From 5 Hours to 30 Minutes: Fixing Estimates for Real Growth

Building an estimating database isn’t what people think of when I say I’m a content strategist. They think “dazzling marketing content segments” and “social media videos that go viral”!

That’s marketing – which I can do and have done and am decent at – and social media marketing? I’m taking three classes right now and getting better. But honestly, building elegant systems that free up your time? That’s where I shine.

The Unexpected Side of Content Strategy

The definition of content as I use it is: the principal substance (such as written matter, illustrations, or music) offered by a website or shared medium. This shared medium is sometimes a server, especially if we’re talking about company operations content.

But today, I want to discuss the yawn-inducing, pencil-biting topic of an estimate database. I’ve built estimate databases for every area of construction except civil, and for several service industries. My superpower is this: I can see patterns and correct the flow.

The Estimating Problem Everyone Has

When I talk to a lot of service contractors – those who work in construction but on the “fixing” side of things – almost every single one of them struggles with the same thing: getting estimates out on time.

The reason is simple. There are so many variables, it’s hard to easily break down the steps in order to create the estimate.

I looooove hearing, “Little Lady, it’s not as easy to create something to make this simpler.”

Look, sir. I haven’t been doing exactly that for the past two decades so you can tell me I don’t know what I’m talking about.

It is complicated? Yes.

Is it impossible?

No.

Hot Tub Trouble: A Real Example

So, you get the call. Someone went to the State Fair and bought a hot tub. Now, they need to add it to their home. It’s a simple thing. They’ve already done the heavy lifting for you. Now, you “just have to hook it up.”

You and I both know it’s not that simple, so you schedule a visit. You talk to the owner. You take photos and measurements. When you look at it, though, you realize that this is going to cost a lot more than your client anticipated. The meter is an old Federal Pacific. Not only is it “outlawed”, you can’t get replacement parts to include the new breaker. So, now you need to do a meter swap on top of adding the breaker. And the hot tub location is a lot further than he mentioned on the phone. You let your customer know all this, and he’s disappointed. He even mentions how his nephew is an electrician and said he could get him a really great deal on a disconnect.

You’re glad for him, and promise to get him the estimate by the end of the week.

However, back at the office, you realize that this estimate isn’t as simple as it looked even when you were on site. You’re breaking it down and the list of materials keeps getting longer as you sketch this out. Five hours later, you’ve created an estimate that covers everything – except for material procurement and drive time because those always get missed on more complicated service call estimates – and you feel pretty good when it’s accepted two weeks later.

Introducing the 30 Minute Estimate

Look, when you’ve been building estimate – even service estimates – for as long as I have, you begin to realize that an estimate is just a bucket of money. Your job is to make sure that bucket is big enough to cover the job so you’re not paying the client for the opportunity to work. You also need to stay competitive and fair, so you don’t want it to be too high either.

That’s where an estimating database comes in.

What is an estimating database?  

It’s just what is sounds like. It’s a collection of material dollars and labor hours attached to tasks so that you can choose the task, add it to your estimate, and quickly and efficiently provide your client with an estimate for the time and money it should take for you to perform the work.

Imagine being able to stand in front of your client while doing the walkthrough and providing the estimate while you were talking. You’d have probably walked away with an approval, even though is nephew could have have saved him $20 on that disconnect.

The Power of Pre-Built Assemblies

The trick is to create “general” activities with average materials and labor. You know generally how much LT you need, that you need an outdoor rated disconnect and receptacle, and you need the connection to the tub – which, btw – will be a separate service call while the tub is being installed.

Set the standard parameters for that.

What are typical lengths in your area?

Do you typically need to trench over or do you have a lot of covered decks you can run under?

Create your typical assemblies for the each part of this project.

1.  Standard hot tub electrical hook up

2. Conduit and wire by foot

3. Standard 100A meter swap

With those three items, you have your estimate. Just include a standard term that states that if anything pops up that you weren’t able to see, you have to charge them extra for at your billable service rate, and state you’ll let them know before you proceed.

Because sometimes swapping out those old Federal Republic meters is simple, but sometimes it’s a $@#%show.

But What About Material Take-Offs?

Here’s the thing that drives most field guys nuts. They want to take that estimate and dump it right into a material order. When you build estimates this way, you can no longer do that.

That makes this a really dumb idea, right?

Wrong!

Not every estimate converts. Unless you’re the only person in town that does what you do.

Clients shop for the best estimate.

They look for information so they can set up a budget.

They try to figure out if they can hire it out before deciding to try it on their own. And then, well, it’s usually a bigger mess that now costs more, but they tried!  

With that said, for every 5 estimates, maybe only 1 will convert into a job.

Let’s Do the Math: Real Cost of Estimates

Let’s say that each estimate takes you about 4 hours to do. That includes driving there, taking pictures, talking with the client, coming back, downloading your pictures, putting together your notes, compiling your price, and then putting the estimate together to send it out. It takes even longer if you wait a week or two to sit down and do this. Keep that in mind.

Now, let’s say you’re doing 5 estimates a week because you’re pretty small but growing. That’s 20 hours a week.

If you’re making $50/ hour, that’s $1,000 a week you’re spending just trying to get more business. That doesn’t include fuel or software. That’s just your time.

Let’s turn this around.

Now that you’re doing database estimates that are more general, the estimates are taking 1 hour. For 5 estimates, that’s $250/week you’re spending trying to get more business.

When that one estimate converts, you take the time and do the full take-off to get your material order, and now you’ve only spent $250 to get new work and $100 to put the job together.

You save $650/week, and you can either chase more work or spend time with your family and friends.

Software You Can Actually Use

I’ve been in all kinds of software to build estimates. I’ve been in Accubid, Connest, Service Titan, Pricebook, Jobber, Housecall Pro, Service Fusion, a few others I can’t remember, and… Excel.

Yes. I’ve created many, many, many estimate workbooks in Excel, especially if you’re a specialty service or you’re starting off very small.

Most of these databases are expensive with huge monthly fees, but there’s a reason for this.

Without good estimates to convert into jobs, your business doesn’t exist.

You can only shake so many hands and win bids with a smile or a spunky attitude for so long. Eventually, even the Good Ol’ Boy code stops working – unless you’re the only service provider in town. Then, in that case, keep on doing what you’re doing. You’re set.

How to Start Your Own Estimate Fix

Look at your own metrics. You have past jobs.

Are you tracking your materials by job? Quickbooks allows that… kind of.

Are you tracking your hours by job?

How’s your truck stock?

How’s your warehouse stock?

How many material trips do you typically make per job?

Look, seriously. When you start creating your estimating database, you’ll begin making the entire process more efficient. You’ll start planning more. You’ll be tracking more. And you’ll work yourself toward growth that is sustainable, repeatable, and efficient.

“Frankie built my estimating database and now I can get estimates out in minutes instead of hours.”
— An Electrician Who Stopped Losing His Weekends

Need an estimate database that actually works?
I help contractors and service pros build smart, repeatable systems that make growth possible without burning out.
Want to talk about your estimate problem? Let’s chat.