How to Calculate a Renovation Quote
Last modified: 2019/08/08 | Approximate reading time 4 mins
Feeling intimidated at the thought of writing a renovation quote for your customers? RenoQuotes.com has a few tips on how to prepare an estimate and how to present it to your clients.
Before a client hires you for a renovation project, you need to provide them with a detailed quote which presents the total value of the work and describes the services that will be included within that sum. Therefore, in order to be a successful contractor, you have to present renovation quotes that are precise and easy to understand for the client.
Elements that should be included in your quotation
When filling out your quote, put yourself in the customer's shoes. They want to be able to look at the quote and understand what is written on it. Therefore, using a standardized form will make you look more professional. Make an effort to write well and use vocabulary that is well-adjusted to this type of setting (i.e. don't be overly friendly and try to avoid spelling mistakes).
During the course of the meeting, try to earn your client's trust by letting them know that you understand their needs and will be able to fulfil them. By adding plenty of detail to your quote, you will seem more trustworthy.
Beware: once you submit a quote, it should be a final version. Last-minute modifications are rarely possible. Here are some of the components that should be included on your estimate form:
- The total price of the renovation project;
- A breakdown of all the elements that explain the price;
- A timetable (beginning, end of the project, etc.);
- Terms and conditions;
- Terms of payment (spread out, at the end of the contract; with or without a deposit, etc.)
- A place where both parties can sign.
If you click on this link, you will find a template of a renovation contract, which has been made by the Régie du bâtiment du Québec. You can use it for your quotes if you wish to do so!
Calculating the right price to earn more contracts
When asking for a quote, no matter their budget, most clients are looking to hire a person that will give them the best price/quality ratio. Establishing a quote for your potential client can be complicated given that you have no comparative analysis and have no idea of what your competitors can offer. Knowing that, when preparing your quote, you will have to pay special attention to your price.
Since you're trying to sign a contract, it may seem tempting to quote a lower price. However, you should never sacrifice the quality of the work, just for the sake of signing a contract.
If you're making less money, chances are you'll try to finish the job faster, skipping out on a few optional steps that could've added to the quality of the project. If your client isn't happy with the final result, this will end up hurting your company much more than having not signed that contract in the first place.
Therefore, unless your clients have a very tight budget, you're better off charging a fair price which properly reflects the amount of work to be done.
One of the key ways to come across as convincing is to demonstrate the best reasons that a client should do business with you. Find a way to showcase your strengths (portfolio, customer reviews, website).
If you are able to show that you offer good quality work that is worth the price you are charging, people are more likely to accept a higher price.
How to calculate prices for your quotes
If you are not very experienced as a contractor, this is a step that can be quite intimidating, especially since you do not know how many others will have presented a bid for the project. Calculations depend on a multitude of factors, from materials to dimensions, duration, complexity of work as well as labour costs.
Fortunately, there are several online tools that can help you get a certain idea of market prices. You can also look at our cost calculators that have been developed with the help of contractors. Click here to check it out.
The right approach to convince a client to do business with you
Unfortunately, contractors often start with a disadvantage when they first meet customers. The reputation of renovation and construction contractors has taken a hit over the years, and this negative impression can have an impact on everyone in the field. That's why it's so important to make a good impression during the first meeting.
To win the trust of people, you have to be friendly, attentive and you have to know how to demonstrate your abilities. Regarding the document itself, there's something to be said about writing a detailed quote and taking the time to read through its content with the customer.
This short moment will have a major impact on the amount of trust that the client will have in you, and you will be more likely to sign the contract with them!
Here's a few articles that can be helpful for contractors looking to expand their company:
- How to use social networks for your renovation company
- Top marketing strategies to get clients for your renovation company
Get new clients for your home renovation company in Canada
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