7 Pricing Classifications of a Pleasing Kitchen Remodeling Project Process
Every time I get a call from a potential customer, I always hear one or more of the words related to project pricing. For example, estimate, quote, bid, etc. Here are 7 Pricing Classifications of a Pleasing Kitchen Remodeling Project Process.
Ballpark
According to Investopedia, a ballpark figure is "a rough numerical estimate or approximation of the value of something that is otherwise unknown." Click here to get an idea for ballpark costs.
What You Need to Know
Be patient. The year is 2021. You and I and everyone else have all experienced the trials, tribulations and improvements of the Covid-19 ____, what should I call it? Covid-19 era? Covid-19 scandal? Whatever it is, our entire national and global economies have been affected, both favorably and adversely. Getting a big boat stuck in a major commerce artery or delays of freight containers awaiting unloading doesn't help matters either, online security breaches and software upgrades galore notwithstanding.
That said, asking for a ballpark estimate these days may work best in my favor, but not yours. Things have changed for everyone. When it comes to estimates, we, the professionals, have to adapt to those changes more than you, the end user. We have to consider many ever-changing costs, prices and product acquisition if we can still get our hands on the things we need for your project. You only have one number to consider. That said, if you can't hold onto your ball and keep it from rolling into foul territory, then prepare to pay a higher than necessary price.
Estimate
An estimate is just that, an estimate, or an approximate calculation of the final price of the overall project that includes material, overhead, and labor to complete a specific project.
Quote
JOBSITE by Procore defines a project quote as "a figure that a contractor gets from a supplier for the price of materials they need for a job." Likewise, when you are gathering quotes for your project, you as the contractor are getting quotes for each parts of your project. Those quotes can be deeply itemized down to the nail if you so choose complexity, or quotes can be generalized toward each part of your project, i.e. plumbing, electrical, cabinets, painting, etc. if you choose simplicity. Out of the 7 Pricing Classifications of a Pleasing Kitchen Remodeling Project Process, I prefer to use quote for my estimating terminology.
Great American Ballpark of the Cincinnati Reds. Ballpark estimate- $290 million
Bid
Bids provide a little more detail than do estimates and quotes, but not a complete list of details as does a proposal.
Cost
Cost relates to the cost of goods sold. In other words, each item used for the project.
Price
The price is what you will pay for the completed project.
Proposal
A proposal provides the most detail regarding what the final result and outcome of a project will be. A proposal is a written document that includes the tentative timeline, budget, objectives, and goals for completing your project in exchange for the price you will pay upon acceptance of both the customer and contractor.
Conclusion
The result of a pleasing kitchen remodel
As it relates to estimates, bids, and proposals, each company and service provider handles their business activity differently and, although similar, will rarely, if ever, be the same.
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