construction business owner education and peer group program click to learn more

The Contractor Coaching Partnership Blog

Do you trust and really know your numbers? Estimating Workshop

Posted by Mark Paskell on Mon, Jul 14, 2014 @ 08:37 PM

In a recent Estimating Workshop a contractor said "I don't know how much I am making until I finish the job and pay all the bills! 
To many contractors that is an all to familiar scenario. Contractor and remodelers are discovering that being a good business person is just as important as being a great craftsman.
This contractor got me thinking about a few things;
  • How can you run your business and live your life if you are uncertain about what you are going to earn?
  • How can you accept a contract for a project without knowing all your costs down to the dollar?
  • How can you determine if you can lower your price if you are not sure of your costs?
  • Will your uncertainty cause problems on the home front?
  • Will the uncertainty lead to frustration and worry and take you off your game?
  • If an opportunity to purchase or invest in something comes along will you have the confidence to make the investment?
One way to alleviate the above uncertainty is to develop an estimating process based upon knowing your numbers. This means knowing exactly your overhead, your materials, your labor productivity, your burdened labor rate and the pre-determined mark up. 
In our estimating workshop with Remodeling Industry Expert Shawn McCadden we teach and give contractors the tools to immediately impact their business.Excel estimating for contractors
In many markets it is getting very busy on the remodeling front. With work backlogs rising and high demand the common practice is to start raising your price. With more workload many contractors are thinking of adding personnel. Do you know how much it will cost to bring on a new person?
Most will admit it makes sense to have a baseline knowledge of true costs. But few will admit that they are not sure and they wing it using clever methods to get to a number they think the consumer will bite on.
In lieu of not being sure having accurate knowledge of true costs leads to confidence when you present your price to a consumer.
Our last Hands on Workshop was in Connecticut. The next one is Shirley, Mass off Rte 495 and 2 on 8/14/2014. 
To register click here.
Note; Want us to bring the HANDS ON Estimating Workshop to your area let us know.




Tags: estimating workshop