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If I can vary labor and material prices then I do not dismiss it. This is a capability I did not know it had. However, that does not then give credence to the program because I thought the whole point of xactimate was to price the way the adjusters price. Sure the line items may be the same, however the values will be different thus giving reason to argue. If we are goign to argue, why am I going to pay xactimate fees? Fruthermore as I said, I *think* I got ahold of a trial copy many years back. I am pretty sure it was xactimate but my memory has never been my best feature. I wasn't impressed... then again many it wasn't even xactimate.

Maybe I don't know what I am talking about... But the whole point is, we business people shouldn't be pricing our business based on what other people think we should charge, and that is my understanding of xactimate: using industry averages to determine job price. Am I wrong?
 
grumpy is that your spreadsheet for all roof jobs or do you use it only for insurance estimates?

i know ins co's like to see it broken down but most guys don't do that for homeowners unless they are asked.
I price every job using that spreadsheet. The only difference is the materials I input. So for this job, I had to price the job twice. Once for the real work to be done, as previously stated, and once for the insurance company "like replacement". It only takes 5 minutes to figure a materials list since I do hundreds of them every year.

I do it this way, because this is the ONLY way I have found to accurately predict my gross profit per job. Maybe there is another way, but I don't know. I know how much I will make on a job before the job even starts, and for the most part the P&L at the end of the job is pretty much in line with what is forecasted. When I used price lists just too much was lumped together. Some jobs I was way high and didn't get some I was kind of low and got but didn't make enough, but it was based on averages. Originally the spreadsheet was developed for the production manager and myself to check what the salesmen were selling.

It's also nice when you are talking about real numbers and a salesman undersells a job, uses the excuse we are too expensive, and you throw the spreadsheet in his face and say "tell me where I made a mistake." Too often these salesmen are pricing jobs based on what other people think we should charge... the "going rate".


Again I said in a previous thread that I do not show this spreadsheet to home owners, but will show it to insurance companies However I have shown it to home owners in the past. However only a select few and only if I thought it would get me the job. I also always pre-emp the showing of the spreadsheet with a question "how much do you think is fair for us to make on this job?" You'd be suprised how often times they say more than we are actually going to make. Then I show them how much we are going to make. My accountant always says "Numbers don't lie." This is the price, this is how I arrived at the price. Take it or leave it. That's only happened less than a handful number of times, and all but once it got me the job. Then again some people think $1,000 a day is just way way too much and have this idea I am making a quarter million a year (I wish!!!), like it's all going in my pocket or something. Those are the kinds of people I typically don't target in my marketing... but really very very very few people do I ever discuss actual nitty gritty numbers. Most people can honestly care less how many boxes of nails I need to buy.
 
Grumpy's shingle price spreadsheet. Here is an example I just priced today on PDF.
Just FYI if you are interested......using the program I like to use, I punched in those numbers real quick and it leaves about 600 for mark-up or profit, considering current prices in Minneapolis for both labor and material.

To make good profit, this should be at around $7,500, but I know I could never get those prices. That is with a 50% markup on mat. and labor.
 
50% markup is rare to land jobs with these days. a few years ago yes, but not now. roofers are cutting each others throats in NJ with how cheap they are pricing jobs. my material usually costs a lot more so the markup% has to be lower. you can't mark up a 3000 dollar door 40% plus the install and trim and get any jobs. once and a while someone might bite but they are not the norm these days.

grumpy, so if you don't show the HO the spreadsheet, do you then type up a proposal in quickbooks or some other program to explain and price out the job with one line?
 
I don't like to use numbers like 50% markup, because it's way too broad. What exactly is marked up? I'm not actuallya sking you, but everyone marks up different. I heard someone say they were getting 60% markup, but they were much cheaper than me. When discussing further, I found out that they were marking up their actual labor costs plus materials 60%... that 60% was for labor burdens also. As I have said numerous times my labor burden markup is about 75% after WC, GL, FICA, SUDA, FUDA etc... By my math he was losing 15% on his labor. That's why I markup my labor once for burdens and then again (when I mark up the materials) for profit.


