ECN Forum Forums General Topics of the Trade Business Related Discussion Did I estimate too much?

I must apologize for not watching this thread as it developed.


Losing a bid is always a touchy subject. Part of it is the uncertainty- did the two of you bid on the same thing? Can you really save that much by cutting corners? Etc.

Just giving the OP a quick look, and not knowing the exact site conditions, I see a 4 day job. I'd plan for a week. If I had a helper, it might be cut to three days. So, the original estimate is realistic.

Now, if I ran the job using a pair of practiced apprentices, and cut a few corners (no running boards, tie into existing circuits, no permit, etc.) I can see where the lower price is possible.

This brings us to the heart of the bidding game.
Let's assume, for the sake of discussion, that you make an exact guess. That is, you estimate your cost to be $1000, and the job costs you $1000. Bidding $1000 really has you taking a gamble.

You gamble, first, that there will be no nasty surprises. Like the block wall that turns out to be cement filled, and takes 4 hours to pierce - not the 30 minutes you estimated. Or that someone won't track roof tar across the carpet.
You are also gambling that there will be changes ... an opportunity to fix any errors in your first price. You are assuming that the customer will automatically turn to you for additional work.

Sure, there's a role for preparation. I show up at a house, I don't have a foot of Romex with me ... it's not my usual type of work. So, I have to go shopping. Another guy, who does residential all the time, might have everything already with him. Doom on me!

When you bid, it's not enough that you know the trade, and the market. You need to know your competition.
If you're competing against a handyman, a guy running his new business off his kitchen table, and a homeowner considering a little DIY .... it will be very hard to make money.
On the other hand, if the job requires skills and equipment that only two or three guys have - and the others are busy - you can relax some.

That's why you have to see the bid as an opportunity to set yourself apart from the pack. It's not just price ... it's a chance to show what you can do better than the other guy. You've got to get their eyes off that bottom line!