Bidding a job can make or break your business. Get it right, and you profit. Get it wrong, and you’re working for free.
Here are three ways contractors mess up bids – without even realizing it.
1. Guessing on Labor
Labor is the biggest cost on most jobs. But too many contractors just guess how long it’ll take.
Fix it:
Look at past jobs. Track how long tasks really take. Use that info next time.
2. Forgetting Overhead
Gas, insurance, phone, office — it all adds up. If you’re not building overhead into your bids, you’re losing money.
Fix it:
Add a percentage for overhead to every bid. Even a small bump can cover your real costs.
3. Cutting Too Close
You want to win the job, so you go low. Too low. Now the job’s yours – but you can’t make a dime.
Fix it:
Price the job to make money. The right clients care about quality and trust – not just the lowest price.
Bottom line:
A good bid isn’t the cheapest – it’s the one that gets the job done right and pays you what you’re worth.