Creating Estimates

Tallie gives you two ways to create estimates: use AI to generate a complete estimate from a description, or build one manually from scratch. Choose the method that works best for each job.

What You’ll Learn

• Creating estimates with AI assistance
• Creating estimates manually
• Understanding line items and pricing
• Assigning estimates to clients

Getting Started

To create a new estimate, click the New Estimate button on the Estimates page, or start one directly from the AI Chat. You’ll see two options:

Option 1: Create with AI (Recommended)

This is the fastest way to create a detailed estimate. Tallie’s AI will generate line items, calculate materials, and estimate labor based on your description.

How it works:

1. Click New Estimate and select Use AI
2. You’ll be taken to the AI Chat interface
3. Describe your project to Tallie. For example:
   • “Paint a 2,000 sq ft house exterior, two stories, needs power washing”
   • “Install 500 sq ft of hardwood flooring in living room and hallway”
   • “Rewire a 3-bedroom house, including new panel and outlets”
4. Tallie will ask clarifying questions if needed (like paint quality, scope details, etc.)
5. Review the generated line items and make any adjustments
6. Your estimate is ready to send

For a deep dive on using AI chat, see the AI Chat guide.

Tips for better AI estimates:

• Include square footage or room dimensions when possible
• Mention specific materials or brands if you have preferences
• Note any special conditions (high ceilings, difficult access, existing damage)
• Specify quality level (standard, premium, budget-friendly)

Option 2: Create Manually

If you prefer to build estimates from scratch or have a simple job, manual creation gives you full control.

How it works:

1. Click New Estimate and select Create Manually
2. A blank estimate opens in edit mode
3. Click Add Item to add line items
4. Fill in the details for each item:
   • Description - What the item is (e.g., “Interior latex paint - Premium grade”)
   • Type - Materials or Labor
   • Quantity - How many units
   • Unit - The unit of measure (each, sq ft, hours, gallons, etc.)
   • Unit Price - Price per unit
5. Save your changes when done

Understanding Line Items

Line items are the building blocks of your estimate. Each line item represents a material, labor charge, or service.

Item Types

• Materials - Physical products and supplies (paint, lumber, fixtures, etc.)
• Labor - Work hours and installation charges

Line Item Details

Each line item includes:

Optional Items

Optional line items let you offer upgrades, add-ons, or alternatives without committing clients to them upfront. They’re perfect for upselling while keeping your base estimate competitive.

How optional items work:

• Show on the estimate with a clear “Optional” label
• Don’t count toward the total by default
• Clients can select or deselect them when reviewing
• Only selected optional items are included in the approved total

To mark an item as optional:

1. Click the item’s menu (three dots)
2. Select Mark as Optional
3. The item shows with an “Optional” badge

When clients view the estimate:

They see optional items clearly marked and can toggle them on or off. When they approve the estimate, only the items they’ve selected are included in the approved total.

Great uses for optional items:

• Upgrades - Premium materials vs. standard
• Add-ons - Additional rooms, features, or services
• Alternatives - Different approaches at different price points
• Warranty - Extended warranty or maintenance packages

Tip: Offer 1-3 optional upgrades on each estimate. It increases average project value without making clients feel pressured.

Using Your Rate Sheet

If you’ve set up a rate sheet in Settings, you can quickly add common items to your estimates.

1. In edit mode, click Add from Rate Sheet
2. Browse or search for items
3. Select the items you want to add
4. Adjust quantities as needed

This saves time on estimates for work you do regularly.

Service Address

Each estimate should specify where the work will be performed. This is separate from the client’s billing address (where invoices are sent).

Selecting a Service Address

1. In the estimate editor, find the Service Address section
2. Click Select Address
3. Choose from the client’s saved service addresses, or
4. Click Add New to enter a new location

Adding Address Details

When selecting or adding a service address, you can include:

• Street Address - The main address line
• Suite/Unit - Apartment, suite, or unit number
• Label - A descriptive name like “Main House” or “Pool House”

Why Service Addresses Matter

The service address you select:

• Appears on the estimate PDF
• Carries over to the job when the estimate is approved
• Gets snapshotted on the invoice for permanent records
• Helps you and your team know exactly where to show up

If a client has multiple properties, selecting the right service address ensures everyone knows the correct job site.

Assigning a Client

Each estimate should be assigned to a client so you can send it for approval:

1. On the estimate page, click the Client dropdown
2. Select an existing client or create a new one
3. Client contact info auto-fills when sending the estimate

Adding Markup

Apply markup to cover overhead, profit, and business costs:

Setting Markup

1. In the estimate summary section, find Markup
2. Enter your markup percentage (e.g., 20%)
3. The markup is calculated on your materials and labor subtotal

Your final price will show the total after markup.

Markup Options

Tallie supports flexible markup configurations:

• Overall Markup - A single percentage applied to all items
• Category Markup - Separate percentages for labor and materials (useful when your labor margin differs from material margin)

How Clients See Markup

Markup is built into your line item pricing. Your clients see clean, professional totals without a separate “markup” line.

This means:

• Your pricing looks polished and complete
• Clients see the value of each item, not your margins
• Your overhead and profit are protected from scrutiny

Example: If you have $1,000 in labor with 25% markup, the estimate shows a $1,250 labor charge—not “$1,000 labor + $250 markup.”

Next Steps

Once you’ve created your estimate with line items:

• Edit your estimate to add scope of work, terms, and deposit requests
• Send it to your client for review and approval
• After the client approves, create a Job from the estimate to begin tracking the work