ZEN Industries' October 2011 e-Newsletter 
 

The Profits are in the Details

Profit Losses on HVAC EstimatingIt's Scary - A Bad Estimating Method Could Eat Your Bottom Line

In the world of HVAC, profit margins are slim and your bottom line can be crippled by everyday variances in estimating.

The biggest problem is establishing a base unit that is both accurate and consistent. With no industry-wide standard, each software system uses its own approach, and this can cause some expensive problems.

Take an estimate with 61,111 pounds of 24-gauge sheet metal and with a nominal thickness of .0276 inches, priced at 36 cents a pound.  The metal alone has an estimated cost of $22,000.

The variance between the estimated and delivered cost could be significant.  With a real thickness of nominal plus 10 percent, the delivered weight could be 67,222 pounds and cost $24,199.  That's $2,199 directly off your profits, just due to a single variance between estimation and delivery. 

Learn More at SNIPS.com

Snips Magazine LinkThere's a great article at SNIPS magazine online by Jim Segroves, entitled "How the estimating method your shop uses affects the bottom line." 

The article discusses three commonly used methods used in purchasing sheet metal, including: 

  • Theoretical Nominal
  • Theoretical Minimum
  • Actual Weight (without Thickness Limits)

Efficiency expert Jim Segroves is the author of Sheet Metal Shop Burden Recovery Guidelines. 

Jim's article also explores Buying Situations and What to Ask for When Purchasing Sheetmetal, along with how to ensure quality in setting your minimum requirements.

At ZEN Industries, we're constantly pushing the envelope with regard to estimating efficiencies, quality HVAC ductwork, and on-time, on-budget delivery. 

To learn more, including how your company can develop a working partnership with ZEN Industries, please contact ZEN's VP of Sales & Estimating, Drew McCaffrey, at 877-600-0274, or via email to Drew.McCaffrey@ZENIndustries.com.  

RELATED ARTICLES OF INTEREST

DUCT DRAWINGS - Design to Fabrication.  ZEN duct drawings eliminate the imprecision and drafting errors of days past, saving you the headache of dealing with ill-fitting pieces and sorting through a jig-saw puzzle of delivered ductwork.  Read More... 

Automating HVAC Production Requests. ZEN has the ability to partner with mechanical contractors in a way that helps them bid on more jobs, in less time, and with greater accuracy. By eliminating the extra estimating that used to be necessary, costs are lowered and more bids are won. Read more...

No matter how demanding the project, ZEN Industries has the experience and expertise you need. To learn more, Contact ZEN Industries today!  


No matter how big or small your project:

ZEN Industries provides all or part of your HVAC needs. HVAC ductwork manufactured according to your schedule, meeting 3rd Edition 2005 SMACNA standards. Contact Drew McCaffrey - Sales & Estimating at 877-600-0274.

Success in our business is about service.

The quality of our HVAC duct work is of the highest caliber and our price competitive with the best in the industry. Nonetheless, quality and price are default items today in sheet metal fabrication. They give us access to the playing field. Service is where ZEN Industries Inc. gains its edge, and service means people - it's about our experienced personnel and the relationships we build with each and every customer. Learn more at www.ZENIndustries.com.

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