Hey Guys,
I’m a very small remodeler working on high end projects near San Francisco. I am a one man shop, carp, manager, accountant, sales, etc. etc. I am lucky that most of my projects are T&M, but I am finding clients want estimates (lol, how dare they care how much of their money I spend), and being relatively new to the business, I’d love to see how everyone does their estimates. As it is, I don’t have enough time in the day to actually do the work itself! Software? If so, suggestions? Old fashion take off lists given to the lumber yard, hardware store for pricing? Any help and advice is greatly appreciated.
Thanks guys!
Replies
Hey KB
I would start with a spreadsheet (Excel, Quattro Pro, Lotus 123(if it's still around), etc) if you're just starting on estimates, or if you're not into computers just a legal pad and calculator.
Figure all your materials (plus goof-ups), labor (hours x hourly rate), plus goof-ups) and at first (VERY important at first), multiply everything you come up with by 2 (at least).
What you want to make sure of, is....that you do not leave anything out of your estimate and end up eating it (which you will still do in the begining, even when you're careful...it's a learning process...and it never ends).
Don't be scared, just be careful and thorough when you are going over the job in your mind (and don't do what a lot of us do when it comes to the final #...."oh sh!t, that's way more than they (or I) was thinking"...the numbers don't lie...start off smart and don't underestimate yourself or your work....how you price your quotes now will dictate what you charge later...so be good to yourself.
Jay F
Thanks. Ya thats what I have been doing mostly, but when it comes to getting materials pricing I didn't know what most guys did, submitting lists to suppliers or using databases, etc.
If I don't know the material price, I go down to the lumberyard and get the prices from them. Easy.Rich BeckmanAnother day, another tool.
DW works in an office and shes always making me feel dumb about such matters.Shes right .
I normally go to the lumber yard for a quote and stand in line in commercial sales.
If you call them they have to answer the phone . She said why dont you have them fax it to ya and go on to work. Itll be here when you get home tonight. It was .
Same thing on a lost ticket the other day.
Tim
The easy part is figuring your materials. that is what it is plus your markup.
Its all in the labor! Thats the hard part to figure out. As a new contractor pay close attention how long things take you and don't forget set up and clean up.
Don't forget accounting for second floor walk ups with materials. Its all those little things that will end up costing you. Look at it this way...when you look at the job youre not working. Goes much faster in your head while youre standing there thinking then than when youre doing the job....Another thing...don't be a good guy about prices or freebies. Be a good guy about giving quality work...think of it that way.They'll either take you for a sucker or a craftsman. Take your pick.
Another biggie is to NEVER give a customer a "guesstimate" no matter how hard they plead. You "will" be sorry!
Another tip is no tto talk to the customer too much...you'll eventually say something you shouldn't...Remember, "less, is more"!
BE well
avi
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Andy, I've been readin' your babble here for close to a year. Those were the best words I've seen yet. You just boiled about three books worth of stuff down into four sentences. Now if I can remember them and pay attention, maybe I can make some money!!
Don K.
EJG Homes Renovations - New Construction - Rentals
I agree with what Don said...your post seriously made me think that this thread might be good for printing in the magazine simply because I can picture a few of your phrases as very eye-catching callout quotes. Great contribution, thanks!Justin Fink - FHB Editorial
Good Points Andy---
I think estimating is as singular as selling is. Different clients--differing approaches and different salesman will use their own singular techniques.
I've been at it about 18 years so I know most of the costs off the top of my head.
Rather than guessing at their budget I ask them straight... What kind of budget were you hoping for... if they hesitate I tell them +/- $10,000 or whatever. We have to have a budget that will get you what you want--or we have to change the scope to make your numbers fit with the costs.
When it comes to what we do--general pricing and hundreds of options are broken out in the pricing guide... same guide I used back when I was installing--(with a few extras).
It takes time to get a grasp of working the initial ballparks--once you do the sales ratio goes up dramatically.
So--I disagree entirely with the ballparking being the kiss of death.
L
GardenStructure.com~Build for the Art of it!