Video transcription:

Mike Callahan back again just about to hop into the hotel for the second day of a deep dive going over some estimating setting up a complete turnkey production rate based estimating system. So the question today is- how accurate is your lawn care estimating process? There’s a couple things we probably need to look at before we have an extremely accurate estimating process it can be delegated or used by the business manager or owner with streamlined success extremely quickly. The first thing we want to look at is organizing your service offerings, does it have a standardized offering… so what’s included, what’s not included in your estimate description and in the job note so we want to standardize that service offerings, it’s predictable and it’s a systematic way that can be done. After we standardize this product offering in your lawn care company we want to go out and track certain variables such as turf square footage, linear length of bed, number of small, medium and large shrubs whatever the particular thing you’re working on you want to track that job variable we call that a custom field and what we’re gonna do is either put that in a Google sheet or hopefully into a CRM something like Service Autopilot like that we use. Now if all the information is in your head still that’s okay we can create a standardized way of going in and creating something that we use as a form and what we do is that on that on-site estimate form before we get the production out of your head, so whether you’ve got 24 or 25 years of lawn care experience in my head now if I haven’t standardized this yet I’m gonna go and use that on-site form in a mobile phone or tablet and I’m just gonna walk around the property and enter in variables such as the turf square footage, landscape, bed square footage all the things that I’m estimating and then alongside that I’m gonna have an additional entry point where I’m taking the 24 to 25 years of knowledge out of my head and plugging it into that formand I’m gonna say I think it takes two and a half hours for one person to trim all the shrubs to prune them clean them up and then I’m gonna put an approximate drive time and that’s a key point takeaway that we find with a lot of businesses that we’re working with and especially in my business when I first started out I wasn’t differentiating the actual on-site time to do the job the billable time and then the non billable time the mobilization associated with that job so we need to track those separately. Reason being is once we have these data points of the number of units linear length or square footage in the system were able to run reports three to six months later and get an average production rate with your equipment your crews and how long it actually takes them so now we have a non-emotional benchmark how to estimate each and every one of our jobs with I’m gonna call it a fudge factor or the unexpected factor in there because it’s not if it’s gonna happen, it’s when it’s gonna happen . We do have some issues there and we want to count for them in our estimating system so that can be delegated we can take what’s in our hand that knowledge silo and disseminate it across the organization so more people would do estimates without you or unlike a virtual assistant where they can go in and grab these variables and create predictable accurate estimates without you the business owner manager ever having to be involved this is what we did at Callahan’s lawn care gentleman that did all my estimating for me when I became an absentee owner basically was a fertilized technician he had never pruned he had never moved he had never done any of this but his estimates were accurate there within a few dollars of mine dead nuts on several thousand dollar jobs so the challenge today is we want to define your estimates and create a predictable service offering hopefully some gateway services that can be sold over the phone based on things you can measure on the satellite and if we don’t have the number as far as how many square feet of turf we can fertilize or mow when you’re out on site in these properties we want to go in and track the variables that we would be basing it on so we have accurate times and then we’re just gonna go in into a non-emotional form plug in the hours that we think it’s gonna take and then when you pull up your estimate it will multiply those hours times your hourly rate so if it’s 60 bucks an hour and you said it would take an hour it would be $60 and we’d also want to track what your cost is to get it done so your break even so if you have that number you also want to multiply your budgeted times times your cost before profit and that’s going to reinsure that you’ve done the math right and you’ve got the right profit margin so if you’re shooting for $32 per hour 30% profit margin and you were charging 100 bucks and breaking even at $70 an hour so 70-100 be 30 so be 30%obviously it’s just a really roughnumber fictitious but we’d want to make sure that you’re hitting your margins some things I want to take aways create a standardized service offering that includes what it shows what it includes what it doesn’t include we want to track the variables such as square footage number of linear length of bed or number of shrubs and then run some reports about six months later and we do that by subtracting or start and stop times in our drive times separately and if we don’t have those production rates we want to go and create some kind of non-emotional form for your phone so you’re walking around the property you’re plugging in the data and when you pull up the estimate template it’s multiplying the projected hours times your hourly rate and giving you a price budgeted time and cost and then we’re gonna add the drive time and anyother variables such as disposal fee all the things that should be charging for but a lot of times as contractors we don’t charge for so we want to make sure we take those unexpected things thatwe usually just take for granted such as disposal or drive time and include those in the equation so hopefully that makes sense but I want to make a video about it because this comes up on a daily basis when we’re talking to other contractors a simple growth and I want to just kind of lay out the foundationso if you can take a few hours today over the weekend go out standardize your service offerings and explain what’s included and what’s not included your satisfaction guarantee track the job variable such as square footage linear length or number of units and if you don’t have the production numbers yet create a form or you can plug in the hours you think it’s going to take and have that multiply out times your hourly rate and your budgeted costs when you open up your estimate template and a product like service autopilot you have a price a budgeted time and cost before profit and that once that job is dispatched or done and we’re tracking the drive time separately we’re tracking any disposal or any other variables separately and then the on-site time for that production rate we want to track that and once we get three to six months worth of data now we’ve got non-emotional data point to go out and create a production rate based estimating system on your equipment your crews and now that can be delegated with certainty that you’re gonna make profit long as they stick to that standardized estimating system so this is my tip today how to take your life back from your business create a predictable profitable estimating system in your business so comments questions drop below I want to say what’s up to Robert and Chad I know Chad’s definitely hung out with us in seeing some of the stuff in action so it’s someone just don’t preach about it’s something we actually do and it’s something that we’re more than happy to just give you some some content here free of charge how to do it because this was the pivotal point of my business financially as well as a freedom points to be able to walk away from the business for a few days or a month at a time so hope all’s well and drop any questions and comments below and about to hop back into the hotel here for a second day of a deep dive with a simple growth team building out just what we’re talking about here so I’ll talk to you later.