Let’s be real — estimating is part math, part experience, and part art. But too often, contractors fall into the trap of relying too heavily on memory, gut feel, or outdated pricing templates.

If your estimates aren’t grounded in real cost data — labor rates, production times, and current material costs — you’re setting yourself up for profit loss before the job even starts.

Small mistakes in estimating compound over time. Underestimate labor by 5 hours per job across 40 jobs? That’s 200 unpaid hours — potentially $10,000 or more in lost gross profit.

Real World Mistake & Lesson: I had a client whose estimator had been using the same spreadsheet for 3 years. It looked slick, but the labor rates were outdated, and the production times hadn’t been reviewed in ages. We updated their estimating system to pull in actual job data and reviewed post-job gross margins. The difference was night and day.

Their hit rate on profitable jobs went up, and they stopped underpricing work just to win it. Win rates didn’t drop — they just started winning the right jobs.

 Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com