Just starting up as contractor and could use help on where to begin with low budget

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So the supply company may be hesitant because of the failed business you had previously. See if you can start off with a maximum $3,000 or so a month and slowly build it up. I started years ago at $2,000 but since I paid my account as soon as I got the statement they never questioned when I went over. I never had a problem as time went on my account has been as high as $50,000 but I don't believe I have a limit because they know I am good for it.

Show them what you can do and show your willingness to pay immediately. If they see you are late and are having trouble then they will never increase your account. The trick here is to make sure you have accounts who will also pay promptly. Don't overdo the spending by buying in bulk and having it sit around for years. Buy what you need and you will see soon what items you need to stock to save you time.

When things were crazy here with new houses going all the time I would 10,000 feet of 12/2nm and 14/2 nm each month because I knew we would use it all, Now we use a bunch when we get a new home so I don't usually buy bulk unless we have the new construction jobs.

Good luck Chad and congrats on passing the masters...
 
Working today so just reading short bits on breaks. At first I was looking for a inventory list to stock a service vehicle knowing the wide variety of options out there. Finding out a lot more good refreshers. I feel like I have been locked in the factory for awhile. Good thoughts from everyone. Thank-you


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Yeah, supply houses don't actually offer credit. I don't know what they call it, maybe a rollover account, but at some time limit, 30, 60 90 days, they want their money. Anything longer than that, they may tell you they don't offer credit or that it starts to look like bad debt. They will happily take Visa and you may be able to get rewards, points.

Banks are the same way, home mortgages, more is better. Financing for trade labor contractors, they probably don't do. They may lend at the layers above you, for the nursing home or strip mall you wire, but not lend against your ability to get paid for that wiring.

I like Bank America. They have the easiest to use online system and have been treated pretty well by them. When you want to talk to a real business banker, I give Wells Fargo the nod. It was a surprise to me how much of the business they wanted.

Debt carried by the business will probably be on a Visa card and in unpaid invoices.
 
My advice is this, there are no jobs that are too small, there's only small minded contractors. Someone mentioned that anyone can put in a receptacle, but many won't because "it's not worth their time to leave the shop for less than $500", maybe, but maybe the next job that customer has is a $5000 job and their gonna remember that you didn't want to work for them. I went to replace a light fixture in a business one time that 5 contractors had said no to and ended up spending almost two years working for these guys. Made a TON of money.

I knew I was on the right track when someone called me and said they needed something small done and I really didn't have the time, I told them it would be at least two weeks so I'd give them the number of another guy, their response was, "we'll wait for you."

The thing with small jobs is this, one big job, one customer, ten small jobs, ten customers. The math is pretty simple.
 
cowboyjwc said:
My advice is this, there are no jobs that are too small, there's only small minded contractors. Someone mentioned that anyone can put in a receptacle, but many won't because "it's not worth their time to leave the shop for less than $500", maybe, but maybe the next job that customer has is a $5000 job and their gonna remember that you didn't want to work for them. I went to replace a light fixture in a business one time that 5 contractors had said no to and ended up spending almost two years working for these guys. Made a TON of money.

I knew I was on the right track when someone called me and said they needed something small done and I really didn't have the time, I told them it would be at least two weeks so I'd give them the number of another guy, their response was, "we'll wait for you."

The thing with small jobs is this, one big job, one customer, ten small jobs, ten customers. The math is pretty simple.
Click to expand...

I agree today we drove 50 miles one way to do two smaller jobs at our other business and ended the day doing 4 jobs. They may have been smaller, but add up and next year they will be returning customers.
Whatever it takes to keep the wheels rolling and food on the table for the family. One weekend left then security of being an employee with a weekly wage turns to open doors to an unknown future.

Been on the computer a lot today trying to get a grasp of one of the supply houses web pages now that I have access. I am a bit surprised that the stores like Home Depot can still do better with their pricing on wire. I want to be loyal to the suppliers, but asking myself how I can tell the customer my wire is better than theirs if I charge them more. Wondering how you guys deal with this?



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cowboyjwc said:
The thing with small jobs is this, one big job, one customer, ten small jobs, ten customers. The math is pretty simple.
Click to expand...

The math is simple, if you go to calls you can't make money on you will be bankrupt.

The number of small jobs that lead to big jobs is very small compared to the number of small jobs that lead nowhere.

