Do You Charge for Quotes and Proposals or Offer Them for Free?
I never really considered the possibility of charging for a review, quote, or proposal until recently. I’ve always provided these services for free. Generally, for books that are up-to-date, the process is quick. However, when dealing with books that require a bit of catching-up, providing a thorough quote can become quite time-consuming.
This situation leaves me in a dilemma. On one side, I’m firmly of the opinion that no one should work for free, especially when some quotes demand substantial effort. On the flip side, charging for an initial assessment of their books feels somewhat off.
What do you think?
For those who do charge—how do potential clients react to this? Do you use a flat rate? Is charging always your practice? Am I missing something here?
Update: After nearly 23 hours, this post has been viewed 5,100 times and received 50 responses (about half of which are my replies). If you don’t want to read through all of them—although I think it’s worth it for the interesting perspectives and ideas:
- Most respondents said they do NOT charge for proposals, and many consider it a bad idea.
- A minority do charge for what is often referred to as a “diagnostic,” but they typically deduct this fee if the client proceeds with their services. This approach is generally reserved for clients requiring significant cleanup work and includes a report detailing the necessary tasks, which the client may take elsewhere if they choose since they’ve paid for it.
- Respondents compared this practice to scenarios like talking to a store employee, paying an entry fee at McDonald’s, undergoing a dental checkup, receiving a mechanic’s diagnostic, and a few other examples that escape me.
One response
Charging for quotes or proposals can be a contentious topic among professionals and businesses. Here’s a comprehensive look at the considerations and practices associated with charging for these services, based on your observations and additional insights:
Considerations for Charging
Cons: Introducing fees might discourage potential clients who are shopping around and could look elsewhere if they face upfront costs.
Perceived Value:
Cons: Conversely, clients may view free quotes as a mark of customer service and goodwill, fostering a positive initial impression.
Market Norms:
Strategies for Implementing Charges
Some businesses charge a “diagnostic” fee for extensive assessments, which is later deducted from the final bill if the client proceeds with their services. This approach helps to mitigate upfront costs while ensuring your work is compensated.
Flat Rate vs. Case-By-Case:
A flat rate ensures transparency and simplicity, while a case-by-case basis allows for customization based on the complexity of each project.
Value-Added Report:
Insights from Respondents
Most professionals do not charge for proposals, viewing it as a competitive advantage or a necessary element of customer service.
Minority View:
Cultural and Contextual Analogies