Cleaning
Foreclosures? - Why You Should NOT Give Detailed Job Estimates
By Yuwanda Black
If you have a business cleaning foreclosures, or are thinking about
starting one, there is plenty to learn. This is especially true when it
comes to pricing, bidding on and giving out estimates for jobs. Here, we
will tackle the estimate - as in, two reasons you should not give a
detailed estimate.
Foreclosure Cleaning Business Owners: 2 Reasons Not to Give Broken
Out Estimates
1. Being Used as an Estimate Source: One reason not to give
detailed estimates is that many times, you are just being used to as an
"estimate source."
To explain, most of your foreclosure clean out jobs are going to come
from realtors and/or the REO departments of banks. This is important to
know because many of them have to submit two or three estimates to their
superiors before they can outsource a job (ie, hire a foreclosure cleaning
company).
And, this is why giving out detailed estimates - in the beginning - can
be a waste of time for you. Putting together a detailed estimate takes
time. So in the beginning, just give whoever is asking for the estimate a
job rate - on your company letterhead of course, so it's official.
If they ask for a more detailed estimate, tell them that you can
provide that if you're hired for the job. Stress that the job estimate
won't change, but that it is your company policy to only give out detailed
estimates once a contract has been signed.
The next point will clarify even further why this is important.
Being Used to Price Shop: Many times when you provide a detailed
estimated, it is used to subcontract out certain parts of a job - to other
foreclosure cleaning companies.
For example, let's say you bid on a job that came out to $5,000. You
included $1,200 for the painting; $600 to hang sheet rock; $2,000 for the
trash out; and $1,200 for exterior painting.
Now, your profit is built into each of these. So a realtor, banker,
investor - whoever asked for the estimate - could ostensibly take this and
start to price shop. Take the painting. What if the person requesting the
estimate called around and got someone to do the interior and the exterior
painting for $1,500? That's $900 less than what you charged (a total of
$2,400 for exterior and interior).
With your estimate in hand, they can use you as a bargaining chip, ie,
"We already have a company that's going to do it for $2,400? Can you beat
that?"
And, this is why if you own a business
cleaning foreclosures, you should only quote job rates - until a
contract is signed. Then, and only then, should you give a more detailed
estimate.
May be reprinted with the following, in full: To learn everything you
need on how to start a
foreclosure cleaning business, log on to
Start-a-Foreclosure-Cleanup-Business for 200 pages of first-hand
information. It was written by the owner of a leading foreclosure cleanup
company in Atlanta, GA. View the news coverage of the company here as
well.
Article Source:
http://EzineArticles.com/?expert=Yuwanda_Black
http://EzineArticles.com/?Cleaning-Foreclosures?---Why-You-Should-NOT-Give-Detailed-Job-Estimates&id=1953100
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