the spreadsheet that gave such low materials numbers.
By seeing the results of the survey, the estimator got a big
reality check and will take another look at their estimating procedures and calculations.
Similarly, you can study the survey results and compare them to how you would price the same jobs. If you
haven’t already, download the same bid package used by
all the bidders to see the exact specifications they went by
ing/files/prisrv17.pdf). Pay close attention to calculations
for materials and time, numbers that seem to vex many
shops. Compare your shop rate. W hen’s the last time you
actually figured your loaded hourly rate based on current
overhead costs? Maybe it’s time to take it up a notch.
Finally, put yourself in your customers’ shoes. What
would you think if you were faced with bids from compet-
ing shops that varied as much as these do? How could you
choose the best shop to do your work? Is the lowest bid a
real deal or a huge mistake? Does the high bid a reflect pre-
mium work or just a bloated price that will help the shop
owner make his next boat payment?
Now, look at it from your side of the desk. Are you
low-balling prices to get work in a market that actually will pay a lot more? Are you routinely screwing up
estimates by not keeping track of real materials and
labor costs? Are you sure your prices always account
for costs, including all of your overhead, and still
give you a fair profit margin? Are you content to bid
jobs with just a tape measure when we know today’s
custom cabinetry is lots more complex than some
average price per foot? ❮
Available in 2 x 12, 2 x 8, or 4 x 8
CROSSCUT SOLUTIONS, Inc.
E5763 COUNTY RD B, MANAWA, WI 54949
PHONE (920) 596-2330 FAX (920) 596-2324
e-mail: firstname.lastname@example.org | crosscutsolutionsinc.com
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