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Thread: Estimates

  1. #1
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    Estimates

    We have found in our area when giving estimates we are pretty much in the mid range price and was curious how others complete estimates? If you don't mind us asking. How much do you mark up equipment you get from suppliers? How do you come up with your markup...just a random number? Basically, we are wondering how other companies in our area are surviving by pricing their estimates so low and if we need to re-think how we complete estimates.

    Also, we are a VERY small company but looking for a way to send estimates where customers can electronically sign them and email back. Any suggestions?

    Thank you for any help that can be provided.

  2. #2
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    Usually use a multiplier on the cost of the equipment, we don't get every job, but we are not in it for fun either. Get your pro membership and we can talk more.

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  4. #3
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    Thread Starter
    Thanks. Considering the requests and requirements for a pro membership, I believe I don't qualify so I will research answers elsewhere. I am running the office portion of our heating & air business and do not have extra time to post on forums other than to ask questions unfortunately. I appreciate your willingness to help!

  5. #4
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    Well your markup is going to be based on what people are willing to pay. Here in Seattle people generally have a lot more money so they're willing to pay a bigger markup, than compared to a small poor town. You'll have to just take a look at what your competitors are paying and charge accordingly.

    You can always just email a bid to people. I always like to include links to the manufacturers website so the client can see what I'm going to use. They can always just sign, scan, and email it back if they have a printer/scanner.

  6. Likes ga-hvac-tech liked this post
  7. #5
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    Quote Originally Posted by mpbluemtn View Post
    Thanks. Considering the requests and requirements for a pro membership, I believe I don't qualify so I will research answers elsewhere. I am running the office portion of our heating & air business and do not have extra time to post on forums other than to ask questions unfortunately. I appreciate your willingness to help!
    Thats a shame. As in the Pro forums, we also have a Pro Business and Marketing forum. Which it sounds like you would benefit from.

    Remember, you can also post here from home.
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  8. #6
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    Quote Originally Posted by mpbluemtn View Post
    Thanks. Considering the requests and requirements for a pro membership, I believe I don't qualify so I will research answers elsewhere. I am running the office portion of our heating & air business and do not have extra time to post on forums other than to ask questions unfortunately. I appreciate your willingness to help!
    You're nearly half way there to a Pro membership and the business and marketing side of the forum, too.

    I mark up 2X across the board and my hourly rate is a bit lower than most. Im not in the habit of being a charity. I do OK on my quotes. I win about 35-40% of them and Im OK with that.
    This forum requires that you wait 20 seconds between posts. Please try again in 50 seconds.

    Experience - knowing when to get the hell out of the way and plug your ears. "Don't be a sissy. Turn it on!"

    Poodle Head Mikey - "the world is well populated with the unknowing and the uncaring and the stupid."

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  10. #7
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    Quote Originally Posted by mpbluemtn View Post
    We have found in our area when giving estimates we are pretty much in the mid range price and was curious how others complete estimates? If you don't mind us asking. How much do you mark up equipment you get from suppliers? How do you come up with your markup...just a random number? Basically, we are wondering how other companies in our area are surviving by pricing their estimates so low and if we need to re-think how we complete estimates.

    Also, we are a VERY small company but looking for a way to send estimates where customers can electronically sign them and email back. Any suggestions?

    Thank you for any help that can be provided.
    Ask the customer whats the best price they have got so far, if it's legit ie; not under cost etc... Tell them if you beat the price will they sign off on the job then and there!

  11. #8
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    Quote Originally Posted by HVAC_Marc View Post
    You're nearly half way there to a Pro membership and the business and marketing side of the forum, too.

    I mark up 2X across the board and my hourly rate is a bit lower than most. Im not in the habit of being a charity. I do OK on my quotes. I win about 35-40% of them and Im OK with that.
    I am interested in the business and marketing side of this forum.

    Is this a paid account?
    How do I sign up?

    Thanks,
    Jay.

  12. #9
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    Quickbooks you can email an invoice for the job and have them pay securely online with bank account or credit card.

  13. #10
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    Quote Originally Posted by hammersheating View Post
    I am interested in the business and marketing side of this forum.

    Is this a paid account?
    How do I sign up?

    Thanks,
    Jay.
    You become a Pro member. Then ask Dad for access after you submit proof of owning a business. There are no paid accounts here except for Sponsor accounts.
    This forum requires that you wait 20 seconds between posts. Please try again in 50 seconds.

    Experience - knowing when to get the hell out of the way and plug your ears. "Don't be a sissy. Turn it on!"

    Poodle Head Mikey - "the world is well populated with the unknowing and the uncaring and the stupid."

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  15. #11
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    You can pull a number out of your nether regions or, you can figure your actual equipment, material, labor, and misc costs, then calculate your overhead and use that as a multiplier, then add in the profit margin you want and that is your price. The the question becomes 'have you proved you are worth that much". If you have proved your worth the job is sold even if you are the highest. If not you may not get the job if you are the lowest.

    I don't do many bids but have a close rate somewhere north of 75% and don't care if I am the only one or if everyone and their dog is bidding.

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  17. #12
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    Pro membership with access to business and marketing, requires 30 post.

    We have a Business and Marketing forum, and a Pro Sales forum. Just to mention a few of the Pro forums you may find of value.

    I believe its somewhere around 17 forums in the Pro only area.
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  19. #13
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    Quote Originally Posted by psehunter View Post
    Ask the customer whats the best price they have got so far, if it's legit ie; not under cost etc... Tell them if you beat the price will they sign off on the job then and there!
    That's great advice if you are smaller and don't have the clientele built up. If you are willing to ask and the price is fair to you and something you can profit from then no shame. Always look for the LTV in the contracting industry.

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