How to Bid on Plumbing Jobs
In order to land the best jobs which can boost your income as well as increase your future clientele, you want to ensure you understand how to bid on jobs with estimates that are fair to the client while also being profitable for your company too.
Work Backwards for Estimates
In order to get the most accurate estimates for your bids, you want to work backwards. First of all, take into consideration the weekly wages for you or your team. This means the hourly wages, broken down for each 40-hour week per employee you have actively working.
After that has been established, factor in estimated travel time to and from the bid location. If the client is local, you won’t need to factor in as much time for travel as you would if the client was one or two towns away.
Now, consider your employee necessities. This includes coverage for insurance, taxes, employee breaks or vacations, and any retirement plans you may have with your employees through the company itself.
Don’t forget your overhead. This is often overlooked by smaller companies starting their first bids. Overhead includes the cost of your service vehicles and their upkeep, which includes licensing and vehicle insurance, as well as any smog testing if it’s required in your area.
Once all that has been factored in, add a 25% profit margin. Some companies may choose a larger or smaller profit, so if you are known for a certain profit bracket with your company, factor that in at this point.
Consider The Extra Factors
In addition to the above necessary factors, there are some extras which can come into play as well.
- Base your estimate on the site itself after inspection, not before.
- Consider providing a free service estimate to make a good impression.
- Don’t be afraid to offer extra related fixtures, without being pushy for a sale.
- Be aware of any needed permits in the service area before you make a bid.
- Estimate the hours for the job before placing your bid to ensure accuracy.
An on-site inspection is probably one of the most important factors in this extra section. This can be especially true when working on older buildings and plumbing fixtures, or when working in historical buildings that require very specific services and installed products.
One Estimate at a Time
Another important thing to keep in mind is to work with one bid at a time. While you may think that placing multiple bids and locking down a variety of jobs at once can be profitable, it can easily come back and bite you.
Thorough and detailed consultations with the client not only ensure you will be able to get the job done while still making a profit, but will also give the client the peace of mind they need knowing they are being paid attention to. This can go a very long way in building a strong client relationship, earning you repeat business in the future.