Tire Kickers and Price Shoppers -or- How I Learned To Hate Losing Bids

The Office Business
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So… I have a ballpark pricing guide on my website that estimates based on house size and service tiers.

Normally before running out on a residential bid I will refer folks to my website so they can check my prices and see at a glance all the services I offer. I have them call me back if they find an appealing service package so that I can run out to bid the price exactly, noting that in some cases the actual job is more or less than the ballpark quote from the website.

So recently I’ve had folks checking my prices online, calling me out to bid the job in person and THEN saying “No, that’s too expensive.”.

This creates two problems for me that are basically intrinsically linked: 1.)Paranoia that my prices ARE too high and the temptation to cut rates in the hopes of booking more work, and 2.)Wasted, unbillable time running unsuccessful bids.

Things being what they are, I have no way of knowing which bids are serious and which are run just to satisfy the curiosity of the tire kickers.

So I’m thinking a flat-rate pricing system with slightly lower prices could potentially solve my current issues. Lower rates could increase my residential closing % (currently about 50/50). And the flat-rate pricing would offset the lower rates by weeding out price shoppers from the get-go and eliminating unbillable hours from running bids in person.

Does anyone else do this? If so, what led you to decide that was the best solution for your business? If not, why not?

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I don’t plan on posting prices on my website - at least not for a while anyway.
I occasionally get people who call to ask how much to clean their windows; I explain that there are several variables in order to attain “clean windows” for them and that is why I offer FREE onsite estimates. I know, I have heard the arguments on this from others that say they don’t have the time to go out and do an onsite estimate, and wasted gas/time, etc. The truth is if I had so much business and were having to travel 25…30…miles to these jobs, then I may just change my tune?
So for me, the ones who insist on a price over the phone are usually the ones just curious. I ask how many windows, structure of house, and landscaping - from there I guess, and if they aren’t scared off then we plan to meet for an onsite according to my schedule. If they hem and haw on an over the phone price then I’m probably wasting my time and steer the conversation gently towards “maintenance services cost money”.

If I dropped my prices so anybody could budget it in, I would probably be working so hard for so little money that I might just burn out; if I price so high that I get few jobs I would probably get discouraged and find another line of business; hopefully I can price them right so that I am challenged from getting a “No thank you” from 123 Elm St, but a “Yes, when can you do it” from 128 Elm St.
When I am “hungry” (Summer slow down) I try to negotiate what they can afford to budget vs. what I am willing to eat.

I used to hate losing bids, now I view it as - “Not this one, but there is still time in the day for the next one”. Onward and upward.

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@Samuel

When I was doing Resi, I’d be kindly persistent in insisting on doing the estimate in person, when the decision maker is home. The one thing I’d do differently is have them walk with me around the outside of the house. This time is crucial to building trust, rapport, comfort.

“Can you give me a ballpark over the phone?”

“You know, I’ve found the best way to do it is to come out and see the job in person, since every house is different and poses different challenges.”

“But, I mean, do you charge by the window or how do you do it?”

" I charge by the window."

“So, what would it be for 30 double hung windows?”

“Well, I could give you price but, really, I like to see the job in person to get a true sense and feel for it.” [Knowing that there a myriad of factors the customer won’t be mindful of.]

“OK.”

“So what would be a good time to come out, when you will be home?”

Granted, I already had my prices for each window type but I wanted the customer to see me, hear my voice, look into my eyes (too weird?). No but eye contact is huge for establishing trust.

I want them to see that what they are getting with me is ME. Someone who truly cared about them as a person and would give free advice.
(“Do you mind if I just take a look at a window from the inside?”
“Sure, no problem.”
[I take off shoes]

“Ok, let’s see, what do we have here?” [Pull blinds up, inspect window. Unlock, open, inspect condition, level of dirtiness.] “Ok, you see this? These are stink bug nests in your tracks. I’ll make sure to clean all that out. And you see this? Those are hard water stains. It’s not dirt so it won’t come out with just regular cleaning. It’s a whole different process…”

“Did you know your windows tilt in?” (Possibly may lose the job but didn’t matter.)

“No. The windows don’t tilt in.”

“Oh, no, take a look here. You just do this and this…”

“Oh wow, look at that!. I never knew that! So, will that make it easier for you to clean?”

“When is the last time they were cleaned…?”
"Oh, I love that painting…
"How long have you lived in…?
“When do you want to schedule…?”
“Hey poochie…oh you’re a good boy…look at you,very handsome…”

It’s just a time to build that relationship and the sale will follow, imo. Somewhere I read that if you’re losing 20% of your bids, that’s a good indicator that your prices are fair and competitive. But even despite that, make them your friend and people will do for a friend.

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In my experience, the ‘rightness’ of my pricing should be judged by the jobs I get, not the by the ones I don’t. What I mean is, what are people’s reactions when you’re done with the job and it’s time for them to pay? Are they thrilled with the service and act as though they got more than what they paid for? Or do they have a slight sense of disappointment, like, “Is that all I get for that high price?”

The reason you’re only closing 50% of your bids probably has nothing to do with your pricing, but the fact that you’re somehow attracting the wrong types of customers, or failing to convince the right customers that you’re the guy for them.

Lowering your prices, IMHO, will only attract more tire kickers. Try raising your posted pricing by 30% across the board, just for a month.

My minimum for any new residential window cleaning is currently $225 (with limited exceptions where I see fit). Gutter cleaning is $125 for close-by jobs, and power washing starts at $250 for rinky-dink homes.

Getting away from the sub-$150, lower-middle income “impulse purchase” price range may also help.

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why is your price higher or lower than the website? my quoteflare is set up to price most jobs accurately. i use it on the phone if they have not filled it out themselves.
i only went on one on site estimate this year.
do you verify the size of the house on the phone and any issues which vary the price for their home?
i think your website looks very nice but the price page is a bit confusing i find,
are those pictures of actual house styles from your area? they look like internet pics to me?

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Last year I was really frustrated with with driving all over for quotes. I have a large coverage area here in the Denver metro area. A true time waster. At the start of the season I added a an online bidding tool to my website (quoteflare). This helps to rid the tire kickers and time suckers. We also use it for phone bids. We were able to increase our prices and do more work!

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I don’t post prices and I don’t give estimates over the phone. Like stated above, I give estimates in person. There are several variables that figure into a bid besides window count.

Sometimes, when talking to a customer on the phone, they will be…um…err…other than honest about their situation, or they forget to tell you that in order to clean those 25 ground floor windows, you have to haul an 8’ ladder through the holly and rose bushes to reach them

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I gues your liking the platform now :grin:

I agree with everything your saying.
Except when Someone tells me they have a small house 15-18 windows.
I’m not driving out there to look at it. Unless it’s 5-15 minutes out of my way. So what I do is find out what type of windows
Send them an estimate an it’s a ball park I write. 150.00-225.00. Based on what your telling me
I tell them if it’s everything your telling me that’s my price will be no more no less
This year I had 2 customers that where way off one declined after I told them the new price , but called back to schedule 2 weeks later. The other accepted
Each case the price was double.

I get what your saying after talking, An you realize they just not into explaining, them I have 3 choices : either google , an get s look , ask them to take a couple of pics , or just say the best thing is to come an look

I just don’t like wasting my time with s small house. Especially during busy season.
An especially when there price shopping