Starting a spray foam insulation business has it’s share of risks, especially when you’re just starting out. Good information is critical when asked to bid a spray foam job, not only to you, but to your clients as well. Having a good handle on labor and material costs is the first step to giving a sound bid that you can turn into a profitable payday.
Know, Price, Track
Gain a better understanding of your market and your competitors. Consider calling and asking the charge rate per square foot to compare market price range and be competitively priced.
Know your precise square footage. Carefully measure the surfaces to calculate total square footage and use that to determine the price and amount of material needed to complete the job.
Calculate. PRICE = Your price per board foot x thickness (per local building code or desired by customer) x square footage (walls, ceilings, etc.)
Bidding Large Jobs: Avoid the temptation to provide a volume discount. Larger jobs mean more things that can go wrong including: weather conditions, temperature fluctuations, scheduling of other contractors, etc. Safety and equipment availability can also play a factor. Keep these things in mind when considering bidding larger jobs and be sure to include a markup of 20-30% above base rate to overcome these potential pitfalls.
Track Your Results: Data Tracking and collection systems are a great way to determine material usage and labor costs for each job. This information can then be used to confidently bid jobs based on past material usage and labor to complete similar sized jobs.