, or someone who tells me how easy the work is and how they just don't feel like doing it themselves, I will usually mention that we are not the cheapest contractor and that we sell our work based on great service and solid work instead of just a cheap price.  Those people usually say "Ok, thanks" and hang up because they were only looking for the lowest price.  Great, it saved me a trip.

For the other customers who don't come off as only looking for the cheapest contractor out there, how do you word it?  

I don't want to just come out and tell all customers that I am not the cheapest because even a good customer who is willing to pay more for good work might think that I am only telling him that because I am way too high.  Ya know what I mean?  I wouldn't want to scare off good customers.  That's why I am curious how you word it.

I'm the paid estimator for a roofing company.  Our rates are not quite as high as yours, but we have a minimum charge and we tell our clients upfront: to get two men and a truck with all their tools, materials, and equipment on it to roll out takes that minimum fee.   We do give free roof surveys, repair estimates, and re roof prices.  We give a free report on the condition of their roof, complete with photos.  Our clients understand exactly what they're getting and they sign a contract before we schedule any work to be done.  They get honest value for their money, and we guarantee all work unless specifically noted in the contract.

You have to choose whether you want to structure your company for growth or to maintain its present size.   Growth means hiring more people, assuming more overhead in the form of administrative costs, and it means you stop doing the work and sales becomes your full-time occupation.  You'll also have to figure out if there's enough business in your area to support that growth.  

There are no pat answers.   I wish you the best of luck.

Sometimes those smaller jobs could be a loss like you mentioned (especially when they are further away and have a lot of drive time), but we have to take them.  They are one of the better ways to get new customers, so in the long run they are often worth it.

I spend a lot of my "free time" breaking down completed jobs, it's pretty easy to do with service work so I could see what is more profitable.

When I can get somebody to show up, and do the work in a timely fashion with decent workmanship, I'm happy as a pig in shit to pay them what they ask.

Some of the contractors in this area will charge a service fee to diagnose the problem....say $35.  

If you hire them to do the job, then they credit your account the $35 previously paid.  I am fine with that as I know their time is money.  I don't work for free and I don't expect them to either.

Mainly I'm trying to find out if price is their primary motivator. I usually follow up that statement and make sure they understand I am competitive but my price reflects the quality of my work. I was taught not to be afraid to lose the sale, some times when selling we get caught up in the chase of work and end up with jobs that really cost us money, maybe not in labor and materials but in time working the deal and head ache. It seems kind of stupid or simple but I try to run under the philosophy of go after the easy work and abandon the problem children early in search of more profitable work.

You may be doing this already, I know it wasn't natural for me at first but after I stopped chasing the hard to please customers I started closing a lot more because my time was being spent better.

Just my two cents, everyone has their own methods.

The problem with that type of billing is that usually the diagnosing of the problem is the hard part.  Most issues that people call to be repaired are rather small fixes, such as a loose connection, bad breaker or device, etc.  

I can't see how $35 is enough for any business in any part of the country to diagnose electrical problems.  

Unless they are charging you $35 to find the loose connection and $80 to tighten the screw  But then the customer will want to tighten the screw himself

Easy. Stop doing free estimates. Tell those shit-fucks to go find another cocksucker to work for free. I bet you will keep more business than you realize.

Also never extend credit.

These great "marketing ideas" you think you need are just shit you think you need. Cut the shit and charge a fair wage and you'll start making money.

If only it were that easy...

The truth is that I just ramped up my SEO in order to get more calls.  I am looking to increase business right now due to the Fall slow-down.  If I were to stop giving free estimates, it would seriously diminish my new business which is the opposite of what I am trying to achieve right now.

95% of the general public has never ran a business or even been in a supervisory position so their understanding of business is limited to gross profit on one transaction. full costs of doing business is a foreign concept to them.




 

This sums it up pretty well.  The funny thing is even people who should know about business still have things to say.  Doctors, lawyers, dentists, all well know in the trades as being sum of the worst customers since they often see us as little peons and when they break down the cost of the job and see how much we charge per hour they get mad thinking it's what we actually make.

Ehhh, what can ya do.