Chat with a plumber made me question my whole approach to bidding jobs

I was swapping stories with this older plumber named Gary at the supply house last Wednesday. He told me he stopped itemizing every single material cost in his bids about 10 years ago. Instead he just charges a flat labor rate plus a standard markup on parts. I asked him how he doesn't lose money on the weird jobs with hidden issues. He said he just builds a 20 percent buffer into every bid for surprises. It hit me that I've been nickel and diming myself trying to get every line item perfect. Now I'm thinking about trying his approach on my next three estimates. Has anyone else switched to a simpler bidding style and seen it work out?

3 comments

3 Comments

victorhill8d ago

Huh! I actually read something similar in a business book about contractors. The guy said the same thing - that itemizing everything just gives customers more things to argue about. Might have to borrow that 20 percent buffer idea myself.

morgan89813d ago

Used to think itemizing everything was the only way to be fair to customers. Gary's approach sounds way more sustainable, might give it a shot on my next few bids and see how it shakes out.

taraanderson13d ago

Start by rewriting your bid structure entirely. Itemizing everything is like handing customers a microscope to pick apart every screw and nail you touched. Gary's approach works because people buy outcomes, not a shopping list of materials and labor. Once you try it, you'll realize how much time you waste defending a line item for a box of screws when the customer's already sold on the final price. Fair doesn't mean showing them your math homework, it means delivering what they asked for at a price that keeps you in business. Just be ready for the occasional client who demands an itemized breakdown anyway.