The Estimator's Edge
You're probably underpricing by 15-20%. Here's why.
Most contractors lose money not because they're bad at their trade—but because they're bad at estimating.
The math mistakes costing you $20K-$100K+ per year:
- Confusing markup with margin (20% markup ≠ 20% profit)
- Using "10% overhead" when yours is actually 25-35%
- Forgetting labor burden (add 35%+ to hourly wages)
- Missing the 27 hidden costs in every project
- Not knowing your break-even point
One contractor's story:
Kitchen remodel bid: $24,000 (used 20% markup on $20,000 cost)
Actual margin: 16.67% (not 20%)
What he should have charged: $25,000 (for true 20% margin)
Multiply that $1,000 gap by 25 jobs per year = $25,000 left on the table.
And that's just ONE mistake.
The Industry Reality
96% of construction companies fail within 10 years
Only 31% of projects come within 10% of budget (industry average)
69% of projects exceed their budgets
Accuracy levels by experience:
- Entry-level: <80% accuracy (20%+ overruns)
- Experienced: 80-85% accuracy
- Top performers: 90-95% accuracy
- Elite: 95%+ accuracy
The gap between 80% and 95% accuracy at $500K revenue = $75,000 more profit annually.
What's Inside (17 Chapters)
PART ONE: Psychology of Pricing
- Why contractors chronically underprice (6 cognitive traps)
- The math most contractors get wrong (with conversion tables)
- The true cost of inaccurate estimates (direct + opportunity + stress)
- Industry benchmarks: where you actually stand
PART TWO: The Estimating System
- Smart Bid Calculator (6-component system)
- The "27 Hidden Costs" checklist (stop missing money)
- Overhead allocation methods that actually work
- Trade-specific estimating guides (10 trades covered)
- The accuracy feedback loop (how to improve systematically)
PART THREE: Advanced Pricing Strategies
- Value-based pricing (charge for value, not just cost)
- Three-tier pricing psychology (why it works)
- Risk assessment and contingency (AACE standards)
- Proposal presentation that wins bids
PART FOUR: Implementation & Systems
- Technology stack by business size
- Team training and adoption
- Weekly and monthly discipline
- KPIs and performance tracking
PART FIVE: Real-World Application
- 10 detailed case studies (real contractors, real money)
- From 70% to 95% accuracy in 18 months (documented)
- Premium positioning success stories
- Scope creep disasters and how to prevent them
Trade-Specific Guides Included
Detailed estimating frameworks for:
- Carpentry and Millwork (priority guide)
- Electrical
- Plumbing
- HVAC
- Concrete
- Roofing
- Painting
- Drywall
- Flooring and Tile
- General Contracting
Each includes: production rates, material waste factors, labor burden calculations, and common mistakes.
The Smart Bid Calculator System
Component 1: Project Scope Definition
- What's included (specifically)
- What's excluded (explicitly)
- Assumptions documented
Component 2: Direct Cost Calculation
- Materials (including waste factor)
- Labor hours × TRUE labor cost
- Subcontractors
- Equipment and permits
Component 3: The 27 Hidden Costs Checklist
- Fuel and travel allocation
- Tool wear and replacement
- Insurance allocation
- Permit fees
- Disposal costs
- And 22 more...
Component 4: Overhead Allocation
- Percentage method vs. hourly method
- Your actual overhead (not the 10% myth)
- Seasonal adjustments
Component 5: Profit Margin Application
- Correct formula: Cost ÷ (1 - Margin%)
- Risk-adjusted pricing
- Value-based premiums
Component 6: Final Price Presentation
- Three-tier options
- Proposal psychology
- Objection handling
What This System Delivers
Within 30 Days:
- True overhead calculated (prepare for surprise)
- Bid tracking system active
- First estimates using complete system
Within 90 Days:
- Variance tracking revealing patterns
- Accuracy improving measurably
- Profit margins increasing
Within 18 Months:
- 95%+ estimating accuracy achievable
- $20K-$100K+ additional profit captured
- Pricing confidence transformed
The Investment
$247(Value!) — Pays for itself on your next estimate.
What you get:
- Complete 50,000+ word guide (PDF)
- 17 chapters from psychology to scale
- Smart Bid Calculator template
- 27 Hidden Costs checklist
- Trade-specific estimating guides (10 trades)
- Bid tracking spreadsheet
- 10 detailed case studies
- Markup vs. margin conversion tables
Ready to Stop Leaving Money on the Table?
The complete estimating system that transforms pricing from guesswork to science. 50,000+ words. 17 chapters. Smart Bid Calculator. 10 case studies. Trade-specific guides.