If I thought I could get $7,500 on this particular job I would go for it. Trust me when I say that the insurance company is offering less to the property owner than I have the job valued at. They did forget the dumpster but other than that their labor rate per square is just NOT enough. I'd have to have guys on meth to work fast enough to make any money or not pay my WC. It's funny how insurance companies promote the hiring of non insured or under insured contractors based upon what they compensate.

I don't know what you are paying for on materials. I just got my new price list today at 78 for landmarks and 74 for heritage.
 
grumpy, so if you don't show the HO the spreadsheet, do you then type up a proposal in quickbooks or some other program to explain and price out the job with one line?
Attached is the proposal for the job my spreadsheet was factored...

As youc an see it's 3 pages long and in great detail what work we intend to offer. This is the bible. This is what we are going to do. This is what the customer and insurane agent see. I only show the insurance agent the spreadsheet if they argue or fight. Normally it stays tucked away like my privates. But the proposal is god. I will not do ANY work without a signed proposal.

If it's there we are doing it, if it's not there it is not being done. It is protection for me as well as the property owner.
 

Attachments

I guess in IL you don't have to show an estimated start and end date? it's called consumer fraud in NJ if we leave that out of proposals or contracts.

gotta love this state. most people don't know and never ask either.
I put the start date on my contract, not the proposal.
I write it in on customer request and I am very vague about it too. How can I predict start and end dates if the customer hasn't given me a down payment and color selection? Also how can I predict start and end dates when weather is a tremendous factor with roofing. Every consumer agency says to get it in writing, and I have no problem doing it, but I can't predict until I have approval to do the work. When the customer asks, I tell them "right now we are scheduling out at about 2 weeks lead time and your job is a one or two day job. However if you wait until fall that might be 4 weeks lead time." When they actually sign, I can write that down....


"Work to start approximately the first week of September weather permitting and will take approximately 3 weather permitting business days to complete, as specified above. Alterations to the scope of work or special order materials may affect the schedule." On the reverse side of the proposal on the service agreement there is bull kaka about delays caused by strikes, acts of god etc..
 
that's what I do also. it's a stupid law here in NJ. so many times i send out proposals but we don't do the work for 6 months or a year at times.
it just doesn't make any sense we need to include these dates. i say the same things like available start date of early sept 2010 and end date December 2010, even if it's a job that should take less than a month to do.
 
Maybe I don't know what I am talking about... But the whole point is, we business people shouldn't be pricing our business based on what other people think we should charge, and that is my understanding of xactimate: using industry averages to determine job price. Am I wrong?
From reading all your contributions to this site you definitely know what you're talking about.

But like I said earlier you don't have to use the pricing in Xactimate or in my case Xactremodel.
The sketch based take offs are quick and accurate and thorough, especially when you use macros with your own spec's, variables and pricing.

I'm a new user and not locked in to using it all the time but if I can get it tweaked the way I think I can, this will change the way I do business.

The speed that you can produce accurate estimates is amazing.
The last estimate I did came within $200 (on a $40k job) from the way I usually estimate but took me only a quarter of the time. (and that is because I'm still learning it)

I should keep my mouth shut because using this software is almost unfair to the competition and I don't want them using it

As far as the pricing model, many of the software packages use a monthly fee these days and at $50/mo its not a deal breaker in fact its a great way to see if the program will really work for you without shelling out thousands.
 
BTW, on 95% of line items you can enter any price you want. You can also attach pictures with the estimate if emailing. For example if the adjuster missed damages you can add the line item and a picture of the damage for review, really slick. Not every insurance does email though. One big insurance company is only mail and fax while another one is almost strickly email.

On most window bids you have to get a window bid and include it in your estimate outside of Xactimate. For some reason they don't have real world prices for windows. Siding is about going rate and every contractor I know says roofing pays high.

Someday I'll take a webinar or an Xactimate class in person...
 
On most window bids you have to get a window bid and include it in your estimate outside of Xactimate. For some reason they don't have real world prices for windows. Siding is about going rate and every contractor I know says roofing pays high.
Around here it's the exact opposite because insurance pays for aluminum and we put back vinyl. Most roofers I talk with say they use the extra money to offset the low cost of roofing.
 
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