"Mistakes That Cost You Money": Episode 1: Overestimating Material Needs in Fencing Jobs

How to Stop Wasting Money and Protect Your Bottom Line

The Silent Profit Killer No One Talks About

If you’ve been in the fencing business long enough, you’ve probably experienced that sinking feeling. You wrap up a project, step back to admire the clean lines of your work… and notice a neat stack of leftover posts, rails, and wire mesh sitting in the corner.

It’s not just an eyesore, it’s money. Money that’s now tied up in materials you didn’t need for this job. The money you might not recover if you can’t use those exact items on the next project.

For many contractors, overestimating material needs happens so often that it feels like “just part of the job.” But here’s the thing: it doesn’t have to be. And if you can tighten up your estimating process, you can keep thousands of dollars in your pocket each year without changing anything about your sales, your crew size, or your rates.

This isn’t about pinching pennies. It’s about running a smarter, more efficient business in a competitive industry.

Why Overestimating Happens More Often Than You Think

Overestimating materials is surprisingly common in fencing projects, whether you’re working on a simple chain-link boundary or a custom cedar privacy fence. There are a few big reasons it happens:

1. “Better Safe Than Sorry” Thinking

Many contractors over-order because they don’t want to run short mid-project. On paper, it makes sense: extra materials mean no costly delays while you wait for another delivery. But without a system for calculating realistic overage, you can swing too far and end up overspending.

2. Outdated or Inaccurate Measurement Methods

Some installers still rely on “rules of thumb” or mental math they’ve used for years. While experience is valuable, even a small miscalculation can snowball, especially on larger properties. If your method doesn’t account for exact post spacing, gate placements, or terrain changes, you’re likely buying more than you need.

3. Miscommunication Between Sales and Installation Teams

In some companies, the person quoting the job isn’t the same person doing the work. If details about layout changes, property lines, or client preferences aren’t shared clearly, the material order may be based on outdated information.

4. Supplier Pack Sizes

Suppliers often sell materials in pre-set quantities, bundles of pickets, rolls of wire, or boxes of brackets. Sometimes contractors round up to the nearest bundle without checking if the extra units can be used elsewhere soon.

What Overestimating Actually Costs You

It’s easy to dismiss overestimating as a small problem, after all, you can store leftovers for future jobs, right? But here’s why it’s more expensive than it looks:

• Tied-up cash flow: Extra materials mean money is sitting on a shelf instead of funding payroll, marketing, or equipment upgrades.

• Storage headaches: Not every contractor has a spacious warehouse. Leftovers often end up crammed in a shed or yard, risking damage from weather.

• Risk of waste: Materials can warp, rust, or fade over time, especially untreated wood or metals stored outdoors.

• Job pricing distortions: If you consistently overestimate, your bids may be higher than competitors who calculate more precisely, costing you potential projects.

A 2022 report from the National Association of Home Builders found that waste and over-ordering can account for up to 8% of material costs on small-to-mid-size construction jobs. For a $10,000 fencing project, that’s an $800 leak in your profit on just one job.

Real-World Example: The 50-Post Problem

Let’s say you’re installing a 300-foot wooden privacy fence. The posts are set 8 feet apart. That’s 38 posts plus 1 for the end, so 39 total.

But if you use a rough “about every 7 feet” estimate without double-checking, you might calculate for 50 posts just to be safe. That’s 11 extra posts at, say, $30 each—$330 spent before you even start digging.

If that overage happens on just five jobs a year, you’ve spent more than $1,500 on materials that weren’t necessary. And that’s not counting rails, nails, or concrete over-pouring.

How to Estimate More Accurately (Without Risking Shortages)

The goal isn’t to eliminate overage completely; you’ll always want a small buffer for unexpected issues. The trick is making sure your “just in case” pile doesn’t become a “just wasted money” pile.

Here are strategies that experienced contractors use to find the sweet spot:

1. Start With Precise Measurements

Laser measuring tools and modern property-mapping software can give you exact distances, even accounting for curves or uneven terrain. The more precise your base measurement, the less you’ll need to pad your order.

Tip: If you can, walk the site twice - once for the initial quote and again right before ordering materials. Property owners sometimes make changes that affect the layout (like adding a gate).

2. Use a Standardized Estimating Formula

Every crew member who estimates jobs should follow the same process. For example:

• Linear footage ÷ post spacing = total posts

• Multiply posts by number of rails per section for rails needed

• Add 2 - 3% extra for overage (instead of a random number)

This keeps calculations consistent and prevents “gut feeling” estimates from creeping in.

3. Factor in the Fence Type

Different fencing materials have different overage needs. Vinyl panels, for example, are less flexible in size than chain-link rolls. Ornamental iron panels may require exact multiples. Tailor your formula to the specific product.

4. Improve Communication Between Sales and Installers

A quick pre-order meeting between the estimator and the crew lead can catch issues early. If the installer knows the site has a tricky slope or an irregular boundary, they can flag it before the order goes in.

5. Track and Analyze Past Jobs

Keep a simple log of estimated vs. actual material usage. Over time, you’ll see patterns—maybe you consistently over-order 4x4 posts on corner lots or underestimate concrete for sloped yards. Data takes the guesswork out of estimating.

6. Build Relationships With Flexible Suppliers

If your supplier allows returns on unopened materials, you can order slightly higher without the same financial risk. Just make sure you’re not paying high restocking fees that erase the benefit.

The Payoff: More Profit Without More Work

Let’s run the numbers. Suppose your business does 20 mid-size fencing projects a year, and you currently over-order by an average of $300 worth of materials per job. That’s $6,000 annually you could be saving.

That money could:

• Cover a month of payroll for a small crew

• Fund a targeted local ad campaign

• Upgrade your tools for faster installations

• Pad your emergency fund for slow seasons

Even if you only cut your overage in half, you’d still free up $3,000—without taking on any more jobs.

Quick Checklist for Smarter Fencing Estimates

• ✅ Measure twice: preferably with laser tools or property-mapping software.

• ✅ Use a consistent estimating formula for all jobs.

• ✅ Adjust your overage percentage by material type.

• ✅ Confirm layout details with installers before ordering.

• ✅ Keep a log of actual vs. estimated material usage.

• ✅ Work with suppliers who allow returns when possible.

  
  

Final Thoughts

In fencing, profit margins can be surprisingly thin. Overestimating materials may seem like a small, harmless habit, but over time, it can quietly erode those margins. The good news is that this is one of the easiest profit leaks to fix.

By tightening your estimating process, improving communication between your sales and installation teams, and tracking your actual usage, you can stop leaving money in the lumber yard and start keeping more of it in your bank account.

Remember: accuracy doesn’t just save you money, it builds your reputation. Clients notice when you run a tight, efficient job site. And that professionalism can be just as valuable as the savings.

Next Episode: For Episode 2 in the “Mistakes That Cost You Money” series, we’ll tackle one of the most underestimated challenges in roofing: Forgetting to Account for Weather Delays in Roofing, and how it can quietly drain your profits.