If nothing's going on, sure take the small stuff, on the other hand I would not make that my primary goal.
 
Family man said:
This sounds very reasonable, and I agree wholeheartedly that being on the same page is priority. Thx
Click to expand...

so, didja do the biz plan?

my spouse and i were looking today at where we want to be
at, and when. next october, she retires. her company is relocating
to alpharetta, georgia, and we wish them well. she's getting a
retention bonus to stay till then, so we looked at where we will be
a year from this halloween.

house paid for.
all upgrades on house, including roof, done and paid for.
two new vehicles, paid for.

none of that was on the first biz plan we did. i had a bunch of
goals for 12-31-11. they were a stretch then. they look silly now.

the first biz plan... almost 5 years ago.

to have ten new customers by 12-31-11.
today.... i have none of the same customers i had then.
the phone rings with people who got my name from someone,
and i don't even recognize the name of the person they got it from.

to have A/R below $1,000 by 12-31-11.
today.... if my net 30 A/R is below $30,000 i freak out, thinking the well is running dry.
this is the single biggest shift in perception i've had as a result of ellen's material.

to have $2k a week net taxable by 12-31-11.
today... will peg tax table.

to repay mother in law $20k debt by 12-31-11.
today... debt free except for mortgage.

and the long range goal, set 5 years ago, of paying off the $288k mortgage by 12-31-16.
today.... $200k left. looks doable by the end of the year.

i'm gonna put a fair bit of credit for this on that silly little business plan i did 5 years ago.
$10 well spent.

an honest, written inventory of where you are at, and where you want to go is essential.
something happens between the pencil and the paper that doesn't happen between my
mouth, and someone else's eardrum.

good luck with your enterprises....
 
Family man said:
I agree today we drove 50 miles one way to do two smaller jobs at our other business and ended the day doing 4 jobs. They may have been smaller, but add up and next year they will be returning customers.
Whatever it takes to keep the wheels rolling and food on the table for the family. One weekend left then security of being an employee with a weekly wage turns to open doors to an unknown future.

Been on the computer a lot today trying to get a grasp of one of the supply houses web pages now that I have access. I am a bit surprised that the stores like Home Depot can still do better with their pricing on wire. I want to be loyal to the suppliers, but asking myself how I can tell the customer my wire is better than theirs if I charge them more. Wondering how you guys deal with this?
Click to expand...

For residential work, Lowes and HD are better than supply houses on things like wire, coverplates, switches, receptacles, cheapie discos, even tools. The internet is better for stuff like UC lighting. Breakers are a toss-up. For a small business that does mainly residential work, you might be better off initially with a big box credit card and do supply houses just for the bigger ticket items.

All materials have mark-up; just because the customer can go to HD and get a roll of 14/2 NM same as you doesnt mean they did so: you went there (or a supply house) and spent your time and money. About the only thing I prefer the customer buy is lights and ceiling fans; just make sure that if they buy a programmable, remote fan and light kit, or complex chandelier, that you charge the appropriate labor for assembly.

Price shop! Look at the difference in prices on 4 60A non-fuseable discos:

https://www.amazon.com/Midwest-U065P-Non-Fusible-Disconnect-Switch/dp/B00JV3GHEK - $44

https://www.platt.com/platt-electri...tallic/Midwest/U065P/product.aspx?zpid=151920 - $25

https://www.elliottelectric.com/Products/Detail.aspx?c=U065NA1&v=MID - $16

http://www.homedepot.com/p/GE-60-Amp-240-Volt-Non-Fuse-Metallic-AC-Disconnect-TFN60RCP/100674085 - $5

Places like ebay have things like firestop often very cheap. Here's one such listing:

http://www.ebay.com/itm/25-Hilti-FS...156904?hash=item360589e428:g:~LsAAOSwbPxXPntt

I believe those are the 20oz tubes. FS-One is about the best firestop available. Works out to ~$2.50 per 10oz tube. Not expired tho close. That took about 2 minutes to find.
 
iwire said:
The math is simple, if you go to calls you can't make money on you will be bankrupt.

The number of small jobs that lead to big jobs is very small compared to the number of small jobs that lead nowhere.

If nothing's going on, sure take the small stuff, on the other hand I would not make that my primary goal.
Click to expand...
If you're not making money on a job, you're not charging enough.
 
