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| Thursday, July 29, 2010 |
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| [Sunday, November 12, 2006] |
| To provide my customers with what I believe is a proper cost to strip, seal, and apply finish, I use the following procedure:
I divide the square footage covered into the cost of a gallon of finish to get the finish cost per square foot. I do the same with the sealer and stripper. This is next multiplied by the square footage of the job.
Is this the best way to get material costs?
I also throw in the costs of the regular and finish mop heads, the scrub pad, and the floor machine rental. Then, I multiply the hours the job will take by $30.00 to get my labor cost to the customer. So far, I have been making a profit and my customers have not argued that I’m too high priced. Does this sound correct for charging a customer? Is this the best way to quote floor jobs like this?
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| Bidding & Estimating - Richard Schoolcraft |
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There are various ways to present a price quote. You can bid the lump sum, itemize materials, or quote time and materials. The lump sum tends to minimize price discussions, but can also generate sticker shock. Time and materials is subject to buyer scrutiny, especially if the buyer questions your hourly rate. Itemizing materials can lessen price objections by illustrating that a large portion of the bid consists of materials.
You can estimate chemical usage and quote the projected cost, or later bill the actual costs along with your labor and profit using the formulas you already have.
Keep in mind, your customer does not need to know all the details of your pricing, and itemizing supplies can have a drawback. An overly price conscious customer may want to furnish and substitute their own cheaper selections. If the results prove inferior, the customer may claim it was due to your workmanship. So be cautious; do not accept inferior substitutes.
Often you need to analyze a buyer’s needs and personality to counter with the best pricing approach for both you and the customer. One approach rarely fits all customers, but overall the one you are using is sound.
Gary Clipperton
National Pro Clean Corp.
(719) 598-5112
www.nationalproclean.com
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| ICAN representative |
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