Anybody offer a Good Faith Estimate?

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Papa Deuce

Mac Daddy DJ
Aug 8, 2006
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Valley Forge Area
I was talking to some contractors and a mortgage broker who brought up the term "Good Faith Estimate".

Now, I know what they meant, and in their fields, I guess it make great sense.

But I was wondering if any of you use this up a certain point before finalizing a contract. What I am getting at is, are their times when you really need to get every single detail before setting a price?

And by that I mean, you actually want to see the venue, or maybe the client is not ready to nail down whether they want 10 uplights or 20.... or maybe they have a date picked, but haven't actually lined up a venue as yet...I am sure their could be other reasons, but right now I can' think of any.

Have you provided a Good Faith Estimate to anybody? What was your reasoning?
 
I haven't used the term, "Good faith estimate' in this business. We've done agreements where they weren't sure if we were going to do the ceremony, or photo montage at the time they signed with us.

I guess the difference is, for me, it's really not an estimate, but some options they can add on later. They know exactly what the additional cost would be.

I think a "good faith estimate" is more about things that may come up that are unforeseen at the time of the estimate, not options later
 
All details are specified in my contract. I leave no "what ifs", or "grey areas".

I am selling a service, not a house, a car, or a boat.

All "EXTRAS" or "UPSELLS" are negotiated for 10 days before the event, at which same time I get paid for the event in full!.

This policy has been extremely beneficial to me in that I never have to chase a client for payment, and I know exactly what is expected of me before entering into a Contract For Services.
 
I guess if it was that complicated to determine a price, then I would make it clear that it was subject to change. However, for me, it is not. You tell me what, when, where and for how long and I'll give you a price. Whether or not your event is hypothetical or not, makes no difference.


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if you start doing that in our field then its going to get so confusing that you wont get things right

dont do it - never have - never will
 
I know a guy who recently did a multiple day corporate event for about $65,000. The company was just looking for a DJ, but he started asking questions and get more and more of the event booked thru him.

I don't know if he used that phrase, but he did give a ball park number before coming up with the final amount.
 
Dave Miller said:
I know a guy who recently did a multiple day corporate event for about $65,000. The company was just looking for a DJ, but he started asking questions and get more and more of the event booked thru him.

I don't know if he used that phrase, but he did give a ball park number before coming up with the final amount.
Click to expand...

That's where I was headed, Dave.... but you had it on a grander scale..
 
I offer a ballpark figure to many corporate/convention type events just to give them a rough figure to budget, and then cement in details and pricing as their planning progresses. For Djing there aren't that many variables that affect our pricing.
 
By the way, "Good faith pricing" for contractors, electricians, plumbers, etc. is what the job will cost on the assumption that there are no surprises once the work begins. By surprises, I don't mean client changing the specs, but once the wall is opened, there's something there that wasn't expected.

With us, even my friend with the $65,000 job, everything was detailed and signed for, months before the event began.
 
I hate giving "estimates"
so I always aim HIGH when pressured to offer one.
You can find out right away if they are price shopping or not...
and weed out the bargain hunters.
Plus if your "actual" price turns out to be less
you can either make them smile with a lower cost
or charge them what you estimated, and keep the extra money
 
There generally isn't any need to "estimate" in this business because there are no variable prices or interest rates that are likley tio change during the period of negotiation.

I provide a written Quotation, and that may differ from the contract or final invoice where things are added that were not part of the opriginal quote.
 
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