8 Tips for Presenting Cost Estimates to Your Clients

Entrepreneurial life is not easy. Depending on the season, it can be difficult to get renovation contracts, even if you meet with a lot of potential clients. You may have the necessary experience and skills, but people are simply not calling back.

You should know that the price you are offering is largely responsible as to whether or not you sign contracts. Some customers will always favour the lowest bidder, but others are primarily looking for good value for money. This is where you can change things!

Signing a renovation contract implies knowing how to stand out amongst the other bidders, but also knowing how to present prices so as not to repel the client. Each customer wants good value for their money and it is up to you to convince them that the asking price is consistent with the work to be done.

To help you get more contracts, here are 8 tips to start using when you present a price to your customers.

How to Present a Cost Estimate to Clients and Win Over More Contracts

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1. Clearly detailing your proposal

If there is one thing to remember as a renovation contractor, it’s the fact that most of your clients are not experts in the field. Therefore, when presenting a quote, forget the renovation jargon and complex sentences. This document is intended for the customer, so it is essential that they understand all the points covered in the quote.

In addition to the description of the work, the bid must include the schedule (start and end date of the project), the conditions of the contract, the terms of payment and the total price requested. Everything should be indicated in black and white, in a completely clear and transparent way.

2. Explaining the difficulties associated with the renovation project

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The customer does not necessarily imagine all the constraints related to their renovation project. It is your responsibility to inform them of all the difficulties that you may encounter when carrying out the work. A knowledgeable customer, who understands this aspect when reading the quote, will be more inclined to accept your offer.

Take advantage of your discussions with the client to explain the progress of the work step by step. In particular, it may be useful to tell them about the techniques and methods you will be using, that may justify the price.

3. Properly valueing your renovation quote

A good contractor will have every interest in being a good salesperson to grow their renovation business. The benefits of your proposal must be emphasized, both in the quote and in verbal and written communications that you have exchanged with the client. The valuation of the quote relates to the quality of the work, the work deadlines as well as the guarantees that you offer, among other things. By putting these elements forward, you will be more likely to succeed in obtaining the contract.

4. Standing out from the other contractors

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When you are presenting quotes, always keep in mind that some of your competitors will probably offer lower prices than you. Therefore, it is essential to learn to stand out by demonstrating your strengths.

Offering a minimal cost often involves lower quality work. Therefore, when the time comes to present your price, try to emphasize the aspects that set you apart from competing entrepreneurs. You will then be able to highlight your experience, the similar renovation projects that you have completed in the past, the satisfaction of your former customers and your after-sales service.

5. Integrating discounts with the price that you present to the customer

As a contractor, you will be responsible for purchasing the materials for your renovation projects. If you specialize in kitchen or bathroom remodelling and deal with a particular supplier, it is likely that you will benefit from attractive discounts to thank you for your loyalty.

Although not all contractors do it, it can be beneficial to share these rebates with your customers by reducing certain items on their bill. This is a commercial gesture that must be clearly communicated to the customer to get their attention. After all, everyone loves gifts, especially when they reduce the cost of their renovation project!

6. Promoting your loyalty policy

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Even if they are not talking about at the moment, it is likely that your client will be planning more renovations in the near future. A good contractor will take the lead in explaining their loyalty policy. It will be much easier for you to get the attention of customers who are just starting their renovation projects and will be needing to hire contractors at other moments in the near future.

7. Having a different approach with former clients

If you send a quote to a former client who has been satisfied with your work, you have almost every chance of winning the contract. But you still have to make sure they accept the price you are asking them to pay.

The approach you should adopt towards old customers is somewhat different. A former customer will have more trust in you, and you will have nothing to prove from this point of view. However, they obviously expect certain advantages if they use your services again. This is where you can fully apply your loyalty policy. Be sure to include this aspect in the quote before presenting your price.

8. Explaining payment terms

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Some customers may be turned off by the prices offered by the renovation contractor. It would be very unfortunate to lose a contract simply because customers decide to give up on the project or to take the lowest bidder. After all, your price seems too high. In this case, it is essential to present various methods of payment, to reassure the customer and guarantee that you will sign the contract. Easier terms of payment may convince them not to settle with the lower bid, but instead to go with you, as you show flexibility and promise high-quality work.