Costing up a job isn’t easy as there are so many variables to consider; particularly for new businesses or if you’ve started taking on different kinds of work. We can help! Job costing is just one of the topics covered in our series of business guides which tackle subjects relating to the trades, offering sound, practical advice, for free.
We can help!
Job costing is just one of the topics covered in our series of business guides which tackle subjects relating to the trades, offering sound, practical advice, for free.
Job Costing guide – what’s covered:
How Much and How Long?
The Job Pricing guide examines in detail the key considerations involved in putting together a realistic quote; offering advice on how to keep on top of things so that you can better manage your time and cash flow – focusing your efforts on making a profit.
Key considerations covered include:
- Labour – make sure you allow for extras like travel, tidying up, buying in specialist help from other sub-contractors and remedial tasks.
- Materials – keep accurate records of money spent on materials, including delivery costs. Managing cash flow will be easier if you can get a deposit from your customer and an account with local suppliers.
- Overheads – don’t forget to factor in the expense of running and maintaining your van and equipment, or the cost of your phone and other things like accountancy fees, training, marketing and insurance.
Estimating and Quoting
How long will a job take? This is the tricky part. It’s hard to foresee all eventualities, but getting a realistic sense of what’s involved will become easier as you gain experience and if you’ve done a full site survey. The guide offers tips, such as measuring up carefully and trying to break the job down into it’s various parts so that you don’t end up out of pocket.
Preparing a Quote
Making a site visit is a good way to start. It’s a chance for you and your customer to meet and a great opportunity to make a good impression. You can discuss the details of the job in hand and get a sense of what’s required. The guide suggests you take care to look at the site so that you can forecast and any potential problems that might effect the time you’ll need to spend.
Customers prefer to work to a quote rather than an estimate these days; taking the time to prepare a professional looking document listing the elements of the job and materials involved will make a real impact. Our Job Costing guide offers tips on how to write up and present a comprehensive quote that forms the basis of the job in hand.
With other helpful tips on how to cost your labour and use technology to take the grind out of daily admin – we recommend the Smarttrade app – as well as advice on not selling yourself short, our Job Pricing guide is not to be missed.
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