How can I get people to understand that "Estimate" means, y'know, estimate?

W

william67

New member
This isn't really a legal question - I have a contract and all that - it's a psychology question.

I repair furniture. I provide estimates, but bill based on time and materials. I take a deposit up front of 50% of the estimate.

And people just don't get it. I'm very careful to always use the word "estimate", not "quote". The document I send them has "ESTIMATE" in big letters across the top. It has a whole paragraph about how we can't predict every outcome, etc. It says, IN BOLD PRINT "It is entirely possible that the final invoice will exceed the estimate." There's a page of terms and conditions that explains exactly how we determine the final charge. I deliberately laid out the print template so that the estimate doesn't look like a typical invoice. And usually my estimates don't even give "a" price, they give a range.

And yet . . .

I feel like I'm constantly fighting people. "Well you said it was going to be $X." No, I didn't.

Or they come to pick up the piece and they've already written the check for the other 50% of the estimated price. But I haven't given them an invoice, so why do they think that's the number?

I realize people have poor reading comprehension, but gahd it's annoying. Help me out here.

------EDIT:
I appreciate all the replies but you (mostly) aren't getting what I'm asking. My estimates are mostly on the money, if if they're off I'm under as often as I'm over. Everyone saying "build in extra" or whatever - I do all that. This isn't really about the money.

I'm talking about someone who shows up to pick up their piece, with the check already filled out, when I haven't even given them an invoice. And then they seem annoyed when they have to write another check. Like, at what other business would you do that?
 
@jc42 This is the key that I apply. I work in software which can easily have unexpected issues that triple the cost and time it takes to finish something. When I'm estimating something I put down the absolute longest I think it'll take me and then I double it.

They always complain if it costs more than expected, but they'll sing your praises if you normally come in under budget.
 
@wolfspirit It depends on how the contract is set up. I've done both styles. Most I've ever gotten paid per hour is $3,000... for a single half hour. Was able to finish a part-time two-week-long project in half an hour. Would never be able charge a hourly rate like that. However I've also poorly estimated things (even with my method) and I've ended up working ~10 hours extra to finish up a project.

Typically I do project based billing with every client to start. From there, if it becomes a more laissez-faire style contract, it's not worth writing up an estimate for every little thing they want done. Not having to bill out each individual thing and just track time makes it a lot easier to be flexible on getting paid regularly and being able to switch between different tasks when priorities inevitably shift.
 
@jc42 Similarly, when I give people a timeline for something I always make it a little longer than I actually think it'll take. That way, normally I'm "early" and then I'm "on time" if something happens and a fire needs to be put out.
 
@william67 Yeah, just make your estimates higher, you should be coming in close to it every time unless there is some catastrophe. If there is something that takes a lot longer then you should contact the client before the work is done and just let them know its going to cost more because you found x problem.
 
@william67 Surprised no one has said this yet, but I think this is on you. To most people estimate and quote mean the same thing, rightly or wrongly. You need to be more explicit, in writing, when you send the estimate and explain what factors could alter the price. Providing a range is also advisable.
 
@william67 How long have you been doing the work you do ? Are you continually undervaluing your estimates ? It’s really hard and being a finishing carpenter I totally get it ,keeping track of ever job so you can look back if you made money or not might give you better estimates overall The best money making jobs I did were quotes where I bid it higher less stress when it comes time for collecting also
 
@william67 I hope you don't take this as disrespectful. Since you asked I'm just sharing my perspective that I think a lot of people share. Most people want a professional who understands the labor and costs involved when they give an estimate. I would rather pay a little more knowing that you are locked into a fixed price and fixed timeline than get a lower estimate and worry you are taking too long, not working efficiently and will overcharge me. People are going to expect you to stick to your estimate or be very very close to that amount. So my unsolicited advice is go with a higher fixed price and very clear timeline with clear cut expectations or go with a slightly higher itemized estimate and overdeliver every time. No one likes to get hit with a higher bill than expected. They don't care if it's in the fine print. Again, no disrespect. I'm sure you are a pro and this is old news to you.
 
@skillz I'm in software development. This is one of the reasons I only do fixed price work. Once we agree on the features and I start the job, you know what it will cost and people appreciate that security.

The side effect it has is that they can't change anything after the fact, because then that will change the price. My projects are usually very small, so that's never been an issue.
 
@bishopoflyons Yes but imagine that you had to agree to that fixed price before you even knew what language you were going to code the project in. And once you get into it, it could very well be a language that you've never even heard of, much less know.

That's not the best metaphor, but that's about how it is for my work. We often don't even know the scope of work until we get into the job, and we often don't know how to do the repair until we experiment and figure it out.
 
@william67 How far off are your estimates? And when are you updating people.

Your estimates should be close ( within 10% maybe 15%) without good cause.

If you're estimating $300 and the bills are $900 people are going to lose their shit. Rightfully in my opinion.

When I did jewelry and we weren't sure we did a fee to diagnose and a max approved about (the fees diagnosis would be waived if they did the repair). Or we had fees at stages, eg having a design drawn up having a wax carved etc.
 
@photon 100% agree. It is always about keeping customers informed. No one wants to be blindsided and people want to understand why it varied estimates. People are more open to paying more when they are involved in the process and understand. They also feel much more respected as a customer when they are engaged.

You know when you are going over budget, make them aware. Sometimes it may be worth it to eat the cost. Like if you estimated $500, and it’s going to be $550, but the customer gives you $10k of business a year…probably best to eat it. If it’s someone you have never seen and don’t think they have much work, maybe it’s work trying for that $550. But they should know before you do the work. All of that said, if it’s only for 10% usually…just quote more. If you are blowing budgets by 15, 20, 25+ %, I think you need to reevaluate your estimating strategies.
 
@photon Agreed! THIS will save you a lot of trouble OP. When you realize “this part took longer than expected, hence it’s likely i’m gonna go over”, pick up the phone and tell them, and explain exactly why and how, etc. The “no surprises” approach could truly..surprise you 😅
 
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