When starting a flooring business, you might struggle to set the quoting right to make sure every job is profitable. As a flooring job contractor, If this happens to you, then you’re not alone.
Estimating flooring costs is more difficult than fixing the flooring itself. A wrong estimate may result in a hefty loss. The actual problem is that there is no fixed formula or thumb rule to get precise flooring costs. One needs to take into account multiple factors to arrive at the correct and suitable flooring cost. Moreover, these factors differ in different projects.
In this flooring guide, all the essential and critical factors are jotted down to help you estimate and calculate the most precise cost. Scroll down to know more.
Step-by-step guide to estimate flooring jobs accurately
Step 1: Estimate basic flooring cost
Measure the Area
Start by measuring the room or the large area that requires the installation of a new floor. Gather the tools including a tape measure, a notepad, and a pen. Now measure each room or specific area’s (dimension) length and width and record these measurements to calculate the square footage.
Choose Flooring Material
There is a variety of flooring materials available in the market. This makes it challenging to make the right selection of flooring material. Each of them has its challenges, benefits and price points. Here’s a detailed overview of common flooring types:
Hardwood Flooring
Aesthetically finished flooring made from solid wood like oak or maple, Hardwood flooring is preferred by people who want a luxurious appearance in the house or office. However, they are quite expensive, hard to maintain and moisture-sensitive.
Laminate Flooring
Flooring looks quite similar to wood or stone and is affordable, very easy to install, and durable. However, the major disadvantages are their shorter lifespan, moisture sensitivity, and lack of the authentic natural look of real wood.
Vinyl Flooring
Made with synthetic material, it is a durable and stylish option that is not just cost-effective, water-resistant, and stain-resistant but comes in various styles mimicking the hardwood and stone finishes. Vinyl can be a relatively inexpensive option to consider.
Tile Flooring
When looking for a durable yet versatile option for indoor and outdoor spaces, tiles are the right choice. Available in ceramic, porcelain, and stone, they are sturdy, water and stain-resistant, and have aesthetic appeal.
Carpet Flooring
Crafted from materials like wool or nylon, the carpet flooring offers comfort, warmth, and a variety of patterns, but needs consistent upkeep. The material is susceptible to staining and can retain allergens.
Bamboo Flooring
Another natural-looking flooring option similar to wood is Bamboo. It is popular for sustainability, durability, and affordability.
Calculate Material Cost
Simply measuring the floor area is not enough to estimate flooring costs. Here the quality and quantities of material needed are important to decide the cost.
So decide on what type of flooring to install, and then calculate the material cost by multiplying the total square footage by the price per square foot of the chosen material. To correctly estimate material cost answer the following:
– What materials do we need?
– How much material do we need?
– What is the cost per unit for each type of material?
– From where will we acquire the materials, and transportation cost to the work site?
Step 2: Add Underlayment and Additional Materials
Apart from the principal flooring material, there are many other additional materials required either to enhance the glare or finish of the flooring or sometimes at the client’s demand. Flooring materials like laminate or hardwood, need underlayment. Underlayment is a thin layer of material like linoleum or asphalt tile that is sandwiched between the subfloor and the floor covering. This is important for offering protection from moisture damage, cushioning, or soundproofing. To determine the cost of underlayment, simply calculate the per square cost and multiply it by the total area of flooring.
Step 3: Consider Installation Costs
Installation cost is the direct and primary cost in the flooring business. There are two options available for flooring installation. You may either ‘Do It Yourself’ or go for hiring professionals to do the job. In the former case, you don’t incur any outside labour cost however the cost of supplies and tools must be added along with nominal self labour cost.
On the contrary, if you choose to hire a professional, there will be little extra you need to add up. For efficient costing, consider estimations from different professionals and compare them to reach the best price quote. However, we would not recommend you to compromise with quality to cut the cost.
Step 4: Add Extra For Waste And Contingencies
Wastage and contingencies in any business are permissible and acceptable. However, it adds up to the cost. The flooring business is no different. Wastage and breaking of tiles, wear and tear of laminate materials, etc is quite normal and considered as a part of the cost of materials.
A wise businessman will always consider 3 to 5% on account of material waste and other unforeseen expenses. Sometimes variation in raw material price also results in cost estimation. For this, one may create a ‘Contingency Fund’ to cover up unexpected price hikes.
Step 5: Business overhead
Marketing Cost
This is a highly variable factor as it depends on your marketing budget. Furthermore, the marketing costs of any business count on its target audience, strategies used for marketing, and most importantly scope of the business. Here are some key marketing strategies that affect your finances.
Every flooring contractor must add a suitable amount for website development and maintenance to the costing budget.
