Quotes
What is the best way to figure up a quote were you are far but still making a profit
Forum Discussion
5 Replies
Hello there. This is a great question and I see this across multiple industries and professions. When you say, figure a quote and be "fair" but still make a profit, this brings up a great point. When something is considered "fair", it is generally seen as equally beneficial to both parties. Your business is a for profit business. It would be fair for you to make a reasonable profit. Reasonable profit in most businesses is thought to be in around 30% net after all other overheads and salaries are paid. It is important to provide a good value for your consumer or customer, but your first priority to you, your business, and your family, is your profit. The main idea here is this: first out what ALL of your costs are so that you know EVERY penny being spent. This is the only way that you can determine what your selling or providing price is to your customers. Read the book "Profit First".
Hello! If you're able to share a few more details and maybe an example of a scenario you've been in/are in that may be helpful. Thank you for asking the community!
I recently had a customer request a large amount of construction debris to be removed. I gave a quote I thought was fare due to the amount of trips to the landfill and it is at least an hour each direction
This is something you will need to figure out. Jobber or any tool cannot solve this. If you’re considering “your cost” you have to factor that into what ever quote you present. As another junk removal professional, I struggled a bit when I first started out. Just over a year later, I am still learning.
I have a better understanding of how to factor in drive time and dump fees. Those are your two factors you will always have to consider. To get more detailed, there are other factors, fuel, insurance, marketing, and other run the business costs.
My recommendation would be to come up with your hourly rate cost plus mileage cost (which is typically found online). Then you can upcharge that particular estimate to include those two components so that you are not taking a loss.
Reverse engineer it. Take a sample for a job you did that wasn’t charged enough and calculate what you would’ve needed to charge. Put that on a chart for that particular area.
i hope this helps!
