One of the two basic laws of estimating states that high estimates result in _____.

High estimates typically lead to decreased volume in business operations, particularly in the plumbing industry. When estimates are perceived as high, potential customers may seek other options that appear more affordable, resulting in fewer jobs being secured. This relationship is grounded in the principle of pricing sensitivity; customers often weigh the estimated costs heavily in their decision-making process.

In a competitive market, higher estimates can deter prospective clients from choosing a contractor, leading to a decline in the number of projects undertaken. Over time, this decreased volume can severely impact a business's ability to grow and maintain its workforce, as having fewer contracts can result in lower revenues and the potential for layoffs if the business cannot sustain its operations with the reduced flow of work.

In contrast, lower estimates may attract more clients and increase project volume, which could potentially lead to greater profits, provided that the cost of performing the work does not outweigh the revenue generated. Therefore, high estimates tend to create barriers that limit the number of jobs a company can secure, resulting in decreased volume.