Quotes can be easier to do!
Quotes. Everyone has different ways of answering that question. “Can you give me a rough idea?”
Different choices abound
- Do you have volumes of product catalogues to build your estimates and quotes with? Because the supplier may use online and catalogue pricing. If they have an online catalogue that may not show the older items the supplier still provides.
- Or do you sit on the computer browsing your suppliers and pulling through the estimators product code? This is okay when the number of codes that you use are small and the quantity surveyor provides them. But, what happens on the small jobs?
- Do you give your customer a rough idea, and take a chance on the cost?
Many apps import documents for viewing in the app, such as PDF’s of technical documents, or invoices or diagrams. We build business blueprints and deep client databases so you can save time with improved accuracy.
If you want to build a profitable business and advance your business, you need to use methods and techniques that are MASSIVELY DIFFERENT than these:
Generally available methods of estimating
Roughtimating (Guesstimating)
An estimate which is a guess is a quantitative approximation NOT based on previously observed data – and is rather based on gut-feel and a guess. Naturally this will attract a higher level of uncertainty.
According to Oxford Dictionary, “a guesstimation is an estimation based on a combination of calculations and guesswork”.
In the business world, guesstimation is a quantitative approximation, not backed by any previous data. In dynamic environments such as business, the scope is a moving target, therefore guesstimating the scope implies significant flexibility.
Budget
An “budget quotation” is a rough estimate of the costs which is prepared without a lot of detailed information.
Generally, you break down the budgetary quotation by providing a Design Brief for the requirements for high level headings etc, and show assumptions and their associated costs. Now you have a fairly good idea of the cost of the project and can begin to make some intelligent decisions about the feasibility, scope or specifications of the project.
One reason to complete a budget is to obtain full funding for the project and to provide a cost-control mechanism for the construction process. Creators can minimize exposure to cost overruns by accurately developing “real” costs. By developing an accurate scope of work for the project, it helps a lot as a tool to avoid disputes with customers that almost always result in cost overruns.
Pricing per-point
Is the tally of the total number of points and multiplied by an amount resulting in the project price (e.g. 150 points x $100.00 = $15,000.00). For example a webpage development, a pipe, page, post, or even in construction a power point, light, fan, switch, sensor etc.
This method of pricing is quick and easy but are thwart with danger as they don’t take into consideration the different requirements of each project.
This method commonly leaves you out of pocket, due to time eating into your profits. Problems may also occur which could impact the cost of the job with inaccurate take offs and therefore take longer than stated.
Uses a flat rate for their services, you can Create a flat rate price per assembly and apply this to estimates and quotes instead of manually defining the labour and materials. This can be a fixed price for the sum total of the labour and materials provided, or a chargeable rate.
Pre-builds or Assemblies
Can combine materials and labour, materials only, or labour only as a single billable item to appear on jobs, quotes and invoices. Each pre-build or assembly unit rate item could carry a higher overhead cost.
Similar to the per-point method this pre-build or assembly method commonly leaves you out of pocket, due to time eating into your profits. Problems may also occur which could impact the cost of the job with inaccurate take offs or in the schedule of rates removing the pre-build or assembly rate items during the project and therefore take longer than stated.
“When something is important enough, you do it even if the odds are not in your favor.”
Elon Musk
Other methods are available, and creating your own easy to use design brief spells out the quote for you. Let us help you with your design brief. Design briefs are different to budgets. Because everyone has financial limits that affect their capital investment, they depend heavily on your quote to develop accurate overall costs of their project.
Accuracy in quoting will get you more referrals and that will grow your business. It all starts with simplifying the key inputs into your estimates and quotes.
Grab a cuppa, pick up the phone and call me today!
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