The Hidden Cost of Manual Estimations

money lost due to manual measurements

Is your team driving down to customer sites every time a new commercial lead comes in? Are your sales and account managers sitting on their computers for hours drawing polygons on online tools like Google Maps Pro or Go iLawn? If the answer is yes, this article is for you. 

Manual Estimation has incredible hidden costs

Relying on manual estimates is adding cost to your business and impacting profitability and revenue growth. Here’s how –

manual estimations come at the cost of productivity and growth

Getting a bang for your buck!

Every minute your sales or account managers spend on non-billable, low-value-add work, is a minute away from activities that generate growth for your business. This can be lead generation, prospecting, up-selling to current customers, or building new relationships.

You’re probably bleeding hundreds of thousands of dollars

If your salesforce is spending between 10-20% of the time measuring properties on online tools or on site with a measuring wheel – you’re losing almost 300 hours (2 Months) per sales employee annually. Now multiply it with the size of your salesforce and their hourly wages and  – we’re talking thousands of dollars of wasted opportunity. Factor in the revenue contribution an employee can have during the time and the impact starts to add up. 

Even a 10% productivity gain per sales employee could fetch you hundreds of thousands of dollars. If your salesperson makes $500K per year, you might be leaving a ballpark $50K on the table per employee.

Are you getting the most out of your landscaping jobs?

The manual process involved in getting take-offs is also incredibly inefficient and impacts employee morale at multiple levels. Despite taking hours, the measurements are often inaccurate and impact the job profitably. A salesperson doing $500K in sales every year and underbidding by 10% could cost the business over $50K.

Alternatively, if they overmeasure by the same percentage – the chances of winning the bid plummet. Either way, employee morale is impacted as their commissions are often dependent on the sales they make, and the job profitability. 

outcomes of inaccurate measurements:
1. overbidding
2. underbidding

The mammoth cost of replacing a salesperson

The cost of hiring a new salesperson can be astonishing and can burn a deep hole in your pocket. From searching, interviewing, training, to actual productivity can take up to 9 months and that cost is incredibly high. Empowering your sales teams with the right tools and resources is paramount.

If you have a team of estimators

This is true even if you have a costly and skilled estimator team supporting your sales teams. We have spent time with a host of commercial landscaping companies over the past 2 years and almost all of them have a substantial proportion of under-billed / unprofitable bids – with OR without estimators. The problem is not with the skill set of the estimator but the manual estimation process itself being inefficient. The current tools make estimation and collaboration between sales and estimator teams much harder than it has to be.

productivity, performance, revenue etc get affected by manual measurements

In 2021, if you had to travel for a customer meeting at a location X around 30 Miles from your office, would you open your Google Map / Car Navigation System, use a Paper Map or just navigate looking at Street Signs hoping you end up at the exact location? Given the choice, 10/10 people would use GMaps. The same is true with current estimation tools – using tools like Go iLawn or Google Maps for estimates is like using paper maps and street signs when the world is moving to Navigation Systems. Here’s why they simply do not work anymore – 

manual measurements are time consuming
manual measurements are inaccurate
manual measurements have a high chance of error

Where Attentive comes in…

At Attentive, we have built an automated tool for landscape estimations that completely automates your property measurement workflow. Now, with our simple 3-step measurement process, your team only has to spend a few minutes setting up the estimates, while we do the heavy lifting for you.

Working in conjunction with your skilled salesforce and/or your estimators, Attentive will give you a superpower that will allow you to compound your growth. There’s a lot more to the platform that will make your estimations efficient, accurate, and a lot more collaborative.

Don’t take our word for it, try for yourself.

Sign up for a free trial today. No Credit Card Needed.

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