3000 square feet bicycle shop

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rob12013

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Location
durham nc
I don't want to scare this potential customer away
He hasn't got any plans yet and I maybe the one
Making the electrical plans/sketch to submit to the city
I figured to guys 1 week me second week $35 80hr and
help $25 40hr.$3800.00 labor plus materials with 20% mark up.
He buys the lights. What do you guys think will I get the
job I'm just starting out. thought I would
just be hanging ceiling funs for awhile- guess not!
Thanks you guys R great
 
i dont know your local market, but with prices that low how do you even pay your phone bill let alone things like insurance, business license, tools, etc, etc.

Also, remember this: When you are in business, the $35 (should be $135) per hour is not your pay. You need to take all the business expenses out of that before you pay yourself. So if you are charging $35/hr you are really only making $15/hr.
 
I'm certainly glad I don't have to bid against you! With prices that cheap there's no way you are insured, and licensed.I Feel sorry for your competition:mad:
 
"Ran commercial jobs after I topped out in 99 Al."

What is the going rate, any bennies, insurance,comp, bond,etc. PAYMENT Schedule!
Is this Romex, MC, EMT?
Service?
signs, outside lights, AC/heat, fire alarm,phone, intercom/computer,venting
Ceiling height? scaffold, lift, extension ladder
You doing the engineering for free, design build?
Permits,inspections
Do the rough in one week, trim in one week?
Temp. power?
 
OK fair enough I'm I correct to assume you guys are bashing me or is
this constructive criticism. This estimating is something I don't know
anything about I'm learning as I go and I'm licensed and insured I
only have a Limited licensed 40k. I've pulled a permit for all my jobs so far
 
rob12013 said:
OK fair enough I'm I correct to assume you guys are bashing me or is
this constructive criticism. This estimating is something I don't know
anything about I'm learning as I go and I'm licensed and insured I
only have a Limited licensed 40k. I've pulled a permit for all my jobs so far
Click to expand...

Ok, fair enough We'll take your word your licensed,,,,so the conversation now moves from bashing to constructive criticism. Your rates are too cheap. I understand wanting to get a new customer. It's hard. But you HAVE TO ESTABLISH your bottom line. Nobody on here can do that for you since we don't know your operating cost. Establish a bottom line, bid to that, and if you lose the customer because of that bottom line,,,,it's better to lose a customer than your business
 
Basically take all your overhead expenses including "hidden" expenses like your truck depreciation, health insurance and 401k contributions come up with a total. Then figure how many hours you think you can bill per year. A 1 man company often can only bill, or get paid for, about half the time spent working. Then decide how much you want to make, do the math, and come up with an hourly rate.
 
rob12013 said:
OK fair enough I'm I correct to assume you guys are bashing me or is
this constructive criticism. This estimating is something I don't know
anything about I'm learning as I go and I'm licensed and insured I
only have a Limited licensed 40k. I've pulled a permit for all my jobs so far
Click to expand...

I think the guys want to warn you that throwing deck chairs off the ship, will not prevent it from sinking.

1- You may want to find your break even cost of doing business, and then adjust your rates

2- When your in business everything has a cost, including your time, if you want to give away some job layout time, get a signed contract with a nice deposit amount first.

3- When you hire employees, your overhead skyrockets, and you need to account for all their liabilities.

Welcome to the snake pit, we are here to help, as soon as you come up from the water!
 
I greatly respect you guys I honestly have to talk to my CPA. To be honest I'm so new at this my jobs just seem to buy the tools in need for that job. I believe I my have a go at this own my own business thing. I do want to make money. When I post I'll try to have more actual info and facts. I?m going to talk to some of my old bosses about the bottom-line, if this guy wants to do this bike shop
Thanks
 
The idea is to make the most money with the least amount of work, not how low can I go to get the job.
That being said, I know it's hard when you start up; got to eat.
You do as others have said, need to take all your bills, of the Co. and health insurance, retirement, truck, maintenance,
etc. and at least divide by 2000hr.; then take workers pay plus insurance, comp, etc. add profit to it, add a percentage
for new tools ~2% of total to each job; then add profit for the Co..
There is a lot more but this will get you started in the right direction, talk to a CPA also search here as this has been gone over in great detail before.

With no print how did you come up with any price? I have found what is talked about isn't what is needed or wanted
when the talk turns to money. If you quote to someone Ohh about $3800 to $6300 all they here is $3800.
With your $3800 I think $7600 will be closer.

But I have been high on bids and lost the job; cost to Co. the time to quote the job, cheap. Getting work with little or no profit, expensive, you could have been working on a job making profit if you were not stuck in that dog of a job.

Good luck!!
 
rob12013 said:
if this guy wants to do this bike shop
Click to expand...

You really can't give a guy a good enough price on the electrical to where it becomes the deciding factor for opening a business. It takes a good bit of money to open a business and they either they have it or they don't. The worst mistake you can make is to get involved with someone trying to open a business and doesn't have enough money.

I once did a restaurant for a lady that ran out of money half way through but luckily her husband was willing to cash in some CDs to finish the project. She had no idea how fast the money would go when she started a business. It happens a lot.

If he has the money then let him put it out for bid. Your price doubled will look pretty good when compaired to others. ;)
 
rob12013 said:
OK fair enough I'm I correct to assume you guys are bashing me or is
this constructive criticism. This estimating is something I don't know
anything about I'm learning as I go and I'm licensed and insured I
only have a Limited licensed 40k. I've pulled a permit for all my jobs so far
Click to expand...

no bashing just shocked...the hourly rates are not even journeyman labor and taxes..where is the over head and profit at..You also do not want to be designing electrical systems for free..that said you design the install plans and then he uses them on the bid and someone else gets the job..you designed for free then.
 
cschmid said:
no bashing just shocked...the hourly rates are not even journeyman labor and taxes..where is the over head and profit at..You also do not want to be designing electrical systems for free..that said you design the install plans and then he uses them on the bid and someone else gets the job..you designed for free then.
Click to expand...


The other issue is if he calls it design then he will need E&O coverage, which may be difficult to get with having plenty of experience and a professional engineers license, a lot of contractors saw design build on ads and thought they could just do it. layout a floor plan, or do some basic calcs, but not electrical design in the true sense.
 
Here in NJ, our license does not give us the right to "design" especially commercial and industrial. Residential...there is some flexability. I would be carefull about how far you are going to go into the design aspect.....I would just stick to the installation. But hey, things might be different there with what you can do and can not do.;)
 
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