In this episode, we discuss the importance of questioning established processes by sharing a story about a woman who followed a cooking method without understanding its original context. We then apply this lesson to business, specifically focusing on the bidding and estimating process in contracting. We highlight the common practice of bidding per unit (e.g., per square foot), and explain why this might not be the most effective approach. Instead, we propose a four-step method: 1) bid a process, 2) know all your costs, 3) add a markup, and 4) compare it to the market. This new approach ensures all costs are covered, profit is known, and adjustments can be made as needed. Future episodes will delve into each step in more detail.
00:00 Introduction to Processes
00:32 The Ham Story: Questioning Traditions
02:45 Bidding and Estimating in Business
03:35 Challenges with Per Unit Bidding
06:11 A Better Bidding Process
07:25 Four Steps to Effective Bidding
09:34 Conclusion and Future Episodes
