Curious about your estimate (rounding)

[hardworkingstiff]

I do my estimates in Excel. I calculate markups as a % (different % for different materials). My estimate usually comes up with other than zeros to the right of the decimal point. I just enter the number as it comes up. Sometimes I hear facetious comments about the dimes and pennies.

Do you round to zeros or leave your number as it comes up with the dimes and pennies.

(Yea, I have too much time on my hand, sitting around asking this question).

 

[charlie b]

Simple solution: Go to the cells within Excel that display the pennies and dimes that you don't want the customer to see. Hit "CONTROL 1" or select "FORMAT, CELL" (it's the same thing). Then select "Currency," and change the decimal places to zero. That will round the dollar amount to the nearest whole dollar, and display that amount.

 

[dmagyar]

I add tax separately

I add tax separately

Lou, I also use a modified (over several years) spreadsheet. I use a line item extension where I include separate tax, markup, labor hours, labor cost based on the common labor rate I'm using. Then any indirect costs that crop are totaled near the bottom of the sheet so they don't get burdened that way. With the line items, if I need to add multiples or single out one cost item I can.
Does it land more jobs? Not lately.

But it's better having some idea of what your true costs are than to ball park, or square foot the estimate. By experimentation I can also do a post mortem to see if I could have got to the level the job went for.

 

[hardworkingstiff]

I agree, it's easy to modify Excel to not show the dimes and pennies. I just chose to transfer to the proposal with the dimes and pennies and was just curious as to what others do.

I was just curious as to how many people round to zeros and how many (if any) display the dimes and pennies as other than zeros in their proposal to the customer. Like I said, too much time on my hands.

I also prefer my way of estimating to unit price methodology.

 

[LarryFine]

By experimentation I can also do a post mortem to see if I could have got to the level the job went for.

And what do you usually find?

 

[gadfly56]

I round up to the nearest $5. If it comes in at $12,445.01 it goes out as $12,450. I also try to protect price points. A bid that looks like $10,090 will go out at $9,995. Change orders are the same.

 

[hardworkingstiff]

I also try to protect price points. A bid that looks like $10,090 will go out at $9,995. Change orders are the same.

I do the same thing, and most contractors I speak with also do it. I will do it by changing a % of profit so I know how things are being affected.

 

[macmikeman]

When I deal with general contractors or corporations I round. When I deal with homeowners I do not, and if it happens to be a round number I add some change to the number. Better salesmen than me figured that out.

 

[zappy]

I leave the dimes and pennies. One customer commented that he would be worried if it wasn't like that.

 

[JES2727]

I also include the dimes and pennies.

 

[mwslo]

Rounding

Rounding

When I give a price to a GC I never include nickles and dimes. When working directly for the end customer I've found they feel more comfortable with a number that sounds exact so I will include the change if the job is small enough.

 

[dmagyar]

You can't get there from here

You can't get there from here

And what do you usually find?

Larry, mostly that jobs are going for very little, way past what I ever thought I would see. The gardeners around here, most without licenses and all they're paying for overhead is gas and bandaids are getting more per hour.