The Winner’s Curse: Estimating Your Way to Profits
What is the winner’s curse? Whoever makes the biggest estimating mistake wins the job. First, the bad news: Successful companies rarely “buy work” through discounting, and profitability is not the reward for hard work, good intentions, or being a “good guy.”
Now, the good news: Profitability is the reward for smart work. This means having good systems in place. Trying to minimize costs is always a goal when tendering contracts. And too often, contractors focus solely on price, adopting strategies and pricing that can kill the rewards of winning the contract. These tactics can go so far as to threaten the company’s financial health.
Key Learning components
o How estimating works – the theory behind winning bids
o Common bidding errors
o A broad overview of a best-practice estimating system
o How estimating fits into the overall sales process
o Builders will have an improved understanding of how estimating works and how to price their bids
o Builders will gain knowledge on the best-practice estimating process and be able to implement these steps into their existing process
Any construction/renovation leader, manager, or estimator who has an interest in winning more of their bids at a higher profit margin
7:30am – 8am: Registration
8am – 11am: Classtime, inc Q&A
Adam Holcombe, MBA, Consultant, Bellrock Benchmarking Inc.
Adam brings a well-rounded set of professional skills gained through progressively more senior roles in small business. Using his knowledge of the science and psychology of change, Adam is passionate about making real, lasting improvements in small businesses.
After working through more senior roles in hospitality and retail, Adam honed his research skills in academia where he specialized in neuroscience, social psychology, and consumer behaviour. His research has been featured in major publications including the L.A. Times, Huffington Post, and CBC. He earned his MBA from the Beedie School of Business at SFU. Since earning his MBA, Adam has been implementing organizational change all over the lower mainland, working primarily with general contractors, renovators and property developers to improve their profits.