Estimating, Markup & PricingThe Trinity of Profitability
The “Trinity of Profitability”
If you’re just starting out as a contractor and are looking for basic estimating help or an experienced mid-sized contractor looking to really buckle down and improve your ability to hit your company’s profit goals understanding that Estimating Markup and Pricing make up a “Trinity of Profitiablity” is key.
Estimating, Markup and Pricing while intimately related are not the same thing. But they do all combine and work together to make up the “Trinity of Profitability”.
Estimating at it’s core is for the most part a process of counting or Taking Off ‘bricks & mortar’ and the gauging the labor requirements to place or install those items.
Markup is the science of what you need to apply to those numbers to cover your Fixed and Variable Overhead costs while generating a decent and respectable Net Profit to nurture and grow your company.
Pricing goes beyond markup to the process of identifying the “Value Added ” a product or service you provide delivers and attaching an appropriate premium to the marked up costs of that service-product.
You Can Hire Us To Analyze Your Company's Estimating Markup & Pricing Methodologies
We Offer a Complimentary Initial Consultation:
In our initial meeting we learn more about you and your specific goals and desires. We explain our programs and together we determine which ones might be appropriate for you. If we decide to work together, we will provide you with a proposal outlining our fees and services and you’ll provide us with a small retainer to begin working on your project.