A lot of people ask me why they should invest in an estimating software system; what are the benefits over traditional methods of estimating?
I think there are a lot of great reasons why businesses should use estimating software. The most important one for me though is the fact that no other tool is specifically designed to help you estimate.
Sure, spreadsheets can work, but they were never designed to produce accurate and competitive quotes as well as deal with all the activities that go along with that. That’s why spreadsheets so often fall short and end up costing businesses money in terms of lost jobs or mistake riddled quotes that just aren’t competitive.
I’m not the only one who thinks estimating software is better for businesses though. I recently found some research from a company called Software Advice who surveyed over 100 construction professionals representing a variety of trades and company sizes about their estimating and the tools they use. The research set out to “establish industry benchmarks that can be used to gauge the efficiency, effectiveness and performance of cost estimating systems”.
The findings were very interesting. While a large number of those surveyed still used spreadsheets for their estimating, those that used estimating software said that they produce faster and more accurate bids. The survey also found that users of estimating software “over estimate less than 35% of the time, and under estimate only 5% of the time”
Respondents were also asked what they thought were the top benefits of their estimating software systems.
The results are illustrated in the graphic below.
Image Source: Software Advice
I think this research validates the idea that estimating software is simply a better tool for businesses. It just makes sense to use something that helps you address the challenges that your business faces in its estimating and produce the best estimates that you possibly can.
* Graphics were used with permission from Software Advice.
If you’re not already using an estimating software system and would like to know exactly how it can fit into your business, why not contact us?