Estimating + Quoting Process

Goal

Develop accurate, profitable, customer-friendly quotes for service work. The estimate is the bridge between "I have a problem" + "let me hire you to fix it." Done well, the process closes 50 - 80 % of leads. Done poorly, customers price-shop + you lose work to less-capable competitors.

Prerequisites

• Pricing knowledge for your trade (parts cost + labor rate)
• Margin targets (typically 50 - 65 % gross margin on parts; labor at hourly rate or flat-rate book)
• Quote template / software (ServiceTitan, Housecall Pro, Jobber, OR custom spreadsheet)
• Camera / phone for photo documentation
• 15 - 30 minutes per quote depending on scope

Steps

1. In-person assessment first. Photo-based or call-in quotes are inaccurate + signal you don't take the work seriously.
2. Listen to the customer fully before assessing:

• "Tell me what you're noticing"
• Document their language; mirror it back in your quote
• Ask about prior service attempts

1. Diagnose the actual problem. Not symptom-fixing - root-cause:

• The customer says "the AC isn't cooling"
• You diagnose: capacitor failure + suggest checking the contactor for related issues

1. Show the customer the finding. Walk them to the affected area:

• Point to the failed component
• Explain in plain language what failed
• Photo for the customer file

1. Present options at multiple price points (when applicable):

• Standard repair: fix the immediate issue (lowest cost, $)
• Standard + related improvements: fix this + the marginal items found ($$)
• Full system upgrade: replace the whole component / system ($$$)

1. Quote the price RANGE for each option in the customer's hearing:
2. Don't pressure. Honest options + customer's choice. Pressure-selling generates short-term yes + long-term reviews + churn.
3. Document the quote in writing (paper OR email) with:

• What's included
• What's NOT included (parts costs, additional issues you might find)
• Estimated time
• Warranty terms

1. Set realistic timeline. "I can do this today" if true; "next week" if it requires parts you don't carry.
2. Confirm in writing before starting. A verbal yes converts to a written acceptance via text or signed quote - protection for both parties.

Verification

• Quote in writing
• Customer signs OR confirms via text / email
• Materials + labor cost accounted for
• Margin meets your shop's targets
• Customer expectations clearly set

Common pitfalls

• Quoting too low: customer thinks you're unprofessional + you lose margin
• Quoting too high: customer goes elsewhere; you lose the job
• Not quoting in writing: customer disputes the cost later
• Surprises during work: scope creep killed your margin; quote should account for this
• Forgetting parts in your estimate: customer rejects when you "discover" the additional cost
• Pressure-selling: customers detest this + you lose the long-term relationship

References

• Service Roundtable pricing benchmarking
• Industry-specific flat-rate guides
• Manuall internal: Job-Completion Customer Walk-Through, Customer Communication Standards