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Thread: How to estimate jobs

  1. #1
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    How to estimate jobs

    How do you estimate large jobs. Do you go off time and chemicals plus the size of job. As we grow I am trying to get more of a system down for everything. We are trying to think more on a percentage now and what is the correct percentage to get the job or you may out price it.
    Percent of
    employees pay
    Chemicals
    Gas
    Ect.
    Rolling Suds Inc.
    Brian Wendling
    Power washing in Pa.
    Roof Cleaning in Pa.
    http://Rollingsudsinc.com

  2. #2
    I documented my costs to do jobs in the beginning years and then broke that down per s.f. There really is no other way if you want to turn over estimating to guys/girls that don't have our experience. I'm sure you can eyeball a job and I do that too. Once you have your costs per s.f including overhead, you add your desired markup. A 33% markup = a 25% margin.

    The advantage to doing it that way is that you can quickly calculate your profits by just looking at your overall gross dollars. It also makes training sales/estimating people more systematic.

  3. #3
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    That is my point. What is the percentage. 33% is still not enough to get 25% of the job.
    How does everyone come up with there percentage. I do like the 25%.
    Rolling Suds Inc.
    Brian Wendling
    Power washing in Pa.
    Roof Cleaning in Pa.
    http://Rollingsudsinc.com

  4. #4
    If you are marking up everything 33%, you would be making a net margin of 25%.

    I take a year round salary and shoot for a net margin of 10%. Some guys take the profit as their salary so numbers will differ depending on how you are set up.

    For big jobs, its important to know what percentage of the overall sales they make up. Big jobs are usually lower margin to stay competitive in pricing so you use your percentage to blend your margins together. If that makes sense.

  5. #5
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    10% margin? It would depends on salary but that sounds low in this industry
    Rolling Suds Inc.
    Brian Wendling
    Power washing in Pa.
    Roof Cleaning in Pa.
    http://Rollingsudsinc.com

  6. #6
    Quote Originally Posted by Rsuds View Post
    10% margin? It would depends on salary but that sounds low in this industry
    A 10% company net is actually pretty decent but you are right, depends on salary. Walmart operates on 1% but their CEO makes $35M / yr.

  7. #7
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    Quote Originally Posted by pressurepros View Post
    A 10% company net is actually pretty decent but you are right, depends on salary. Walmart operates on 1% but their CEO makes $35M / yr.
    Is that 10% net after owner salary?
    Chad Johnson
    East Tennessee Power Washing
    Knoxville, Tn.
    865-368-0847
    www.easttnpowerwashing.com

  8. #8
    Quote Originally Posted by Johnson View Post
    Is that 10% net after owner salary?
    Chad, yes.

  9. #9
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    Quote Originally Posted by pressurepros View Post
    Chad, yes.

    That's what I figured Ken.





    Quote Originally Posted by Rsuds View Post
    How do you estimate large jobs. Do you go off time and chemicals plus the size of job. As we grow I am trying to get more of a system down for everything. We are trying to think more on a percentage now and what is the correct percentage to get the job or you may out price it.
    Percent of
    employees pay
    Chemicals
    Gas
    Ect.


    Hey Brian, its not always relative. On large jobs I shoot for x amount per day. If compared to a similar project it calls for more chemical than usual, any specialty chemicals, any PITA factors etc. - then I'll adjust that rate.

    Take what you're doing now and look at your costs and man hours then average it out. That should give you a pretty good starting point for figuring percentages.

    Happy New Year!

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