I used to bid every job by gut feel and got burned four times last year

Switched to a detailed takeoff system after losing $12k on a single HVAC install in Phoenix. Now I run every bid through a spreadsheet with material and labor breakdowns before I even send it. Any of you guys moved from rough estimates to hard numbers and seen better margins?

2 comments

2 Comments

matthews2122d ago

Man, I had a buddy who did commercial roofing in Tucson and he learned that same lesson the hard way. He used to just eyeball material needs for flat roof repairs and lost his shirt on a big warehouse job when the price of membrane shot up mid-project. He switched over to using a digital takeoff tool and now he tracks every square foot and labor hour before quoting anything. His margins went from maybe 8 percent to closer to 18 percent after that one change. Sounds like you're on the right track with that spreadsheet, it just takes one big loss to make you go all in on the numbers.

alice_palmer2022d ago

That whole thing reminds me of how people cook, you know? Some folks just toss ingredients into a pot and hope for the best (like my neighbor who ruined chili three times last fall). But once you start measuring flour and timing your baking, everything comes out consistent. It's the same with estimating - gut feelings are for gamblers, not people trying to run a business long term. Hard numbers just take the chaos out of the equation.