I recently quoted a big 3500 sq ft home in Granite Bay, an upscale part of one of the
counties we serve. He told me he wanted two new systems with a Trane Clean Effects filtration
system, plus ductwork, and a way to get one guest room air when it would be occasionally
occupied. The project was going to be a big one: two
systems, a 5-ton and a 3-ton with ductwork and possibly insulation blown-in. Of course,
I wanted the job, but if I don't get it, I don't get it. I want to talk about how I handled
this job estimate and what I could have done better. So as you listen to the story, let
me know your thoughts. So, when I went out to this call, I noticed
it was in a prominent area of the county where homes are enormous and expensive. This particular
house had an upstairs and downstairs, and as I said before, it had about 3500 sq ft
of conditioned space with very little insulation. When I went in, we talked about his project,
and he seemed pretty set on variable speed systems, which for those of you who might
not know is the premium technology in our field right now.
The customer did tell me that he liked us when we came out to another property of his
and quoted him on a system there but didn't ultimately go with us because our price was
too high. He was able to find another company that gave a him a mid-tier system for less
money that would suit his rental just fine. He also let me know he was getting "quotes
from other companies too." Unphased, I did my usual routine of measuring
the house, checking insulation levels, took note of the windows in the house, checked
the ductwork, discussed another way of running the ductwork to one room that was on two different
zones, checked with the customer for areas of the house that might have hot or cold spots,
checked the return sizing, and other possible ways of setting up his HVAC in the attic so
the ductwork could be run closer to the attic floor and be buried with the potential new
insulation for more energy savings. I went out to my truck and wrote up the quote.
I gave him some different options, but the whole time I was there, he was just centered
on a variable speed system and possibly the 2-stage system. So those are the numbers I
gave him. I also quoted him on a one-to-one Mitsubishi wall mount or ceiling mount in
the guest room. All in all, with two variable speed systems, ductwork, and insulation, the
quote comes up to around $40k, give or take. When I came back in, I went through our sales
book and system options. I showed him our prices for his project. He let me know our
price was already higher than another company's, and did I want to see their quote for the
job. I respectfully said no, I didn't need to know the pricing because I was secure in
my numbers for the job, and if another company can offer you the same things we were offering
for the job, I understand if he goes their way.
On a side note, I feel like with the extras we throw in on our jobs as well as the warranties
and preventive maintenance we include, not too many companies are able to match our price
apples to apples. We finished up our conversation at the table,
and I told him I was willing to work with him on the price a little, but I really felt
like the difference in workmanship would show once that job was done. We parted ways, and
honestly, I didn't feel too good about even being contacted by him again, because he seemed
to be all about price and nothing else. A couple of days later, he contacted me via
email asking questions like if he can mix systems furnaces with air conditioners, how
much to change one of the systems to a 2-stage, and a couple of other basic questions. I promptly
answered his questions that night after work and was even able to get his new price down
to below 40k for the whole job. It's a slow time of the year, and I was willing to cut
down on profits to win the job and keep my guys working.
The next day he asks me if I can just give him a quote for the 5-ton system, and he would
do the 3-ton later. I was able to get him a smashing deal that I would take a meager
but still reasonable profit for us to make it worth doing the job.
That was March 19th. On the 23rd, I just dropped him an email asking him how the bidding process
was going. On the 30th he writes me back (and mind you everyone's been going through the
whole coronavirus lockdown, so it's a crazy time for anyone to be thinking about replacing
their system) but he says: "As you know, we had several companies provide
estimates for the HVAC. Your estimate was very similar in equipment and price to two
others. The fourth estimate was several thousand dollars cheaper than the other three. I have
gone back and forth with the estimate and the company to make sure I am not missing
anything because it was that much cheaper. I am still waiting to make a decision because
of this pandemic, but I am likely to go with the lower bid. I hope you understand. I appreciate
you taking the time to discuss with me all the options. I will certainly keep you in
mind for the other HVAC unit and the attic insulation."
When I get news like this, I never want to respond with my initial feelings, so I usually
make myself sleep on it before replying. The next day I wrote back:
"Hi Mr. Jones, I can certainly understand why people want to go with the cheapest bid
all the time. It's like going on Amazon because you know the price is going to be lower than
retail stores. But in the case of HVAC and what is involved in your job, I would seriously
consider using the middle price as long as it's a reputable company you're comfortable
with. I know the numbers on this job, especially if you're using Trane or American Standard.
Someone who is several thousand dollars less than us other companies aren't netting anything.
A company like that, I would be leary about. Consider the service after the install. Warranties,
workmanship, if the company is licensed and insured. Any of us three other companies that
are close in price are there because we want to be around for our customers next year when
you need us. From my experience in the industry, the companies low balling like that are here
today and gone tomorrow. I really don't mind who you go with. Still,
for the sake of us other three companies who are at typical market value for your project
because of our reputation for quality workmanship, I wish you would reconsider."
The next day he clicked "Decline" on our electronic estimate on Housecall Pro; Which I really
like when people do that because it makes it easier to know which jobs we're still in
the running for and which ones not, but this one came across a little bit like a door shutting
in my face. I'm not upset with the outcome. Honestly, it's a huge job with lots of foot
traffic and lots of ductwork, so I'm kind of glad we don't have to do it.
Is there anything you would have done differently on this? I'd really like to know your thoughts,
whether it's positive or negative. I want to take something away from this to make me
better, but I guess I'm not sure if my final response back to him was too harsh, and maybe
that's why he didn't respond anymore. Let me know your thoughts down below.