Make 60% Margins Installing Christmas Lights (with expert quoting skills)

You can be on the verge of closing a huge job, only to get ghosted by your customer.

You may be left wondering, What went wrong? 

In the competitive world of professional light installation, knowing how to quote jobs accurately and effectively can make or break your business. Let's dive into the essential elements of creating winning quotes that help you land more projects while maintaining a healthy profit margin.

Please Note: This quoting guide is a perfect fit for holiday light businesses that operate on a selling model. To discover if a leasing model is right for you, check out our blog post on Selling vs. Leasing. 

Key Components of a Professional Quote

1. Linear Footage Assessment

Start by measuring the total linear footage of areas requiring lights. This includes:

• Rooflines
• Landscaping (trees, shrubbery)
• Miscellaneous Spaces (pathways, special ornaments)

2. Labour Estimation

Estimate the time it takes to install on each of the lit areas:

• Rooflines (1 - 3 minutes per foot of roofline)
• Landscaping (8 - 12 per string of Mini Lights)
• Ornaments (8 - 12 minutes per unit)

💡 Pro Tip: Include removal in your labour time estimate. Removal should take roughly 25% of the installation time.

3. Cost of Goods Assessment

Now that you've figured out what products you'll need, you can figure out how to price them accurately. Often, as an installer, you'll use small tools on jobs that can't be neatly counted or estimated. Here are some examples:

• Clips
• Gas money
• Painter's tape

Therefore, it's recommended to add 10% to your unit cost to account for these miscellaneous budget items.

When costing goods, you can choose a margin that you want to sell at. 40-60% is generally acceptable for home services businesses. If you charge much less, you're undervaluing your work. If you charge much more, you may not price as competitively as you would like. 

3. Cost of Labour Assessment

Presentation Tips for Sales-Worthy Quotes

Now that you know how much your project will cost you and how much you need to charge the client, it's time to show them the numbers. Right? 

Wrong.

Before you show a quote to your client, you'll need to format it so that it's not only presentable, but also attractive to them.

Make your quotes stand out with these professional touches:

• Use digital design software to create visual mockups
• Include high-quality photos of similar completed projects
  
• Add your company logo and professional formatting

Here's what your client sees:

💡 Pro Tip: Don't show your clients the hourly labour rate. Provide only the lump sum, or else they'll start poking holes in your pricing.

Following Up on Your Quote

The best way that you can close a deal is to hand the customer the quote in person, right after you've surveyed their house. Don't wait until you get home to send an email later that night. Sending a quote over email may encourage them to look at quotes from other installers. That will lead you into a pricing battle to the bottom.

Instead, show your customer the quote so that you can answer any questions they have. Producing a quote quickly shows how professional you are, and will instill confidence in your abilities.

💡 Pro Tip: Secure 100% of your fee before Christmas. It becomes difficult after the holiday season to track down payment from customers.

Building Long-term Relationships

Remember that each quote is an opportunity to build a lasting client relationship. Consider offering:

• Early booking discounts for next season
• Referral incentives
• Multi-year service agreements
• Seasonal maintenance packages

Tools and Resources

Utilize these tools to streamline your quoting process:

• Professional quoting software
• Mobile measurement apps
• Digital design platforms
• Customer relationship management (CRM) systems

💡 Pro Tip: Always include a validity period for your quotes (typically 30 days) to protect against price fluctuations and seasonal demand changes.

Frequently Asked Questions

• How long does it typically take to prepare a professional quote?
  A thorough quote usually takes 1-2 hours to prepare, including site visit measurements, material calculations, and professional formatting. Complex projects may require additional time for detailed mockups and special considerations.
  
  
• Should I require a deposit before starting the installation?
  Yes, it's standard practice to require a deposit (typically 25-50%) before beginning any installation work. This helps ensure client commitment to the project.
  
  
• What should I do if I have a large additional cost?
  Always include any large additional costs, such as, for example, a crane lift. If you require a rental that is outside of your typical operating cost, include that in the quote and add a 10% margin for the extra administrative work.
  
  
• How often should I update my pricing structure?
  Review and update your pricing structure at least annually, considering factors like material cost changes, labor rates, and market competition. Seasonal adjustments may also be necessary during peak periods.

Summary

Creating professional quotes for light installation projects requires a systematic approach that combines technical knowledge with business acumen. Key takeaways include:

• Thorough site assessment and client consultation are crucial for accurate quotes
• Include all material and labor costs, plus contingencies for unexpected challenges
• Professional presentation and clear communication enhance quote effectiveness
• Follow-up and relationship building are essential for long-term business success
• Utilize modern tools and software to streamline the quoting process

By following these guidelines and continuously refining your quoting process, you'll be better positioned to win projects and grow your light installation business while maintaining healthy profit margins.