Replies

1. 
   bob k | Apr 18, 2008 11:56pm | #1

   Eric: I was an old school estimator for a custom exhibit company. Everything we designed was intentionally unique and hard to estimate. My experience there taught me a method that I still employ when pricing my furniture and it is surprisingly accurate. Simply stated, I walk myself mentally through the entire job, one day at a time. In other words, forget about hours, think instead about days and half-days. Be realistic and imagine what you will get done each day. Doing this helps you take into account the time required for set-ups, clean ups and f***-ups. It also gives you a goal to reach each day, so, if some step takes longer than you expected, to can deal with it by working a few extra hours right then and there and stay on track.

   When you are finished with your estimate, you will probably do what we all do, which is to realize that you had a target figure in your head all along, based on what you think the market will bear. Then, if the figure is lower than your estimate, you will either cave in and adjust your estimated number of days until it matches your target figure or you will stick to your guns and present the higher price to the customer. If you can sell quality, with the associated cost, and not just offer low price, you are on your way to success in this business. A customer who only wants the lowest bidder is not worth the effort.

   And don't forget to charge for the drawing, designing and delivery time, too, although I often will use free delivery and set-up as a way to bargain for the price I want.

   Good luck
   Bob