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Review Estimate Analysis

5:16
20:56
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At 5:16 in

How the Big companies always make money on their lawn care pricing

What happens here

After all services, labor, and equipment are entered, navigate to the 'Analysis' tab. This section provides a detailed breakdown of the estimate, including 'Cost Summary' (Price, COGS, Gross Profit, Overhead, Breakeven, Net Profit), 'Cost Ratios' (Labor, Equipment, Material, Subs, Overhead, Profit), and 'Profit Summary' (Gross Profit, Net Profit). Additionally, it shows 'Budget Gross Profit V. Estimate', 'Budget Net Profit V. Estimate', and 'Budget vs. Estimate Performance' with 'Budget Revenue/Hour' and 'Estimate Revenue/Hour'. This allows for a comprehensive review of the financial health of the proposed estimate.

Goal: Analyze the financial aspects and profitability of the estimate.

Tools and materials

  • LMN Estimating Software LMN — Viewing financial analysis and profitability reports

What they say

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on what their cost per visit is what their break even is after they've covered their overhead costs and then what the profit is to the customer so their break even in this case is 66.90 where do you come up with these numbers where where are we is it being generated from the um the templates mark or how are we figuring out the break even because that's that's different for everybody it is and that's why we always recommend and the budgeting software is completely free but that's always why we recommend that you start using the software by building a budget um once you've built your budget in the system and we did cover that in an earlier video that allows all of these numbers to be unique to your company so that when you have a look at the analysis of a job you can really see your cost of doing business and your price to the customer and your profit because i think often contractors make the mistake of just kind of charging what everybody else charges and that may or may not be the right price for your company and when you sort of make those sort of guesses uh in terms of pricing what you're really doing is is guessing whether or not you're going to be profitable at the end of the year yeah and here if we um can we actually do real-time monitoring with this software mark where like after the guys mo we can punch in where they were at so we can know if we have to adjust our price up or down or where we're falling at right away instead of going through a whole season going wait a minute i should have made 9.8 but really i'm making 3.4 what's going on where if you can adjust it right out of the gate yeah you may lose a job if you got to raise your price but you're not working for free all year long is that a possibility it absolutely is a possibility and so what happens with our estimating software is it transfers into your time tracking software and you'll see here up top because we built the quote in the system it tells us that we've got 26 hours for this contract for the year for these 26 cuts so each time we stop in and do a cut we're going to clock in and out so any time throughout the year we can look and see how many hours we've spent on each project and we can also see if we're on track to make a profit because you know if i if i roll up here to my analysis tab and i click analysis this kind of breaks the job down for me and it says some pretty interesting things first off it tells me that this estimate is going to produce 74 dollars an hour in…

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