Becoming the Builder of Choice: Showcasing Your Expertise from the Start

Charging for quotes isn't about asking for payment - it's about offering value and expertise to every prospect.

Gone are the days when free quotes were the norm. Today, builders recognise the potential of offering value and expertise right from the beginning.

The Industry Landscape 

Builders who charge for quotes are eight times more likely to win a contract than those who do not. Surprisingly, the State of Residential Construction Industry (SORCI) Report 2023 revealed that the industry remains divided, with 52% of builders opting for charged quotes, while the remaining 48% stick to the conventional free approach.

So, the question is: should you embrace the strategy of charging for quotes? The resounding answer is a definitive yes.

Getting Paid For Time And Expertise

Let's be honest: the process of quoting a project is anything but simple. Builders spend a lot of time working on quotes and, naturally, want to be compensated for the effort spent preparing them.

Often, when a residential construction company is not charging for quotes, the main reason is that other builders in the area provide them for free. This creates a sense of fear of losing potential projects.

So, how can you charge for a quote when your competitors do it for free?

The key lies in transforming how you communicate this charge to your clients.

Reframing the Approach: The Preliminary Package

Instead of directly saying that you will be charging a fee for preparing a quote, consider incorporating this service within a comprehensive pre-construction package, often referred to as a "prelim."

But there's more - you can take this concept to the next level by adopting the design-build model in residential construction.

Why do we recommend it?

Operating under the design-build model will help you sign a full-price "prelim" agreement faster.

This model transforms the dynamics of the builder-client relationship. By charging for the initial design phase, which would also be included in the pre-construction package, builders elevate prospects to the status of clients.

This shift in perspective can help you establish a foundation of trust and commitment that sets the tone for the entire project.

If you want to learn more about the key differences between a design-build model vs. simply quoting plans, listen to this episode of the Professional Builders Secrets Podcast with our Executive Business Coach, Erik Cofield. 

Educating on Value: Quote vs. Estimate

An estimate is essentially an informed guess of potential costs, offered for free and dependent on the systems used and your experience.

In contrast, a quote holds a different weight. It represents a fixed price that can be bound legally, showcasing a higher level of commitment.

Communicating the difference between an estimate and a quote can help set yourself apart as a builder who's truly invested in your clients' dreams.

Embracing the practice of charging for quotes can be a game-changer for custom home builders. By charging for the time and expertise invested in preparing quotes, you're not just seeking compensation but demonstrating your commitment to delivering exceptional value.

This shift isn't just about dollars and cents - it's about transforming how you communicate and setting a foundation of trust with prospects.

Want to learn more about how to generate high-quality leads and convert them into high-margin contracts? Click on the link below to sign up for our new webinar. 

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