Estimate
Definition
An estimate is a written offer of price and scope that a contractor provides to a customer before beginning any work.
What Estimate Means for Your Business
What it means
An estimate is a promise in writing: here is what we will do, here is what it will cost, and here is how long it will take. Some estimates are firm, others are ranges, and the customer signs before the job begins.
Why it matters
A clear estimate is a sales tool, a legal protection, and a pricing discipline all in one. Shops with beautiful, fast estimates win more jobs than shops that scribble numbers on a business card.
How contractors use it
Sales reps or techs build estimates on a mobile device, pull from a price book, present options like good-better-best, and collect a digital signature on the spot.
Real-World Example
A roofing company moved from paper estimates to tablet-based good-better-best presentations. Close rate jumped from 32% to 51% and average ticket rose by $2,100, adding $1.8 million in annual revenue.
Related Terms
Price Book
A price book is a standardized catalog of labor and material tasks with pre-set flat rate prices that technicians use in the field.
Close Rate
Close rate is the percentage of presented estimates that result in a booked job or signed contract.
Digital Signature
A digital signature is a legally binding electronic mark a customer applies to a document on a screen, replacing a physical ink signature.
Change Order
A change order is a written amendment to an existing contract that adjusts scope, price, or timeline after the work has started.
Deposit Invoice
A deposit invoice is an initial bill that collects a portion of the total job cost before work begins, typically to cover materials and secure the customer's commitment.
Put This Into Practice with Free Software
Kaldr Tech handles estimate and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.