I just read a long thread here about pricing. The subject was really about how to count windows, but I noticed a few posts that mentioned the challenges of dealing with the homeowner about the number of windows. This got me thinking about what the homeowner needs to know about pricing. I used to describe in detail my pricing and it frequently led to negotiation. Then one day the phone rang and on the other end was potential customer who asked the question that I had heard a thousand times before: “So, how do you charge?”…
Until that moment, I always explained window prices. Double hung is this much, patio doors are this much, if there is paint it would cost more, etc.
But at that moment, I was pressed for time and not in a mood for discussion, so I just said that there were several variables that are looked at when a quote is prepared and that I would not be able venture a guess until I saw the job.
The woman on the other end of the phone totally understood.
So I took it one step further and began using that line of explanation even when I would go to a property and give a quote. It has worked ever since. Well, at least 95% of the time. The other 5% of customers who really push for a breakdown get it. Half of those just didn’t like the price in the first place and did not intend to do business.
I think what I am trying to say is that if you are professional and confident in your pricing method most people are comfortable with the figure and do not feel a need to understand how you came up with it.
Looking at other services, say carpentry, I have noticed there is NEVER a breakdown of cost. Those guys don’t explain the cost of delivering and assembling scaffolding, the cost per wall stud or piece of sheetrock, etc…and with new construction a widely accepted pricing method is per square foot of floor space, with the term “standard construction” used to describe a baseline cost, which goes higher depending on how many gold plated faucets one wants, or what part of the globe the floor tile comes from.
Now, of course, if you quote a price of $500.00 for a window job and then a company called Servicesomething quotes half that over the phone, then you’ve got some explaining to do, even if it should be the other way around.
I agree wholeheartedly with your approach. I too have found that the more detailed I get, the more questions arise. I don’t even mention the number of windows now in an estimate, just a price and what it includes.
I am thinking about developing a bid specification sheet. In other words, I’ve spent a good deal of time checking things out and working up an estimate, only to find out that the homeowner has contacted as many window cleaners as Google will provide them, all to get quotes on a $300-$400 job. I believe my level of service (cleaning) is top-notch and close to detailing, but others may be charging a basic cleaning, so it’s not really apples to apples. Anybody do this? Develop and provide for the customer a short of checklist or menu of items that they want. Like screen cleaning versus screen sealing. Wiping off the window sill versus washing and cleaning the entire outside window frame. Cleaning just the glass on the front entryway or doing a soft wash on the entire front door? That way they are making a true comparison. Thoughts?
The dreaded “how do you charge” question.
We’ve all heard it. Some deal with it differently than others. Me? I’m right on track with you.
I never tell my pricing over the phone, or even in person. Here is why:
What if the potential customer is another company wanting your pricing? Now you have given them you personal pricing info.
As you mentioned it does nothing but raise more questions for which you have to answer.
You run your business, not your clients (as much as they would love to). 
Many threads here have discussed estimates through their website or over the phone to save time. With the way you are discussing that would be difficult. So I assume you are planning to do every estimate in person? What happens as you grow and it takes half a day to do several estimates.
I ask the client how many windows so I can quote over the phone and tell them the quote is subject to adjustment if when I get there, the count is different or there is more work needed. This works for me.
Hi Phil,
Good points. I have ballparked jobs over the phone when getting out to give a quote will be too time consuming (mostly due to distance). Rather than do a window count though, I do a bedroom count. For example, I explain that a 3 bedroom home averages in the such and such $ range and that different factors can either raise or lower that figure. If they are comfortable with the price I schedule the job with the understanding that on the day I arrive I will give a precise quote. So far I have never had anyone say no when I show up and add to the price. Very similar to your approach.
Now get this.
I don’t have a website! I know I should put one up, but I have always had plenty of work…except for winter that is. When I do put one together I will use some type of instant estimate thing on it.
We do most estimates in person. We quote a price for the job, not by the window. The customer does not get a copy of our bid sheet, only our estimate form.
We don’t quote by the window because if two houses have 20 windows, one could take 2 hours and the other could take 6. One could be first floor, but have to be laddered, or have 6 foot rose or holly bushes 6 inches from the house. People tend to forget about such things when they are negotiating a price.
It also seems that no matter how many times you give them an estimate over the phone, and tell them it is only an estimate, they demand you honor the price you gave them when you show up and find things were not quite exactly what you discussed on the phone…
I visit with each and every new customer to give my quote. I do this so that they or I will not be surprised when I show up to clean windows and they counted 15 windows and expect an $150 min cleaning bill, but it turned out that 10 of those windows was 2 and 3 windows installed looking like one to the untrained customer, which almost doubles their bill. Also this allows me to quote all my services to the customer, most are open to this and appreciates the time I spend showing them their problems and their solutions.
