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Site Survey Fees?
This thread has 5 replies. Displaying all posts.
Post 1 made on Thursday March 2, 2006 at 21:45
Mr. Stanley
Elite Member
Joined:
Posts:
January 2006
16,954
O.K. not trying to nickle and dime clients... but over the last few months, there has been a trend...
A client will call up, and ask you to come out to their house for an estimate or ideas ... You fight traffic, get lost, race to get there on time and do a great job of helping them to understand what they need, and how to lay things out...
In our area that means at least a 45 minute trip even if it's like 10 miles from our shop---traffic.
You go there, look things over find out what he wants... and get back with him in a day or two with a bid & list of suggested equipment, and solutions to his problems or whatever... No hard sell, no B.S. just honest concise info... and tips on how to save money etc.
Then that guy vanishes... won't call back or email... You've taken a good amount of your time, put a lot of thought and effort into it... but for all you know the guy is probably going around you, after your free information and education... Standing in line at the local Costco or on line checking out supposed good deals.
A large CI outfit in our backyard now charges a $125 "site survey fee"... Right up front during the initial phone call, they inform the client about it so it isn't a surprise...They'll go out for the meeting at the home or site, charge $125 on the spot... and let the (future) client know that if they go with a system say over $1000 bucks... They get that $125 site survey charge back. The client gets an info packet, BRIEF proposal, maybe a Home Theater Magazine, and the ol' handshake.
I used to think that was a little greedy, but now it makes total sense to me... It'll also weed out the folks that either are not all that serious or not ready to do anything for quite a while... Or don't value YOUR time, although they value theirs!
Last couple of months I visited 5 or 6 guys who went away... and most of them had me go to their homes after THEY got home from work... 6:00, 6:30 7:30 or... on a Saturday or Sunday... Some of them lived a long ways from our shop 60 miles or so...
Hey! I'm on commission, so I gotta do what it takes... but man oh man it can get old.
Anybody else out there charge for initial house visits?
I think they might respect our time a little more if we start the process that way???!!???
A guy I know even flew down to bid a big job in San Jose... the client ended up buying $140K worth of stuff he suggested to a "t" at the audio shop down the street!! This guy didn't even get a thanks!
"If it keeps up, man will atrophy all his limbs but the push-button finger."
Frank Lloyd Wright
Post 2 made on Thursday March 2, 2006 at 22:12
Terrmul
Advanced Member
Joined:
Posts:
April 2005
963
I put it down to CODB, Cost Of Doing Business.

I understand what you're saying but believe that it's up to us to close the deal. If we don't close then we're not doing our job. Installing cool stuff isn't our only job - first we have to sell it. Now I'm not a sales guy but I know that we didn't cold call, so we are being invited in to the house of someone willing to do business, because they called us.

....But that person will go to costco in a heartbeat if we don't sell the value that our services add.

If you're not closing then take another look at your sales techniques.

One final caveat, this is not to suggest that charging a fee may not be appropriate given the size of, or number of jobs you look at, but be sure that you're doing it for the right reasons.

Last edited by Terrmul on March 2, 2006 23:35.
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Post 3 made on Thursday March 2, 2006 at 22:25
Instalz
Active Member
Joined:
Posts:
April 2005
628
I charge 75.00. No refunds, don't take it off the install. I used to do it for free, but I had the same problems. Go over ideas, brainstorming, and then never hear from them again. I only charge this fee for surround sound, or audio/video jobs. If I go out and look at a large wall fish job or something, I don't charge, because I will typically get those jobs. But if I'm giving my ideas and so on, and putting together an estimate, I charge 75.00.
Post 4 made on Thursday March 2, 2006 at 23:29
Shoe
Founding Member
Joined:
Posts:
August 2001
1,385
I will try to go over the the proposed system with the customer, explain and educate, but will avoid leaving a detailed system plan when at all possible. A deposit will get me to willing part with the plans. This is not carved in stone and requires judgement calls now and then, but I don't like to give away my work for free.
Post 5 made on Friday March 3, 2006 at 04:39
Kevsigler
Long Time Member
Joined:
Posts:
December 2003
36
Depends on the customer.

Small work, $85.00 per hour, two hour minimum.

Job under $5,000.00, same charge, because our time is valuable. As a bonus for giving us the job during the estimate, we will offer the site survey at no charge if we collect a down payment.

Job over $5,000.00, we meet with the client, go over some general ideas, and take a $1,000.00 deposit to start the design process.

If you know your time is valuable, the client is lucky to have you doing his design work, he will think he is getting a great deal.
OP | Post 6 made on Friday March 3, 2006 at 16:20
Mr. Stanley
Elite Member
Joined:
Posts:
January 2006
16,954
On March 2, 2006 at 22:12, Terrmul said...
I put it down to CODB, Cost Of Doing Business.

Yeah, but The CODB doesn't mean you have to always roll-over. With shrinking profits and increasing costs, we have to make it up wherever we can. It seems to be working for Magnolia Audio Video... and they aren't stupid.
I understand what you're saying but believe that
it's up to us to close the deal. If we don't close
then we're not doing our job.

Obviously! But we aren't selling cars either... sometimes you may not get a reply for 6 months or a year... Don't always have to "close" them on the spot! But I understand what you're saying.

....But that person will go to costco in a heartbeat
if we don't sell the value that our services add.

1/2 of these guys had us do their pre-wires and speakers... But, they would investigate the internet reviews and pricing from our proposals. The whole Plasma thing is becoming a commodity business just like what happened to home computers. Same thing is happening with Projectors and Screens now... bums me out!
If you're not closing then take another look at
your sales techniques.

I appreciate the tip, and I have... Plus now I've started brushing my teeth, and taking at least one shower a week... seems to be helping... But if you think you should be charging for wire-pulling and trim-labor... why not ask for the sale for your knowledge of product, integration and experience?
I'd pay a dude to set me up with a good computer system, or to find me the best deal on a car... would save
tons of my time running around talking to ignorant sleazeballs, or 17 year old BBox idiots!
Last night it took me (no B.S.) - 45 minutes at a computer store to get "helped"... I asked the guy if they carried the IPOD holder that has as S-Video output... He looked at me and laughed!!! Said "We would if they made one", and walked away...! I finally found a pile of them a minute later!
Then I asked another guy where their home media audio / video servers were located... he led me to a row of internet switches... I asked if they carried any Buffalo or HP home media servers... he shrugged his shoulders said, no, got out of those two years ago and walked away... Guess what I found???!!! What has happened to all the stores... don't they care?
I'd rather pay someone, and (get it rebated back with a pruchase)... sorry for the rant... Are all these retail guys smoking dope in the back room or just naturally lazy dumb-asses?
"If it keeps up, man will atrophy all his limbs but the push-button finger."
Frank Lloyd Wright


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