Small Job Estimating....

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Greg Swartz said:
No, $5000 in Material AND Labor...
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ok...very good...not busting nuts, but labor at "i'm an owner and I can't take a salary" rate? or labor at "this is what it would cost me to pay someone else to do it" rate?

I ask, because I constantly talk to guys who take $0 each week as regular pay, and anything left over after material, they consider profit...even though they have yet to take out salary, gas, phone, advertising, insurance, etc.
 
emahler said:
I ask, because I constantly talk to guys who take $0 each week as regular pay, and anything left over after material, they consider profit...even though they have yet to take out salary, gas, phone, advertising, insurance, etc.
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Yes but... in the early 80's heyday of doing new strip malls, and resturant buildouts I was doing just that and after materials, gas, phone, advertising, insurance, etc., I was still clearing 20-30 k a month. By the time I got smart enough to pay myself regular salary, the boom was past and way too many guys were getting out of the local and into becoming my competition. :-?
 
macmikeman said:
Yes but... in the early 80's heyday of doing new strip malls, and resturant buildouts I was doing just that and after materials, gas, phone, advertising, insurance, etc., I was still clearing 20-30 k a month. By the time I got smart enough to pay myself regular salary, the boom was past and way too many guys were getting out of the local and into becoming my competition. :-?
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believe it or not...i remember those days fondly.

but macmike, you know exactly of which i speak. if it's not material, it's profit.
 
Greg Swartz said:
Another job I bid at $12,000 I walked away with $7,000 profit. It was great, and the next lowest contractor was over $20,000. Had I have known, I would have charged $16,000...
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Why only $16,000?
Is the work you do worth that much less than the next lowest guy?

Why not $19,000 or $20,000?

Or better yet $25,000 and sell them on your company and the fact they would be a fool to do business with anyone else but you?

Only getting jobs because your the lowest price isn't much fun.
I hate it when I find out I got the job because I was the lowest price.

I don't feel I'm a very good businessman or salesman if I only get jobs because I'm the lowest price.

I have a friend that installs siding. I referred a guy to him and he gave him a price. My friends price was higher than the other estimates he had gotten. The guy told my friend that he was higher than the lowest guy so my friend lowered his price to match the lowest guys price.

The guy told me later that he would've had my friend do the job even if he hadn't lowered his price because he was impressed by the way he presented himself. My friend lost something like $800 dollars because he was afraid he wouldn't get the job if he didn't lower his price.
 
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emahler said:
ok...very good...not busting nuts, but labor at "i'm an owner and I can't take a salary" rate? or labor at "this is what it would cost me to pay someone else to do it" rate?

I ask, because I constantly talk to guys who take $0 each week as regular pay, and anything left over after material, they consider profit...even though they have yet to take out salary, gas, phone, advertising, insurance, etc.
Click to expand...

Believe it or not, that was after my material, and paying my hand, AND paying myself...
Greg
 
Things that make you go hmmmm.....

Things that make you go hmmmm.....

aline said:
Why only $16,000?
Is the work you do worth that much less than the next lowest guy?

Why not $19,000 or $20,000?

Or better yet $25,000 and sell them on your company and the fact they would be a fool to do business with anyone else but you?

Only getting jobs because your the lowest price isn't much fun.
I hate it when I find out I got the job because I was the lowest price.

I don't feel I'm a very good businessman or salesman if I only get jobs because I'm the lowest price.

I have a friend that installs siding. I referred a guy to him and he gave him a price. My friends price was higher than the other estimates he had gotten. The guy told my friend that he was higher than the lowest guy so my friend lowered his price to match the lowest guys price.

The guy told me later that he would've had my friend do the job even if he hadn't lowered his price because he was impressed by the way he presented himself. My friend lost something like $800 dollars because he was afraid he wouldn't get the job if he didn't lower his price.
Click to expand...

You know aline, your reasoning makes me think...

I was thinking $16,000 because I'm not out to put my kids through college on every job. However, at the same time, if I was $19K or $20K, why not. It's B2B and they're going to see the profit margin... not me.

And just because I'm way lower this time doesn't mean I will be next time... And they may go elsewhere...

Regarding the $25K... Woohoo!!!! Teach me how to sell it like that, and I'll give you the $5K above!

You guys rock!
Greg
 
over bid ?

over bid ?

Bid 4080.00 for basement that was gutted and only thing left was studs and wiring for outlets. Some of the wiring was not to code in the studs. HO wanted me to change out all outlets to white Approx 20. Put in 17 recessed in a drop ceiling with switching, add an outlet under some stairs. Co detector, reattached Smoke to ceiling. About 1/2 day of demo. Carpenter brought me in no permit. Add lighting in mechanical room Also upstairs bath. Move two vanity lights that are too low Up and move a GFI over or up ( sitting on vanity)
 
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