Why is Estimating Important to Landscape Construction?

Landscaping companies are a unique breed in their need to accumulate clients in the field. Some come by way of word of mouth and advertising, others come through bids. In either case, accurate estimates are essential to a successful landscaping business. Estimates tell your customers what you are worth.

At Arborgold, we design software specifically for businesses in the field and are constantly striving for the latest and most relevant tools. One of the tools we offer is Proposal Estimating Software. This software takes the guesswork out of estimations, but it also offers benefits to both you as a business owner, and to your clients.

Here, we will go into more detail about estimating and bidding in landscape construction, and why it will help your business thrive. Estimating software lets you provide realistic price points to your customers. However, it also provides predictable income and profits for you as a business owner. To get the most out of your estimating software, consider choosing one with a strong focus on:

Profit Margins

What you earn on a project should be part of the consideration for every estimate you offer a client. If you are not earning, what is the point of taking on a new job? At the same time, you want to ensure that your customers are getting value for money because landscaping is a competitive field.

Using Arborgold Landscape Business Software you can track profit margins and watch for market fluctuations simultaneously. Our software is tailored to the needs of local landscapers, providing access to tools, information, and the support you need to ensure your price points are where they need to be to get ahead.

Project Timelines

The timeframe in which you complete a project is often as important as the cost of that project. Why? Your clients are looking for a service, and they want minimal disruption while it is being completed. For example, if a hotel hires you to revamp their gardens and put in some water features, they want their guests to enjoy these elements as soon as possible. As work is underway the hotel grounds look unprofessional, disorganized, and unappealing. It is the finished project that the hotel is interested in, so the timeline matters.

The timeline also matters to you as a business because it allows you to better schedule other clients and projects, and ensures you have enough staff around to get all those projects complete.

Vendor Rates and Material Inventory Supply

Another consideration to make when estimating are vendor rates and the inventory for your supplies. In short, you want to be certain you are not overpaying for inventory, by undercharging clients. In fact, you want to be sure you are not overpaying for inventory in general.

Having inventory and price points available at a touch of your screen vastly impacts your timing and accuracy when creating estimates for clients. This information is probably available in other areas, but it is not as easily accessible and requires you to log into multiple software services and accounts.

Legal or Regulatory Restrictions

Before taking on a job, it is important to know the limitations of your company, state, and city zone. The legal restrictions of jobs in your area could impact the amount of money a client will pay to achieve the same landscaping look as a neighboring property with no restrictions. It could also impact your ability to perform a job after you have bid on it.

When making landscaping bids, you should always verify that the location and job type are compatible. Using accurate and up to date estimating software can help you keep track of these details.

Indirect Costs (overhead)

Never mind the cost of taking on a new job. What about the cost of running your business day to day? This is important information to include in your calculations for new client estimates. Why? Because if you do not know where and how much of your money is going out, how will you know how much money you need coming in?

Estimates are a give and take. You give a customer a number that provides them with a service, in turn, you receive payment as a landscaping business. When the number you provide does not add up to what is needed to operate your company, your business will flounder. Fortunately, landscaping software offers a real-time look at these numbers.

Equipment Requirement

Finally, the equipment you use on a job site plays a role in the cost of that job. How much is the fuel for the equipment needed? Is the equipment in high demand? If so, are you losing out on better-paying jobs by offering the use of equipment on this job? These are some of the questions to ask yourself about equipment while designing your estimates.

Estimating software from Arborgold gives you a perfect snapshot of your current and future equipment needs, including the financial side of equipment use.

Contact Arborgold Today

Arborgold is a proud supporter of U.S. companies and works out of Fishers, Indiana. Being a local company gives us pride in helping other U.S. businesses and expanding our economy. It is important to us to see small and large landscaping businesses achieve goals and exceed market expectations. At a time when most businesses have gone digital, Arborgold makes it possible for landscaping businesses to take your company online as well.

If you are interested in learning more about estimating and bidding software and how it can change your business for the better, we are happy to help. Arborgold landscaping software has the unique ability to give you a look at the project actual vs. the project cost. This shows you line by line how an estimate comes together. This is especially helpful in government bids.

Arborgold also offers a price cost calculator so you can track your inventory and group customer services together. To learn more, we invite you to take the Arborgold tour, here.