Been wrestling with this for months now. Sometimes I nail the material estimates but completely whiff on how long something will actually take me.
Other times I’m spot-on with labor hours but materials end up costing way more than expected. Started a spreadsheet to track both but wondering if there’s a better approach that actually works in practice.
Track your actual hours and costs on every job, then compare them to your estimates. Most guys guess wrong because they don’t look back at what really happened. I keep a simple log of materials bought and hours worked, then check it against my original quote when the job’s done. After doing this for a while, you’ll see patterns in where you mess up. There’s a good video that shows exactly how to set up tracking for smaller jobs.
Once you have real data from 5 or 10 jobs, your estimates get way more accurate.
Build your buffer based on the project type, not a flat percentage across everything.
I learned this the hard way after eating costs on too many jobs. Here’s what works for me:
For materials, I started calling suppliers before quoting instead of guessing from memory. Prices change constantly and your brain holds onto old numbers.
The other thing that helped was separating consumables from main materials in my estimates. The main stuff is usually close to accurate, but consumables like sandpaper, gas, small hardware always runs over. I track those as a separate line item now.
Also keep notes on what went wrong when you do mess up estimates. Not just “took longer than expected” but specifically why. Client kept changing mind, access was harder than it looked, weather delays, whatever. Those notes become your best tool for spotting similar situations before they bite you again.
I break down labor and materials completely separate when I quote.
For labor, I figure out my hourly rate first, then multiply by realistic hours plus travel time. Most people forget travel time adds up.
Materials I price out exactly what I need, then add 15% for waste and mistakes. Always check current prices before quoting because everything changes constantly.
The key is knowing your actual hourly cost including truck, tools, insurance, not just what you want to make.
What helped me was splitting my tracking into two separate problems instead of trying to solve both at once.
For materials, I started taking photos of receipts and writing the job name right on them. Then I’d compare what I actually spent versus what I estimated. Turned out I was always forgetting about the small stuff - screws, tape, cleaning supplies.
For labor, I set phone timers when starting and stopping work. Not tracking every bathroom break, but actual work time. Found out I was way off on setup and cleanup time. Those 15 minutes here and there add up fast.
Now I estimate both separately, then add a buffer based on what type of work it is. Familiar jobs get 10% extra, new stuff gets 25%. Has saved me from losing money on jobs where everything goes sideways.
I just double whatever time I think it takes.