How to Create a Repair Estimate in Microsoft Excel
Repair services are big in the US. For car repair shops alone, there are over 230,600 according to Statista. If you’re in this kind of industry, you’ll need to create repair estimates for your clients. Refer to the list below to help you in creating your own repair estimate.
1. Determine the Extent of the Repair
Repair estimates greatly depend on how much fixing needs to be done. Before you can come up with an estimate, assess the client’s problem before determining the extent of the repair. In most cases, bigger problems mean more work. And if there’s more work, the bigger the cost estimate.
2. Write an Itemized List of Materials Needed
Coming up with solutions can be done either during or after assessing the problem. Write a list of the possible materials and equipment needed for fixing those problems. If you already know how much each item costs, indicate it in the list as well. Otherwise, allow your client to choose where to secure or buy the necessary materials.
3. Separate the Materials from the Labor Charges
Organize your estimate sheet to avoid causing confusion to your client. Make sure to create a separate section for the job or labor fees. Unlike the costs of the materials, labor fees can be adjusted depending on various factors. This is why it’s important to always consider the extent of the repair.
4. Provide a Personal Insurance to Your Client
Some call this a service warranty, others call it insurance. This can either be in the form of a refund, a free follow-up service, or both depending on the situation. However, make sure the client understands that there are certain stipulations involved. This will help justify the value that’s written on the job estimate.
5. Take Advantage of Excel’s Features
Microsoft Excel is a great spreadsheet tool, and it’s also the perfect tool for creating job estimates. With all the numbers involved, you can leave it up to Excel’s function feature to handle all the computations. Other than that, Excel has many other features to help you in making documents or reports.
What is a repair estimate?
A repair estimate is a document for approximating how much a client is being charged for the repair services. Inclusive of this document are costs for the necessary materials and equipment, as well as the cost for labor.
What are the benefits of using estimates?
- Estimates enable the client to see how serious the problem is.
- Estimates help in building a trusting relationship with the client.
- Estimates contribute to creating a budget and determining a schedule.
What should be included in an estimate?
- Problem/s assessed.
- List of work to be done.
- Materials and equipment needed.
- Overall price.
- Terms and conditions.
- Payment method.
What are some factors to consider when estimating?
- Labor wage rates.
- Urgency or time allotted.
- Price of materials.
- Inflation rate.
What are some examples of estimating mistakes?
- Taking for granted the constantly-changing labor costs.
- Failing to understand the scope of the task.
- Forgetting to allocate a small amount for contingencies or unexpected events.