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Plumbers need to get the hang of performing job estimates from the very beginning. One mistake the novice plumber always makes is underestimating the cost of a job and finding they barely breakeven when they’re finished. This is a mistake that must be rectified if you’re going to run a successful plumbing business.
We explore the various rituals you have to go through to get an accurate estimate for a job.
Understand the Estimate
The estimate is just that, it’s an estimate. Most customers will expect this quote to be what they end up paying, though. Since arguing with a customer about why the bill has gone up is fruitless, plumbers tend to inflate their estimate in the beginning to make sure they get a reasonable profit.
You shouldn’t feel bad about this. It’s only protecting your interests. You’re not working for a charity.
Visit the Job
Never rely on a customer to supply accurate information about the scale of a job. Visit the scene of the problem and measure everything. If possible, take some pictures that you can refer back to later on.
By visiting the job, you can put your knowledge into the estimate. You aren’t relying on second-hand information gleaned from someone who’s wholly unqualified.
Parts and Labor
You should have an idea as to how much the parts are going to cost. This is where having a good supplier comes in handy. Have a price list in the back of your truck to get a rough idea as to how much you can expect to pay for the parts.
Labor costs are tricky because it varies from state to state. Get in touch with some of your other plumber comrades and discuss with them what you should be charging for labor. It shouldn’t be anywhere near your state’s minimum wage, though.
As a rule of thumb, your final profit should be enough to live on comfortably. Never inflate the cost of the parts. Your labor should be seen as your final profit maker.
Your Other Costs
Think about the other costs involved in running your business. This could involve the licensing fees, any additional taxes you have to pay, and basic running costs like fuel and new tools. These costs need to be covered by the final bill.
Competitive Marketing
Never enter a bidding war with another plumber for the right to complete a job. By all means, offer the occasional discount if it’s a big job, but don’t sell yourself for less than your worth just to stick it to a competitor.
The chances are if someone is charging a criminally low price they’ll be out of business within the next 12 months. Don’t concern yourself with what they’re doing if you’re in it for the long haul.
Get an idea for what other plumbers are charging by calling them up and asking for a quote for a certain job. Ask your family and friends how much they paid for their plumbers. Know your market and you’ll have a reasonable idea for what you should be charging.
Author Bio Box:
Chase Cullen, the author, is a freelance writer and a passionate blogger. He writes on topics that he finds engaging. He suggests ABC’s plumbing service to his readers who are having issues with their plumbing system.
Shared by Don Zilleri
BidsByPros.com Moderator
Don Zilleri is an author and researcher. He is specialized in business marketing, development and is a small business owner. He learns as he writes by researching and interviewing experts and professionals in many categories and topics. Join him in Facebook and become part of his pro network in LinkedIn All Don Zilleri's article's authored exclusively for BidsByPros.com All rights reserved. If sharing, credit Bids By Pros in article source.
