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Step-by-Step: Creating Profitable Estimates for Clients

Crafting a profitable estimate is one of the most critical steps for any home service professional. At ResiPros, we believe that billing by the hour is not only a poor strategy for your business but also rarely fosters a healthy relationship with clients. Instead, building fixed-price, detailed estimates ensures transparency, builds trust, and sets your business up for sustainable success. Before you read on, make sure you’ve run your numbers and set realistic goals from 3 Business Goals Every Home Service Pro Should Make in January.

Before we get into crafting profitabl estimates let’s establish why we believe hourly billing isn’t a good strategy to build a healthy business.

Why Billing by the Hour Isn’t a Good Strategy

  1. Uncertainty for clients
    • Hourly rates create unpredictability for your clients. They don’t know the final cost until the job is complete, which can lead to disputes and frustration if the bill exceeds expectations.
  2. Difficulty in accurate estimation
    • Estimating the exact number of hours for a job is challenging, especially when unforeseen issues arise. This can result in either undercharging or losing client trust if hours increase significantly.
  3. Defensive environment
    • Hourly billing often shifts the focus to time spent rather than the quality and value of work delivered. This fosters a defensive environment where clients scrutinize every minute rather than appreciating the results.
  4. Limits your earning potential
    • Your income is capped by the number of hours you can work in a day, regardless of the value you bring to the table. Fixed-price estimates allow you to scale your income by reflecting the true worth of your services.

The ResiPros Approach to Profitable Estimates

A detailed, fixed-price estimate not only includes time and materials but also accounts for your business overhead and financial goals. Here’s how to create one step-by-step:

  1. Evaluate your business overhead
  2. Walk through & simulate the job
    • Schedule time to visit the property.
    • Ask for permission then take many pictures and notes.
  3. Calculate the cost to do the job
    • Walk through the work mentally or on paper to list all materials needed and the effort required. Be as thorough as possible to avoid surprises later. When in doubt give the client a call to do a second walk through of the property.
    • Combine the costs of supplies, materials and labor (priced as a fixed line item rather than hours).
  4. Factor in overhead
    • Add in a proportional overhead-per-job figure to the subtotal to ensure the estimate covers the cost of running your business. Does this job have greater risks than others? Factor it in.
  5. Build transparency into your estimate
    • Clients appreciate detailed breakdowns. Include line items for materials, labor (as a fixed cost, not hours), and even warranty or contingency costs. Transparency builds trust and helps justify variations in pricing when they compare estimates.
  6. Create and deliver your estimate with ResiPros.com
    • With ResiPros.com, creating an estimate is simple. Enter the client’s name, address, email address, and a description of the work. Add one or more line items detailing costs, and you’re ready to send. Clients can review and approve the estimate online, often within seconds.

Benefits of Using ResiPros for Estimating

Final Thoughts

By transitioning from hourly billing to fixed-price, detailed estimates, you can provide clients with clarity, build trust, and set your business up for long-term success. ResiPros.com simplifies the process, allowing you to focus on delivering exceptional work while we handle the back-end organization. Start crafting profitable estimates today and watch your business thrive.

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