Family man said:
I am a bit surprised that the stores like Home Depot can still do better with their pricing on wire. I want to be loyal to the suppliers, but asking myself how I can tell the customer my wire is better than theirs if I charge them more. Wondering how you guys deal with this?



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Click to expand...
Buy wire by the roll, sell per foot at Home Depot per-foot price (large markup), do not tell customer anything, if he asks show him Home Depot price, but most of the customers that are worthwhile to work for won't ask.
 
Just starting up as contractor and could use help on where to begin with low budget

readydave8 said:
Buy wire by the roll, sell per foot at Home Depot per-foot price (large markup), do not tell customer anything, if he asks show him Home Depot price, but most of the customers that are worthwhile to work for won't ask.
Click to expand...

I placed my first order today and I am probably going to buy 8 and over at Home Depot, but supply house will cut to length the wire at be very close but with 8 and above. Will get all gear and pipe from supply house. The salesman mentioned 25% mark up. Does this sound reasonable?


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Family man said:
I placed my first order today and I am probably going to buy 8 and over at Home Depot, but supply house will cut to length the wire at be very close but with 8 and above. Will get all gear and pipe from supply house. The salesman mentioned 25% mark up. Does this sound reasonable?
Click to expand...

20~25% is normal for a wholesale house.

i strongly suggest you develop a good working relationship with
an independent wholesale house. i wouldn't have been able to
accomplish much of anything at all without mine. i owe him a lot.
he's trusted me with an open account that has gone to $200k a
couple times, on a handshake.

i went in there, and took about $3k worth of lighting controls,
and he just snapped a photo with his camera of the box of stuff,
and said to email a list of what i took.

see how well that works at home depot.
 
Just starting up as contractor and could use help on where to begin with low budget

Fulthrotl said:
20~25% is normal for a wholesale house.

i strongly suggest you develop a good working relationship with
an independent wholesale house. i wouldn't have been able to
accomplish much of anything at all without mine. i owe him a lot.
he's trusted me with an open account that has gone to $200k a
couple times, on a handshake.

i went in there, and took about $3k worth of lighting controls,
and he just snapped a photo with his camera of the box of stuff,
and said to email a list of what i took.

see how well that works at home depot.
Click to expand...

I do see that they have a lot to offer, like the salesman was saying if I gave him a layout of the building I am quoting to change out their lighting they would draw up a layout and give me a material quote for a free service. I definitely do not want to offend them. I just have trouble right now charging markup on wire that I am paying more for then the customer can get it. Not sure if I show my loyalty if they would consider a additional discount. We are in this together in their mind the big box warehouse is a competitor against the contractor and them. I do believe everything boiled down the supply house has got our back more then Home Depot, or the others. Close to $25 on 250 feet is a bit though.


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Family man said:
I do see that they have a lot to offer, like the salesman was saying if I gave him a layout of the building I am quoting to change out their lighting they would draw up a layout and give me a material quote for a free service. I definitely do not want to offend them. I just have trouble right now charging markup on wire that I am paying more for then the customer can get it. Not sure if I show my loyalty if they would consider a additional discount. We are in this together in their mind the big box warehouse is a competitor against the contractor and them. I do believe everything boiled down the supply house has got our back more then Home Depot, or the others. Close to $25 on 250 feet is a bit though.
Click to expand...

that is why we flat rate price.

every time i've had a customer haggle on a price, and
i've haggled back, i've regretted it.

someone haggling out of the gate, i'll thank them for the opportunity
to quote their work, and move on. i had a guy last week grinding me
on my flat rate pricing. wanted $1,550 to become $900. i thanked him,
and dropped $1,550 to $1,450, provided i got all of them to do.

every single person who has ground me, i've never ended up getting the
work.

once you know your costs of doing biz from the biz plan, you may
find that as a one man band, to make a decent living, you need to sell your
hours for about $125, assuming you have little to no overhead, and you don't
want to live comfortably. that includes your profit from material. my first number
was iirc $128 or something like that.

so, at the end of a full day, you are looking at $1k net taxable. if you can
sell two days a week, and spend three building it bigger, it's a good start.

others will probably disagree, but if you are itemizing your material, and putting
down hours on the bill, you'll probably starve. i did.
 
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