Please Help With Estimate

[stefvell 14]

Ok. So I have eight neighbors with adjoining fences that want their new fences stained. My plan of action is to just low pressure rinse the wood with light surfactant as it is pressure treated and very clean already. They also want decks cleaned brightened and stained. I want to use Ready Seal but will give them the option to chose a 3 year seal product if they ask. Finally, I am using a magnum X5 airless and pad for application so I figure about 85 Linear feet per hours on the fences

I am figuring costs as follows:

Cost for 8 homes with decks

Fence 300 linear feet per house + 100 linear feet each for end homes =2600 linear feet x 6 feet high = 15,600 sq feet of fence

Deck 500 sq.ft each clean, brighten and stain = 4000 sq ft.

Stain Cost = $4000 (about 135 gallons)

Percarbonate Cleaner Cost=$50 per deck

Brightener Cost = $50 per deck

Total Cost for deck cleaning= $800

Gas Costs= $200

Equipment Costs= $300

$5500 Total Cost

14 days to completion

70 hours work Total

5 hours per day

The houses are only 1 mile from my house.

I need this business and these are important people to me because they are all local business owners with rich friends. I am thinking to charge $10,800 for the whole job. Just me no helpers.

My question is, am I estimating my chemical expenses properly based on you guys experience and am I estimating my Total Labor hours properly? Plus if i am totally forgetting something that could sting me in the ass please pour on the reality!

[PressurePros 249]

Two times your material cost is way too low, especially for this industry. With that being said, your material cost seems out of wack. Even using premium products your cost for stain and cleaners/brighteners will not exceed $.30 per s/f. Mark it up to $.35 and you'll be good to go on margin.

Another question is how you are measuring the decks. Are they 500 s.f for the floor only or including rails and spindles, steps etc? You obviously have to factor all the cost to figure your T&M.

Don't fall into the trap of "needing the work" or "this job will get me more work so I'll discount it". That's not how things work. I don't care if you scrub every inch with a toothbrush and treat every homeowner to a steak dinner. Its highly unlikely you'll get more work from it at this stage of the game for your company. If you do get referrals from an underpriced job, they will expect to pay your lower rate as well. You'll get busy, you'll make no money and you'll be out of business in a year. That is the way this plan ends up more often than not.

Looking at your numbers, $78 per hour for labor is a good start. I just think you have to get a better grasp on your operating costs.

[stefvell 14]

So you say .35 X 20,000 = $7,000. I dunno. I'll let you know how it turns out. Either way I will recoup my costs and make a little dough. The people know that I am new at this and want to give me a chance. I am going to let them know if my pricing needs to be adjusted for future jobs if I regret charging so little when all is said and done. Of course, they already know that I am giving them a very special price just because it is only my second job of this kind! Thanks for your comments though...they are helpful.

[PressurePros 249]

So you say .35 X 20,000 = $7,000. I dunno. I'll let you know how it turns out. Either way I will recoup my costs and make a little dough. The people know that I am new at this and want to give me a chance. I am going to let them know if my pricing needs to be adjusted for future jobs if I regret charging so little when all is said and done. Of course, they already know that I am giving them a very special price just because it is only my second job of this kind! Thanks for your comments though...they are helpful.

Clearer head this morning.. I looked at your numbers more closely. Your final numbers are not that far off. I was a bit thrown by your cost estimates for cleaning chems on the decks but everything else more or less adds up. Your time estimation might be a tad low for a guy new to wood resto and working solo.

Good luck, hope everything works out wll for you.

[Beth n Rod 1,279]

I need this business and these are important people to me because they are all local business owners with rich friends. I am thinking to charge $10,800 for the whole job. Just me no helpers.

Then my suggestion would be to get a helper. This is a perfect opportunity to train someone to do the work along side you and you will be that much further on the road to having an employee that can work on their own while you generate more business.

I hope you are not thinking you can have more money by doing it yourself. That is shortsighted in relation to your statement that you want to get more business.

Every step you make should be towards growing your business and reinvesting in it is part of the process. By hiring someone, you are investing in your business growth and promoting your ability to meet the demands you create. You may have less money in the beginning but trust me on this, it multiplies if you do it right.

We have been taught to answer when opportunity knocks but we haven't all learned the best way to respond. What we do can have an impact either positive or negative on our efforts in business. You have put a great deal of thought into the costs for your estimate and that is level headed thinking. Now, just follow through and take advantage of the opportunity to benefit from it more than just monetarily. More of that will come as you grow.

Balls in your court...will you just dribble it or will you shoot for a score?

You decide.

Rod!~