Who still guesstimates? Don’t be shy we’ve all done it.
There’s really nothing wrong with guesstimating as long as you’re the only one doing estimates, but what happens if you’re unavailable to do estimate maybe you’re on a vacation, or maybe you’re home sick for the day.
How will your company survive, let alone grow, if you are the only one estimating?
The only way to have good estimates is if everybody is estimating the same way. You should all come up with the same number for the same job.
The best way to do that is go with square footage pricing. Square footage pricing is not perfect, it also has problems. Not everything is painted with the same product or the same procedure, so even though you go with square footage pricing you need to be able to adjust those prices.
I’ve been asked several times how do you go from guesstimating to square footage prices.
Take a 10 by 10 by 8 room (320 sq.ft.) and guesstimate how many hours is going to take you, multiply that by your labor rate and that will give you the labor cost for that job.
Then simply divided your labor cost by 320 and that will give you a square foot price for labor The same room has 40 feet of base, guesstimate how long that’s going to take and divide that by 40. You now have a linear foot price for labor on the base.
That room has two doors sides, jamb and casing, how long will it take you to do two doors and then divide that by 2, now you have the door and jam price for each side. You can do for the same for the ceiling, crown mold chair rail.
Anytime you start estimating a different way you should always double-check yourself so do you estimate the way that you normally would and then check it with the new process and see how close they are.
If you do things by square foot method, it is much easier to scale your business. Someone else can come in and measure room the same way you measure and come out with the same prices.
We use Estimate Rocket, and I wrote another article on the top 3 thing to love about Estimate Rocket here.
One day you may have 1,2 or 7 estimators and it is good if they all come out with the same price. Then you’ll be on your way to double, triple or quadruple your business. Here’s to you QYB!