Is an "estimate" really an estimate?

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JJM

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When you give a potential customer an "estimate" do you ever adjust if the work that was agreed upon was not altered? In other words, is "an estimate" really an estimate and acceptable to change?
 
An estimate is the same as a quote or a proposal for work to be completed. The fine print should explain that unexpected things such as concrete or large amounts of metal in a tree could be reason for an up charge for chain replacement and extra time on site. It does happen.
Add on's are charged accordingly. In tree work there are times when you kill a job and make out big time, other times you get killed. Win some, lose some. A good estimator will price the job properly and allot the proper amount of time to the job to get it done safely.
If you go back to a customer and tell them the job just took a lot longer than you figured and ask for more money you will be holding your balls in your hand.
 
We call them estimates but legally they are quotes and if the customer signs them they become a contract.

The only time I've gone back to a customer for more money was when the quote called for 6 branches to be removed in a safety prune and the climber actually took about 20.
 
When you give a potential customer an "estimate" do you ever adjust if the work that was agreed upon was not altered? In other words, is "an estimate" really an estimate and acceptable to change?
Maybe I'm not understanding the question... If the work that was agreed upon was NOT altered, why would you need to adjust?
 
I agree. I don't give out estimates except over the phone when I get the question "how much does it cost to remove a tree"? I usually say $300 to $5,000. My forms say quotation right at the top. If I screw myself on money then hopefully I learn from it and move on.
 
I do only stumps, and I will give an estimate via picture text message as long as I can get a good idea of the job. I tell the person to place something on the stump for scale. Then I discuss the details, like location in yard, hills, where the chips go ect. If it looks complicated I will drive out and take a look, but if it is cut and dry I estimate via text.

Then I give an estimate on the high side. I tell the client that it will not be any more than that. I explain that there could be rock in the stump, ect. If the job goes smooth I usually charge lower which always makes the customer happy. As long as I can make 100-125 an hr I am happy. If I quoted a job on the high side of $350 but was out of there in 2 hours I charge less. I am not trying to take anyones head off.

I have underbid a few times, but the money saved in not having to drive to estimate makes it all even out.

Basically I will never charge more. I'll eat the job in order to maintain a solid reputation.
 
If you can't be comfortable with your quote due to the potential for unforseen problems (storm work is a good example of where this may occur), then bidding the job on a time and material basis is the best for both parties. It can be a harder sell to the customer, but can be offset with the "there is a big unknown here and the only way for me to protect myself is to give you an excessively high quote" line.
 
Yes, quite often. The result is they call me back soon after for additional work elsewhere on the property. Lost a few bucks initially but made it all back and more later.
i agree! you can shear a sheep many times in it's life but you can't skin it but once!
 
I have charged less. Rule of thumb I have used is split the difference between quoted price and hourly rate. Don't cut yourself too short because you will under bid the next one and not be able to charge more. Or am I the only one to underbid jobs?
 
I have charged less. Rule of thumb I have used is split the difference between quoted price and hourly rate. Don't cut yourself too short because you will under bid the next one and not be able to charge more. Or am I the only one to underbid jobs?

I have had to make a rule not to quote a price while standing on the spot with a homeowner. Have to take it all in, take notes, then email or deliver a proposal the next day. Or while working at a job, the neighbor comes over and I just throw a figure out. Those don't always turn out badly, but have the potential.
 
anyone ever lower price after job was completed and did not take as much time as "estimated" ?
I have done it maybe four times in eight years. I once bid a job, on a horse ranch, for $1,200. The owner drove me around to the stumps and I was writing down the price of each stump, by guessing the size, from the seat of her Bobcat. They were all 20 to 30 inches diameter. There were about thirty stumps but fairly close to each other. I guessed it would take me a bit over two hours. I gave her the price and she wanted me to start right then since I had my stump grinder with me. I mentioned that there were still about five trees that still needed to be cut. She told me she would have her hired hands start cutting them and I told her that they could not keep up with me. I showed up on her ranch the next morning at day break. The thing I couldn't tell, as we drove by them on her Bobcat, was that half of them were rotted and they blasted out of the ground like paper machete. I was finished in 45 minutes. When she was writing the check, I told her to make it out for $600 instead of $1,200. She was elated over that. Since then, she has hired me for two more lucrative jobs and has gotten me work for her friends. If those stumps had been solid, I would not have come off the price.
 
Once I have given a price, I NEVER go up to a customer and tell them I didn't bid the job right. I have underbid plenty of jobs but that is never my customers fault. I have never told a customer it took longer than I thought. I am pretty good at estimating jobs. I keep my prices posted online, showing how I measure, and my customers have a very good idea how much the job will cost before I arrive. I always measure in my customers advantage. I get quite a few tips, during the year, and a lot of referrals from old customers. Treating your customers right will keep you in business.
 
I have done it maybe four times in eight years. I once bid a job, on a horse ranch, for $1,200. The owner drove me around to the stumps and I was writing down the price of each stump, by guessing the size, from the seat of her Bobcat. They were all 20 to 30 inches diameter. There were about thirty stumps but fairly close to each other. I guessed it would take me a bit over two hours. I gave her the price and she wanted me to start right then since I had my stump grinder with me. I mentioned that there were still about five trees that still needed to be cut. She told me she would have her hired hands start cutting them and I told her that they could not keep up with me. I showed up on her ranch the next morning at day break. The thing I couldn't tell, as we drove by them on her Bobcat, was that half of them were rotted and they blasted out of the ground like paper machete. I was finished in 45 minutes. When she was writing the check, I told her to make it out for $600 instead of $1,200. She was elated over that. Since then, she has hired me for two more lucrative jobs and has gotten me work for her friends. If those stumps had been solid, I would not have come off the price.


What kind of machine do you have to do 30 stumps in 45 minutes? Just curious.
 
What kind of machine do you have to do 30 stumps in 45 minutes? Just curious.
The machine I have is a Carlton SP7015 with 66 HP. As I mentioned, most of the stumps were rotted and they were all very close to each other. The wheeled 7015 is very quick to go from stump to stump. Also, I left the holes open because they were going to cover them with a front loader. I did take the stumps down about ten inches. It was probably the easiest job I have done. When the landowner was driving me out to see them, I knew some were rotted but I didn't realize just how rotted they were. For their size, had they been fresh cut or solid, I still would have had them done in about a two hour time frame. Anyway, that is why I cut her price by half. It is much more common for me to underbid a job than to overbid, like I did on this one.
 
Yeah! At what point did an " free estimate" become a legally binding contract!? My God! What happened? What IS happening? What's gonna happen now?

Well at any rate: I sometimes write 1000.00 to 2000.00 just to **** with their heads.
 
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