View Full Version : Estimates

05-19-2000, 10:00 PM
Have any of you guys ever figured an estimate and thought that it sounded pretty high? What did you do? I just figured an estimate and it seemed high to me. I dought the customer will want the work done for that price, but I can't seem to lower my figures because there is a lot of work that they want done. Probably somewhere in the neighbor hood of 52+ hours on site + materials. I wondered if anyone had any suggestions from past experiences. Thanks,<br>Smith

05-20-2000, 12:48 AM
Don't worry it won't be too much!

05-20-2000, 12:54 AM
Better to try and lose than go down and lose.......your butt, which is what they are hopeing for anyway I'm sure. Submit the bid and don't lok back unless you can stand to shave it or need the work!<p>Homer

05-20-2000, 03:15 AM
Second guessing yourself on a price is the <br>quickest way to do your arse on a job.<p>Karl<br>

05-20-2000, 06:38 AM
Sometimes I may tell the customer,&quot;This may seem high but you have alot of work here,if it goes well it could be less&quot;..If it does and you can take a little off they feel they got a deal..good for the Biz.Homer made a good point...how busy are you...do you need the job if you don't realy need it,just go with it and hope for the best..GOOD LUCK<p>----------<br>John <br>

05-20-2000, 07:48 AM
#1 rule, dont try to guess how much a customer is willing to pay, it will cost you your shirt more times than not.<p>Two siding contractors lost their chance to bid on the job for my home because they tried to sell me something I didnt want because it was &quot;cheaper&quot;. And this was before they ever quoted me a dime. Nowhere did I say that I couldnt afford the job as spec'ed (yeah house looked like s#it why do ya think Im getting siding quotes???) and it was very unprofessional of them to assume such.<p>Submit the bid as figured, it includes what the customer requested and what you need for markup to stay in business, if its too much for the customer (maybe they dont know what its ultimately going to cost, maybe they think it will be double your quote you dont know these things) they will tell you (or you get it out of them when you present the bid and sell the job) then you can modify the bid specs if the job is too much money for the customer.<p>Bill

AGG Lawn Maintenance
05-20-2000, 08:11 PM
Unless you run a part time under the table business stick to your guns!!! You might have payroll, and many other exspences. If you sign them up for a contract then maybe you can bend a little bit. Or if you get them to get there own materials and you do the labor? Just a thought! I give customers a discount for referals. If I put a Real Estate type sign in there yard I also discount. It helps build your business. After all the best way to get business is through referals!!! Good Luck :)<br>Travis <br>AG&G Lawn Maintenance

05-22-2000, 12:15 AM
Just to let you all know, I didn't lower my price at all and to my surprise, the customer did want us to do the work. Thanks for the input. <br>Joe

bill phagan
05-23-2000, 05:24 PM
I agree with the preceding suggestions about sticking to your guns! The key to good and profitable estimating is to understand what should make up the selling price. Those items include DIRECT JOB COSTS, OVERHEAD RECOVERY and WHAT YOU WANT YOUR PROFIT TO BE. It really doesn't matter what your prospective customer thinks about the price. Put them in a position to say &quot;no&quot; and you'll probably get profitable jobs. There are no standards of pricing in our profession and if you are a professional, understand our unique business nuances, horticulture and can convey this info to the prospect, you're way ahead of the competition. Some people use a dartboard pricing method or simply guess or ask a competitor! Imagine that! Typically the guy asking questions aspires to make $100k and is listening to a guy who makes $18k. What's wrong with this picture? You can learn to do estimating without SWAG. <p>Good luck.<br><p><font size="1">Edited by: administrator

05-24-2000, 07:37 AM
Way to go Joe! Next time you won't feel so bad! What makes you feel bad is when you ponder your price, change it 5 times, then the customer says, &quot;Well now, thats not as high as I expected&quot;. Boy that burns me a new one!!!!!!!<p>Homer

Richard Martin
05-25-2000, 06:13 AM
HOMER wrote:<p>{What makes you feel bad is when you ponder your price, change it 5 times, then the customer says, &quot;Well now, thats not as high as I expected&quot;.}<p>I used to do this. I would come up with a price to cut a lawn and then slowly bargain myself down 5 to 10 dollars at a time until I had a price I knew they couldn't refuse. And it worked! I know that Mr. Phagan discourages asking competitors what they might charge for a job but I did and found out that I was underbidding on most of my bids. I have since started asking for the first bid I come up with and I find myself getting just under 50% of the jobs I bid on. Oh, and all of those jobs that I underbid, I have since either raised them 5 dollars a cut or informed them that they will be going up next year 5 dollars a cut. I retained 100% of my customers from last year (not a lie) and every one of the customers who I have informed were having their prices go up next year have said they didn't have a problem with an increase.<br>