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Delegating Pricing & Estimating

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Old 07-01-2015, 03:44 PM   #1
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Delegating Pricing & Estimating

One of the biggest barriers to growth of a small business that I've seen is the ability or inability of an owner to delegate pricing. For example, a friend of mine owns a specialty company and has significant revenues. He works 12-16 hour days. He does all estimating on top of everthing else that is required to run the business. I feel that if he could delegate the pricing of jobs, he could focus on developing systems to improve his process.

That being said, his biggest fear is someone not being diligent enough in their work when pricing a job. This is completely understandable as pricing is your lifeblood. What kind of system can you create to ensure pricing is Delegated and done correctly?

The only idea I had was using a multi-tiered employee system where the estimator is responsible for pricing and the Owner\senior estimator is responsible for the estimator. (mentoring, checking, I guess thats how most other companies do it.) Seems that training the estimator on their responsibilities would be the most critical task. Micromanaging until you're comfortable with their work product and then verifying their work on an as needed basis. Large\risky investment that could have significant rewards.

1. Standard method.
2. Training on method.
3. Production.
4. Quality Control / process improvement.

Any thoughts?
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Old 07-01-2015, 05:29 PM   #2
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Re: Delegating Pricing & Estimating

Alternative thought ....

Has nothing to do with method. Has everything to do with the owner giving up control. Let's face it deep down inside he likes it that way. OR better he has no goal, worthy goal or attainable goal that is greater than his desire to own, of all this 'chit'.

Running funny statement among me and the advisers....

Wearing all or too many hats is equivalent to donning the fedora of @ss hats.

My fedora has a very special aroma Just can't place the smell. Kind of like freshly sawn red oak, but a bit more pungent.


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Old 07-01-2015, 05:58 PM   #3
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Re: Delegating Pricing & Estimating

This is probably a person who fears it getting done wrong and losing his shirt.

If you can't write your estimating and pricing system down on paper so that someone can be trained to do it reliably, you don't have a system, you just have an owner/estimator.
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Old 07-01-2015, 06:02 PM   #4
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Re: Delegating Pricing & Estimating

Estimating should always be reviewed to see how the estimate matched up with final on every project.
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Old 07-01-2015, 08:52 PM   #5
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Re: Delegating Pricing & Estimating

I think the basic material and operating costs are easy. One of the reasons ive never hired an outside sales rep that didnt have true work experience in the field is estimating the man hours and risk. On an air sealing project i could do a 2500 ft attic in a day easy with smooth access while a 900 ft ranch takes 2 days crawling soldier style. Those details sre tough to calculate without being in the trenches.
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Old 07-01-2015, 09:35 PM   #6
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Re: Delegating Pricing & Estimating

How do you think all the larger companies do estimating?

Systems based on historical data and experiences of the estimator.

Most estimates get checked by a senior estimator/chief estimator/whatever.


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