Is there some trick to getting an estimate right? Whenever I overestimate, nothing seems to "go wrong," and I end up feelign like an idiot for quoting such a high price. Then when I give an "accurate" estimate, half the stuff behind the walls has to be replaced and it costs about three times what I told the client.
What is a good strategy for giving accurate estimates for a client?
Originally posted by randall: Is there some trick to getting an estimate right? Whenever I overestimate, nothing seems to "go wrong," and I end up feelign like an idiot for quoting such a high price. Then when I give an "accurate" estimate, half the stuff behind the walls has to be replaced and it costs about three times what I told the client.
What is a good strategy for giving accurate estimates for a client?
Hi Randall, I might suggest that when you do an estimate for work aggreed to be done, any other work needed that is discovered during the process be dealt with in this fashion: cost plus or change order. Cost plus can be cost of materials & labor,plus profit margin,15%-20%. Change order can be handled as an original estimate whichever way you do it. Don't sell yourself short. Hope this helps. Littlerhody
Randal, Markup ALL your cost of goods sold, that is all of your costs involved with the job, a minimum of 1.5% to maintain a 33% profit margin!!!! Anything lower and you will be out of business before too long and on the your way you will wonder why you never had enough money to go around. Once you feel comfortable at this level start moving your markup higher because we are all worth it!!! As long as you and your company are doing great work and you offer your customers "on time" and "on budget" first class work you should be paid accordingly.
I agree with the other items in the above reply but strongly disagree with the 15-20% margin.
Does anyone know or suggest books on the subject. I feel like a failer. I go over budget often. Ya, the customer tacks on two second things that sucks up the alloted time. also things like needing 3 coats of finish paint instead of two...
Just fishing for some insight in to better way of doing the estimating. I sweat each one. Being a rookie in someways on estimates. Banged plenty of nails but the paperwork is killing me. Help...
Honestly I think its in the % Whats the norm.
I take material and Mark it up and apply it to Estimate. Hours worked Add too Estimate O&P Then still doesnt match
What about safty Margins.... Is this what is missing that I need?
FlooringCrafts: Start with a contract with everything in writing that the customer wants. Use a very detailed list along with the retail price of each item line. Have your contract state that any changes or unforseen events will constitute a change order at an additional charge. Have the customer sign and date the contract and you do the same. Give them a copy. If you aren't sure of what you want to charge when assessing your customer wants, just tell them that you need to work up a price back at the office. This way, you can think all aspects through and you will come up with a more accurate estimate. Most important, get back in touch with them the next day. To keep your profit margin higher, check out alot of the suppliers in your area. They all charge different amounts. Some will give a discount if you order over a certain amount per month/year or if you have a contractors license. There are so many ways to cut costs that you will need a book. Check out the web. When I was shopping for a digitizer, the sites I visited also had alot of books. Good luck and I hope these few suggestions help! BJ