If I miss something I eat the mistake. I don’t give details unless I need to build value with the customer, normally it isn’t on the individual price per window, but how many windows they have. If its a high quote, I will double check my totals. but it almost always comes back to telling the customer that they have alot to clean, or the windows they have takes extra time thus costs more than the average window.
Build Value and don 't try to defend your cost per window.
Giving them a price over the phone and telling them how you price are 2 different things… Correct me if I am wrong.
You can say “I can do it for X amount of dollars” and they still will never know how you came up with that number.
True. I stand corrected
No, you’re right. Giving them a price over the phone is only possible of you ask them for SOME information, which they are then right to assume is what you use to construct their price. Window count, square footage, whatever.
Many here, including myself, have found the precise opposite to be true. Maybe you need more gracious, relaxed, understanding customers? Or perhaps just to communicate the difference between an “estimate” and a “quote” better/differently?
Very true Michael, however they will never truly know how you price.
I generally don’t price over the phone (I know a lot of you are thinking “WHAT?!?!” lol), but occasionally I will have a potential client asking what it may be.
Gutters, I refuse to bid until I see the job.
Windows, we will go over a few things like how many windows, what kind, what size, how many stories and which windows are where, etc. Most of the time I will tell them it will be between X amount and X amount, MORE THAN LIKELY. I bring home the fact that there is a good possibility that things could change, but given the information provided this is where your bid will likely land.
I know we are getting back to the “should we bid over the phone/responsibid or in person” discussion, but this seems to work well for me.
I do find, however, that a lot of people consider a single story window a “walk up”, even though you do need a step ladder t access it. For those scenarios I charge a little more. After all, I still have to drag a ladder around…
What’s the big secret? Why are you afraid to tell them how you price? I prefer to be up front and honest. Trust goes to credibility and integrity.
[COLOR=#333333]if two houses have 20 windows, one could take 2 hours and the other could take 6. One could be first floor, but have to be laddered, or have 6 foot rose or holly bushes 6 inches from the house. People tend to forget about such things when they are negotiating a price.[/COLOR]
[COLOR=#333333]It also seems that no matter how many times you give them an estimate over the phone, and tell them it is only an estimate, they demand you honor the price you gave them when you show up and find things were not quite exactly what you discussed on the phone…[/COLOR]
Some good points, Bumblebee. 20 windows at one house could take a lot longer than 20 windows at another house. I found that especially true in the Northwest where certain houses had a lot of crazy angles and/or were built on really steep hills. Not only does height play a role, but also spacing. 20 sunroom windows that are right next to each other can be cleaned a lot quicker than 20 windows spaced further apart.
I used to give phone estimates based on square footage. That seemed accurate to a point. Worked well for medium sized houses. However, if they have an 8,000 sq. ft. house, I will definitely need to go out and take a look at it before throwing out any kind of estimate.
When I talk to a potential client on the phone I ask them sq/ft of the house to gauge how big of the job this might be. If they have a huge home I will ask them if they are in rush to have their windows cleaned because I would like to meet with them in person and give them a price.
If they want to have their windows cleaned asap I will give them an estimate over the phone and explain it is only an estimate based on the information they provided.
I really don’t care if competitors call and want to see what I charge. I’d rather them charge $15-20 less than I do, than they lowball and charge 50% less than me.
As for a customer asking how I came up with price, I tell them its based on all the info they gave me when asking them questions.
Sent from my portable handheld device using interwebz.
For me there is no secret… really. The potential customer asks for an estimate to have their windows cleaned, I show up, look at glass, then give them the estimate. What else is there to question? I did what they requested of me. I don’t deal with partial cleans so for me the price is the price for all. And lets be honest here. When its all said and done, they won’t remember what you charged per window when they have calculator in hand dividing total cost by hours spent(just wait until you need to justify that when it’s not in their favor).
Lots of guys in this industry have found that the more transparent you are with pricing, the higher your closing rate becomes, and the less time you waste with dead-end “tire-kickers”.
[B]Never hide from price.[/B]
If you’re afraid to reveal your pricing, it can easily be perceived as a shady high-pressure tactic. Or suggest that you are inexperienced.
As for your competition knowing your prices, you shouldn’t be worried about that, either. Deliver relevant, unique value, and you won’t ever have to worry about price matching again.
Do NOT buy into the ridiculous and completely discredited “Labor Theory of Value.” If you’re of relatively sound mind and want to buy my old worn-out baseball cap for $150, then by golly, that’s the price! In determining prices in a free market, the only OBJECTIVE fact is the all goods and services are valued SUBJECTIVELY.
