Two very different clients with the same problem. One did custom chroming for antique cars, and the other was a small law firm in downtown Toronto. Both quoted work but failed to track actual labor and material cost resulting in significant financial challenges.
We suspected the chrome shop estimators had no real method for estimating work and proved it by having everyone quote on six very different pieces of work based on size and complexity. The first estimator offered a quote of $300 to restore an antique radiator grill. The owner was shocked, “I cannot even take it apart for $300” with the estimator replying “oh ya, you have to take it apart.”
The lawyers did not fare any better with estimated hours ranging from 20-50% over the standard amongst the group resulting in a wildly fluctuating line of credit.
Developed and implemented an estimating methodology and reporting process to ensure profitable margins on all jobs.
Robust estimating and reporting methods providing visibility and assurance on profitability by the project and legal matter.
If you do not know your labor, material, equipment and other costs – how will you know your margin and ensure profitability?