Why Some Contractors Charge for Estimates and How I lost $4100

On more than one occasion I have given hours of free labor for people who don’t become clients. This was something I was guilty of in my marketing business and it eventually burned me out.

As a builder I give free estimates. That statement seems so small but in reality it can become very expensive for the person giving the estimate if done wrong. I’ll give you an example

This is the sequence of events and their time and value of how I lost  $4100 by giving a free estimate and the client ended up deciding not to do the project.

1.        Emails and texts back and forth to establish the project specs and set a time to meet. 1 hr=$100

2.        Site visit for measuring and taking photos for the new floor plan and estimate. 3hr=$300

3.        Working to building floor plan. 4 hours=$400

4.        Client wants more floor plan options. 8hrs=$800

5.        Client wants to make changes to second floor plan. 4hrs=$400

6.        Floor plan is good. Now I build the design board. 6hrs=$600

7.        They love the style board. Now I can build the line estimate. 9hrs=$900

8.        The estimate is too high. Changes are made. Build new estimate 4hrs=$400

9.        Funding is only going to be this much. Edit estimate and floor plan again. 2hrs=$200

10.  Underbudget, client seems happy, ultimately decide not to do the project.

I’m fully aware that I allowed this sequence of events and have to fix my systems to prevent it from happening again. But I also saw an opportunity to give a perspective as to why some contractors charge for the estimates. Especially line itemized ones.

If you’re willing to pay you’re serious about the project. Which I thought this client was when she already had funding in place. But you live and your learn.