Moreover, In the present online era, every business must be on social media platforms. Also, print marketing is a default cost that every business includes for sure. It includes printing and distribution costs for brochures, flyers, and pamphlets. This targets your offline audience generally.
Don’t forget to keep a buffer amount for additional marketing expenses like photography or videography for social and print media, consultancy services, and other such expenses.
Keep in mind that the actual marketing expenses may vary based on your specific business needs and goals. It’s essential to create a marketing plan and budget that aligns with your business objectives and target audience.
Transport Cost
Here are some factors that contribute to transport costs in a flooring contract business
Distance: The farther the transportation distance, the higher the cost.
Weight and volume: Heavier and bulkier materials cost more to transport.
Fuel prices: Fuel costs impact transportation expenses.
Vehicle Type And Size: Larger vehicles or specialised vehicles e.g., crane trucks, 18-wheelers, etc may be more expensive.
Load Consolidation: Combining multiple deliveries can reduce costs.
Route Optimization: Efficient routes can lower fuel consumption and reduce costs.
Tolls And Taxes: Amount for tolls and road taxes may also apply and that should also be considered.
Insurance: Transportation insurance must be added to overall costs.
Considering these factors can help you estimate and manage transportation costs in your flooring contract business.
Permits And Licence
Here are the permits and licences you need to start a flooring business –
Contractor’s Licence: Contractor’s licence from your state contracting licensing board
Business Licence: Business licence to conduct business within city limits
Tile Certification: Tile certification is needed for tile installation. In other floorings like carpet or wooden, such certificates are not required.
Other Licence: General liability insurance and other licences and permits that may be required by your city.
We would recommend you essentially go through the contracting board website in your state and check all the requirements regarding permits and licensing in your area of operation.
Step 6: Add Your Profit margin
Profit is the ultimate goal and biggest motivation for any business. So, while estimating flooring cost, you must have to add a certain percentage of profit. The amount of profit should be added keeping in mind the prevailing competition in the market and customer demands. At the same time, you should also take care of providing quality services and products to your clients otherwise it may drastically reduce your sales figures.
However, the most important thing to understand is that there should be an appropriate balance between business profit and customer affordability. This is crucial for long-term business success.
Step 7: Calculate the total cost of flooring:
Lastly, Add together the material cost, underlayment, additional materials, labour cost for installation, extra material for waste, business overhead and profit margin. Make sure to also investigate the current prices of flooring in the client’s area to provide a precise estimate. Additionally, consider rounding up your costs to accommodate any unforeseen expenses.
Here you go with an estimated cost for the flooring project.
Example Calculation:
Project: 300 square feet of hardwood flooring.
- Material Cost:
- $10 per square foot.
- 300×10=$3000
- Underlayment:
- $2 per square foot.
- 300×2=$600
- Installation Cost:
- $3 per square foot.
- 300×3=$900
- Waste and Contingencies:
- 5% of $3000.
- 3000×0.05=$150
- Business Overhead:
- $800 (marketing, transport, permits).
- Profit Margin:
- 20% of total cost before profit.
- 5450×0.20=$1090
7. Total Cost: 3000+600+900+150+800+1090=$6540
Wrap Up:
As you have read above, multiple factors influence your cost sheet for the flooring business. These factors may also vary based on the location where you operate and other factors. All the factors mentioned in this guide are inclusive and broadly help you in preparing a rate list for your flooring business.
FAQ
1. What are the hidden costs of flooring estimates?
While estimating the flooring costs, beyond the quote for labor and material, hidden costs often arise such as subfloor preparation, removal, and disposal of old flooring material, trim, and accessories. Structural issues like unexpected subfloor damage may require a higher cost. Other than that other materials like adhesives, underlayment, and finishing supplies, costs associated with moving furniture or indulging business downtime for commercial instalments are also counted in the hidden costs.
2. Factors to be considered while estimating flooring costs?
Estimating the flooring costs includes several key factors that ensure an accurate budget and make your project execution smooth. Type of flooring, area size, subfloor condition, installation method, additional material, labour costs, removal and disposal, trim and accessories, additional services, warranties and guarantees, and more.
3. How do I choose the right flooring for my home or business?
While choosing the right flooring several considerations should be in your mind to make sure it meets both practical needs and aesthetic preferences. Assessing the function and traffic of the space, considering maintenance requirements, your style preferences, and overall, budget is another critical aspect, and lastly consider environmental factors. Also, consult with the flooring professionals.
4. How much does the flooring installation cost?
The flooring installation cost is based on the types of flooring, the size of the area, and the other additional preparation that is needed during installation.
5. How do I schedule a consultation or get a quote?
It is easy to schedule a consultation. You can contact them by phone or through their website to arrange a convenient time to visit your home or business. During the meeting, you can discuss your needs and requirements, and they will provide a detailed quote for the project.
