Job profitability

Estimating vs Job Costing: Why Good Quotes Still Lose Money

Estimating decides what you promise. Job costing reveals what you delivered. Shops that only estimate keep repeating the same optimistic hours and forgotten travel. Shops that only cost after the fact know they lost money but never fix the next quote. You need both — linked.

What each one does

Estimating Job costing
WhenBefore the jobDuring / after the job
InputsAssumed hours, parts, marginActual hours, miles, parts, fees
OutputPrice / proposalTrue profit and variance
Failure modeHope-based pricingAutopsy with no feedback loop

Why "good" quotes still lose

  • Estimate used unburdened wages or skipped travel
  • Field hours ran long and nobody updated the book
  • Change orders were free
  • Materials were marked up but overhead never hit the job
  • Win rate pressure pushed discounting that job costing never saw

Close the loop in four steps

  1. Estimate with the same cost categories you will track later (labor, travel, vehicle, materials, overhead, leads).
  2. Capture actuals from clock-ins and invoices — not Friday memory.
  3. Compare estimate vs actual on every major job type weekly.
  4. Update flat rates and templates where variance is chronic.

Stress-test a finished job in the job profitability calculator, then compare to what the original quote assumed. The delta is your pricing curriculum.

Compare a quote to reality

Cost a completed ticket in the free calculator and line it up against the estimate assumptions.

Open the free calculator