After reading our books and trying to do things right, why is he still not making any money?
Estimating
Estimating, Labor Burden, and Cost of Goods Sold
When you own a small business you wear a lot of hats. Understanding the numbers might not be your favorite hat, but numbers are important because they show where you stand financially.
Stop Giving Free Estimates
You should stop providing free estimates. It’s called free consulting, and you won’t be successful giving away your time. (Guest Article from David Lupberger, Remodel Force)
Strengthening Your Business
I’ve been around the construction industry long enough to know that it isn’t always rosy. When a recession hits, construction is one of the early victims.
Estimating Incomplete or Conceptual Plans
To be blunt: projects like this are a waste of time. I’ve rarely if ever seen a request like this turn into a contract
Preparing to Estimate
Estimating is necessary, but it isn’t easy; it’s hard, tedious work. There are four basic things you need before you begin your estimate.
Your Labor Rate and Your Markup
Using the wrong labor rate, or using someone else’s markup when you don’t know their assumptions, is one of the biggest mistakes we see and the difference can be thousands of dollars.
Free Estimates
What you do has value. Respect your time and your knowledge.
Surprises Aren’t
Estimate your jobs properly so surprises don’t happen.
Get a Commitment Before You Invest
If you want to make the best use of your time and not allow others to waste your time, don’t estimate major projects without a design agreement.
Estimating Basics
When profits are down, missing the estimate on jobs is almost always part of the reason.
Estimating Blunders, Part 4
Error factors, Superman complex, Demolition and Discovery agreements, hauling out the trash.
Estimating Blunders, Part 3
Know the inspectors required in your area and add an “inspector factor” to your estimates.
Estimating Blunders, Part 2
You have a choice in how you do your estimating. Some methods work well, but unfortunately, many don't.
Estimating Blunders
The purpose of an estimate is to price the job. If you want to be profitable, accuracy matters.
Making it Work, Profitably
My clients are constantly chiseling me down, everyone makes money on the jobs except me.
Itemized Estimates
Why clients request itemized estimates, and how you should respond.
Estimating: How to Improve Your Profit Margin
Estimating errors cost money. Lower your error factor but considering these common mistakes.
Basics in Estimating
Estimating basics, with the goal of getting you back to the potential client quicker with a more accurate estimates.
Create Accurate Estimates
If you forget to include the cost of insulation, you’ll be paying for it out of your own pocket.