Exito Estimating

Saturday, December 28, 2024

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Exito Estimating: Your Path to Profits
If you’re a remodeler and don’t have $10,000 in the bank or $5,000 to invest in your business today, it’s time to face a harsh reality: your estimates are broken. This isn’t a client problem, a market problem, or an economic problem. The truth is, the way you’re pricing your jobs is holding you back, and it’s costing you not just money but your future.
I know that might sting a little. But before you click away, let me share two stories from my own journey that opened my eyes to just how flawed my estimating process was—and how fixing it transformed my business from barely surviving to truly thriving.

The First Wake-Up Call: Working for Wages
Years ago, I landed my first basement remodel. I was thrilled. This was my big break, or so I thought. Wanting to ensure I won the job, I quoted what I thought was a competitive price. The homeowner eagerly accepted, and I got to work.
Months later, I learned something shocking: most of my competitors were quoting nearly double what I had charged. DOUBLE. Why? Because I hadn’t accounted for all the expenses that a real business needs to survive. I wasn’t charging enough to cover overhead, secure a profit, or even ensure my future success.
Here’s the painful truth: I wasn’t running a business. I was working for wages. I had essentially made the homeowner my new boss, taking on all the risk and responsibility without leaving myself room for a “bonus” (aka profit) for a job well done. I wasn’t saving for retirement, taking vacations, or even affording sick days. I was operating unsustainably, and if I kept it up, I was never going to achieve the freedom and financial security I wanted.
I realized then that if I didn’t start pricing my jobs like a business owner instead of an employee, I was doomed to stay stuck in this cycle forever.

The Competitor’s Bid: Learning to Charge More
Fast forward a few years. I was presenting an estimate to a homeowner, feeling confident that my price was fair and reasonable. Then they hit me with this: “We’re going with another company. They’re more expensive, but we feel they’ll do a better job.”
I asked to see the competitor’s bid. Not only was it double my price, but they were charging $1,400 per window—for a product that cost less than $200 per opening. I did some research and found that this company was rebranding a distributor’s windows and marking them up massively. But the homeowners weren’t just paying for the windows; they were paying for something much more valuable: trust, convenience, and peace of mind.
This competitor had a system. They had an estimator, a project manager, an office team, and a comprehensive warranty. They made the homeowner feel taken care of at every step. The homeowners saw them as the safer, more professional option—and they were willing to pay a premium for that.
Meanwhile, my business couldn’t offer the same level of service because I wasn’t charging enough to afford those resources. That was the moment I realized my fear of charging more was costing me clients, profits, and the ability to grow my business.

The Hard Truth About Your Estimates
If you’re still afraid to charge more, here’s what you need to understand:
You’re not running a business; you’re running yourself into the ground. When you don’t account for overhead, profit, and future growth, you’re just working for wages.
Cheap pricing attracts the wrong clients. These are the clients who nickel-and-dime you, complain about everything, and don’t leave referrals. High-value clients aren’t looking for the cheapest contractor—they’re looking for the most professional one.
If you’re not pricing for profit, you’re not just hurting yourself—you’re hurting your clients. You can’t deliver your best work when you’re cutting corners to save costs. And clients know it.

How to Fix Your Estimates
So, how do you fix a broken estimating process? It starts with understanding your numbers and overcoming the fear of charging what you’re worth. Here’s what you need to do:
Know Your Costs Every expense—materials, labor, insurance, marketing, gas—needs to be accounted for. If you’re not tracking these, you’re setting yourself up for failure.
Build in Profit Profit isn’t what’s left over after the bills are paid; it’s a non-negotiable part of your pricing. Decide on your profit margin—20%, 30%, or more—and include it in every estimate.
Charge for Designs Stop giving away free estimates. Charging for designs filters out tire-kickers and positions you as a professional. Clients will value your time and expertise more when you value it yourself.
Communicate Value, Not Price Sell your process, your guarantees, and the peace of mind you bring to the table. High-paying clients aren’t just buying your work—they’re buying the experience of working with you.

The Transformation: Exito Estimating
At The Remodeling Academy, we created Exito Estimating: Your Path to Profits to teach remodelers like you how to estimate properly and build a sustainable, profitable business. This isn’t just about numbers—it’s about transforming how you think about pricing, value, and your future.
In this program, you’ll learn how to:
Create estimates that cover all your costs, including overhead and profit.
Offer a better client experience that justifies higher prices.
Stop underpricing yourself and start building a real business.

Ready to Take the Next Step?
If you’re serious about being great, it’s time to take action. Apply today to join The Remodeling Academy’s Renegade Remodeler Affiliate Program. This isn’t just about estimating—it’s about transforming your life and your business.
Stop wondering if you can afford it. Instead, ask yourself, How do I make this happen? Because the moment you commit to learning, investing, and growing is the moment everything changes.
Don’t wait. See if you have what it takes to be great. Apply now, and let’s get started on your path to profits.
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