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The Man Hour Quoting Framework 

As business owners, our ability to maximize profit determines the equipment we can purchase, how we expand our territory, and sets the boundaries for our family’s financial security, lifestyle, and retirement.

STICK WITH ME & FOLLOW THE LOGIC:

Profits:

To understand our profits; visibility into our business is critical, which means we must standardize how we do things. 

Time Is The Variable:

Time is constant, it’s our most valuable asset, and from a business perspective it’s an ideal variable on which we can place value. Even the most efficient – highly skilled crew is limited by time. Weather, the seasons, and daylite control when we work, how long we work and ultimately how many jobs we take.

Use This Free Template To Find Your Hourly Rate!

Examples of Immediate Benefits:

Visibility into your business shows you where to make changes and drive profits!

Tracking Quotes VS. Actual Jobs

Underquoting / bidding a job is brutal! We’ve all done it, a half day job took you longer than expected. Those big blunders are obvious, but let’s break down the less obvious mis-steps.

How Small Changes Make A Big Financial Difference

If we under quote a job by 30 minutes, what does that look like?  Let’s assume we are running a 4 man crew.  To keep it simple we have two climbers we pay $40/hr and two ground guys at $15/hr making our crew hourly wage $110.  We bill $120/hr for the climbers and we bill $40/hr for the ground guys for a total crew rate of $320/hr.

 

  • Accurate Quote: 4.5 hour = $1440
  • Under quoted: 4 hour = $1280
  • Difference quoted: = $160

So off the bat we’ve lost $160 – now lets add their wages for the extra half an hour $110 / 2= $55:  160 + 55 = $215.

Conclusion

It’s pretty easy to picture how quickly this stacks up to equal thousands of dollars, and it’s coming straight out of our profit! You need a good way to track how long your jobs are taking in relation to their estimated time.  If you aren’t currently tracking this, I hope you’re starting to think about it.

Understand Your Costs: Ever wonder how much leaving that rake cost?

Let’s assume we are running a 4 man crew.  To keep it simple we have two climbers we pay $40/hr and two ground guys at $15/hr making our crew hourly wage $110. Assume it takes the guy 30 minutes to go back to the shop and grab the rake, extending the wage time we owe the crew by 30 minutes. We lost $55.