Should Electrical Contractors Give Price Quotes On Phone?
Many times, you get an inquiry call whose sole motive is to know the price for a such and such electrical job. If the job is lucrative or a straightaway repetitive job, you might feel tempted to give a quote. But is that the right strategy to follow? Let’s take a closer look.
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How should Electrical Contractors handle a Request For Quotation (RFQ)?
When your customer asks you for a price on the phone, you shouldn’t quote it straight away because as the sales guru Michael Pedone explains that an RFQ points to the fact that they are interested in your services. And that’s it. It is not a guaranteed sale. So, you should rather use RFQ as a starting point to extend the conversation, this helps you to increase your closing rate and improve your client relationship. “You will be viewed as a real person who sought first to understand rather than someone who simply wanted a quick sale,” he explains.
Geoffrey James, an editor at Inc.com, writes, “Prospective customers just want you to throw out a number, but you need to use the opportunity to deepen the relationship.” You can spur this initial conversation into an opportunity to get to know your customer. Ask your customer about their job and their work. Listen patiently and enthusiastically.
And let them know you will get back to them after some calculations. Tell them that you will call back with a quote -- it will show the customers that you took time to calculate numbers and gave a reasonable quote. So, of course, you can quote the price on a call, but only after you have calculated it and conveyed the same to your customer.
It is also better to call your customer when they email an RFQ. You can ask your customer a few relevant questions in the first phone call to discover their underlying motives and then, subsequently, quote a price in the next phone call.
Estimate Vs Quote in the Electrical Industry
Since you have taken a sufficient amount of time to calculate the price, it will count as a quote and not a guesstimate. Customers tend to prefer quotes because they have a fixed idea of the price and can judge whether your price is within their budget. As opposed to a quotation, an estimate is a vague price and is only used as a starting point. Since quotes are legally binding, you should only use them when you are absolutely certain of all the costs -- material, labour, and hidden -- involved. Whether you are providing your final price or an estimated price, it is always in your favour to communicate the same to your customer, too.
So, what do you think? Will it work for you? We would love to know more about your experience with the above strategy!
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