Detailed Estimates & Bids Boost Profitability

Why are estimates and bids valuable? Well, providing clients a detailed, custom account of all job-related costs positions you as a true professional. Sure, it takes some time and effort but presenting a comprehensive and well-organized plan can not only give you a leg up on the competition, but also increase your reputation as a trustworthy professional. Even better, it helps ensure that you make a profit!

If developing your own estimates and bids feels a bit overwhelming, never fear! Behr Paint Company experts have compiled step-by-step guidelines to make this process more manageable and, over time, become a natural step in contracting a job.

ESTIMATING

The formula for estimating is as follows:
Material Costs + Labour Costs + Overhead Costs = Total Project Cost

Materials

First, list and price any products and tools you need for a job — including primer, paint, applicators, patching material, caulk, painters’ tape, sandpaper, drop cloths, plastic sheeting, and personal protective equipment, etc. Then, at each job, continue compiling your supplies list. Remember that every project is unique; therefore, this list will expand and contract as needed — yet it should be organized, flexible and easy to customize. Be sure to include your recommendations for the products to be used in each area to be painted, as well as the total square footage.

For larger projects, consider reaching out to your BEHR® Pro Rep to help specify the scope of work with an appropriate warranty that protects you and your customer and manages expectations.

Labour

As mentioned earlier, all paint projects differ, and many factors must be considered; therefore, labour costs will fluctuate. Begin by identifying each “stage” of a job (for example: preparation, paint application, quality control, and clean-up). Then, list smaller tasks, determine the costs per hour, and assign them to one of the stages. Be sure to include anything that may extend painting time: Is the job interior or exterior? How many crew members do you need? Do you have to move furniture? Wall repairs? Multiple colours? Do you have to come back the next day because the first coat didn’t dry in time to apply the second coat? All are important considerations when calculating labour.

Also, be prepared to add or subtract labour charges. For example, some clients know exactly what they want. In fact, they may have already picked their colours and sheen, as well as purchased the paint. On the other hand, other clients may only have a vague idea. Clients like these need your professional guidance — and Behr is here to support you with our professional colour tools and services.

Make certain you include your hourly rate in the estimate for this extra service — accounting for time spent looking at paint chips, explaining the types of paint and their respective quality levels and costs, and taking more than one trip to the store to pick up paint samples. Chances are, you’ll have to adjust your estimate but the more accurate you are, the smoother and more profitable the job.

Overhead

Overhead consists of the actual, ongoing cost of doing business, including gas, vehicle maintenance, reusable tools and equipment, administrative support, facility expenses, marketing, and business insurance. These expenditures tend to be consistent, although others — such as utilities — can vary month to month.

Overhead costs will help you determine a job’s profitability. While they aren’t billed directly to clients, contractors may fold these costs in to boost revenue, reduce overhead costs to save money — or a combination of both! If you need to more information about calculating overhead, find out more here.

So, what do you do when competitors present a low bid you can’t match?

• Highlight your strengths that make you a trusted professional — such as years in business; your and your crew’s level of training and experience; affiliation with industry organizations, professional certifications, proof of licensing and bonding, as well as positive client testimonials/client referrals (even better if clients are willing to be contacted). Providing information clients care about makes them feel at ease in choosing you for the job and boosts their confidence in you.

• Present your bid in person, not via e-mail. Few things make a better impression than taking the time to physically deliver your bid. It allows you to have a face-to-face discussion with your client about the bid. Ask how they feel about it and see if you can secure the job in person. In addition, it tells your client that you are invested and that you care about them and their painting needs — something an email may not fully convey.

• Smart follow-up — Following the bid, paint professionals typically contact a prospect a week or so later. Yet, if there’s no response, they simply move on. Don’t be discouraged if jobs don’t fall into your lap. Reality is that — when it comes to more dramatic renovations — homeowners need more time (sometimes a year or more) to move forward. Therefore, consider touching base with those clients (via their preferred platform) every six months or so. You may find out that they’re ready to move forward with their project.