đŽ REPLAY: Contractor Business Tips - What to Charge for Your Work
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- Äas pĆidĂĄn 8. 07. 2018
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Smart guy. Even accountants donât explain it this well. Thatâs the difference between someone that has his own business and someone who talks from books.
I argee
By chance found you on youtube and am so grateful right now my husband and i are in the midst of taking over his dads tile and stone installation company!
I started my business. And was not getting very much work started watching your videos and doing what you said to do thanks for all your help in the fight
Appreciate all the info I made the jump this year and started my own business only to realize I have a lot to learn everyday
I learn more in your sessions than the workshops Iâve attended. Thank you for sharing, I appreciate it.
Blessings,
I am from Australia thanks Mate u doing really good I m learning a lot from u I am in construction business from 8 years still learning .
These videos are great! Good info and motivating. I have been remodeling my own homes and doing a lot of wood working projects as side gigs but I want to get into the Remodeling business and these videos help a lot. Thank you!
Iâm so glad that I found your channel! Thank you so much for sharing your experience and knowledge! đđŒ. I had a cleaning business before I can see now that I made a lot mistakes in how to charge customers for the service. But lesson learned! Iâm starting a new business doing something else and I will make sure to apply every little bit of what you teach us here!.
I own an electrical contracting company. Been in business just over a year. Your videos are spot on and I am learning a lot from them. Thank you!
same big j, with three month experience now
Hiws it going
Iâm starting a Residential Electric company and Iâm really excited. . Been in the trade 15 years . Do you have any advice Big J ? Howâs your time as a business owner payed off or vice Versa ? Super interested in what you have to say and hope to hear from you. Great video by the way.
@@jaredpoling7097 know your numbers, take care of people, keep your word, work harder than your competition. Stay humble. We just hit 6 years and growing beyond anything I ever imagined. Good luck my friend
I love this video!! I came into this construction business by accident. My goal was to buy and sell homes. But due to positivity and kindness top notch people hire my crew (I have a 3 man crew. They're only Journey Men) I have not quit my day job (I work in the medical field). But with the money I've made with the construction (I make quadruple now). It was truly a blessing. Just by treating people with kindess, positivity, and letting them know they're going to be well tooken care of, they're happy.đ
lets splip the profit
@@shalajones8652 through this covid·19 epidemic the construction business hasn't been good lately, but working in the medical field still and with positivity, letting my patients know they're going to be well tooken care of, they're happy. Stay safe, stay healthy, God Blessđ
@@elizabethhartman3924 I'd love to hear more about your story? I've been so attracted to renovation/home improvement lately but have a completely different formal background (info systems)
@@burak9857 my story is definitely interesting, but it's what's coming at me I'm wanting to follow through. A man asked me the other day (good, secure man) if I know about ground-up apartment construction (wants me to be on his team). It's a 9M construction project. I wish I could tell him yes, I'm asking this "construction fight" guy for some guidance, but nothing yet... *waits*
đGod doesn't do accidents
You are awesome and very helpful. I just found ur video by accident and I already watch a bunch of them.
I'm so glad I found your channel you are the best
Earned another subscriber. You break it down super easy. Thanks a ton man!
Exactly what I needed. Thank you!
The wife of new businessmen wanted to be as supportive, and your videos are easy to understand and are great motivation
This actually makes since. Compared to most of the how to bid a job videos. Thanks
Thanks for the video Tom!
T& M note -charge service fee for showing up . Drive time service truck slash coordination and dead time for less than 8 hrs of work creates higher overhead or non productive time . You can charge a half of service fee per 8 hours of work for larger jobs that are several days, on their project or per trip if it is a require trip . For example you need to do rough and finish stages of a job after other trades or what ever . Requires another trip scheduling and may not be a full days work. Gas loading up or purchasing of materials can take hours sometimes . Keep all that as part of the job hours or service fee. So in short you can use a service fee to charge for all the offsite labor and travel time. This way the customer can not argue you were only here for four hours why is it 8 or 6 or five hours . Itâs just a service fee... so if you have to make multiple trips out cause you are busy with other peopleâs jobs and your are âfilling in at their job...just charge half of a service fee per eight hours of work to be fair to the customer if You can not put in 8 hrs straight in their job. Works for me !
great stuff man ,thanks
Great info brother! I really need to dial in my overhead and figure out my costs better. Too much winging it right now
Damn, this is a great video! Thank you!
Here is the number one thing I learning from when I was in corporate banking. Hold capital. Build up a reserve of cash that will cover your overhead for at least a year. You can not rely on debt for this. Work to include pay roll in to that reserve before paying yourself if you can
Knowledge is power. Thanks for the info
Dude. I can totally understand this.
Great info, Thank you!!!
You are a legend, God bless you sir
You tell it like it is !!! #Motivated
Loving your channel! Thank you thank you thank you!
Bhai i wanna start construction buisness, will you be my construction partner
Just started a new business and waiting for my contractor license to be issued... been meaning to get on this overhead budget nailed down... great reminder and great run through! Thanks Tom!
I wished teachers had this passion and drive.
Very good job at explaining the subject matter well done
Totally agree on the hiring angle: have a bottom line, don't cross it. Period. Learned the hard way on this one: hired initially out of desperation, because too much work and hard to find workers in my area. But the price you end up paying, in terms of how much money you LOSE due to having the wrong employee on the job, and the cost to your SANITY, is so not worth it. Honestly, you'd be better off staying home and watching TV than working with the wrong people on your team. It's tough to wait for the right person when it's high season and you're desperate for help, but that patience eventually pays off.
Thank you for the wealth of knowledge
Tom you have helped me and my landscaping company so much. Much thanks to you and the valuable content you provide. Im 21 with a landscaping company going into our 2nd year in business this year. Tom your the man! Thank you brother!
Glad to help Ronnie. Thanks for watching man.
Thanks for the info.
U guys rockâ No! Youuuuu fknnnnnn ROCK! $$$
I thank you, and my family,
My employees thanks you...
you great Men .
Hasta la noche ! la cueva ! la bamba ..!
đ
thank you for your videos
Great teaching to grow your own business đ
I own and operate two small businesses, one of them is a contracting service in Hawaii.
Rule number one: donât think about starting a company for too long, if you have a great service idea, just get it started...people who think to much about a business idea often never start it. And start charging what you feel is fair for you and the customer.
1. Decide why you want to start a company
A. For the money?
B. To build and sell?
C. Freedom to be your own boss!
D. Yadaaa yadaaa etc...you get the idea.
2. Based on what you want your company to do, you can calculate what the market charges, and what you can.
3. Constantly ask other contractors what they charge, every one you meet, doesnât matter what field, you want to know what the market charges all around.
Youâll get better at pricing with experience. One more good tip is: âdonât over finance your field of work, you definitely want to take advantage of financing and business loans, but donât take too much for your service.â Only finance what you can guarantee back in one year...so if your net (profit after losses) profit is going to be less then the loan you want then leave it alone. If my business brings in $2.5m per year then I wonât take more then $2.5m worth of loans in that year. Obviously, you donât have to pay your loans back in one year, but at least you have the money to cover your loans if they default.
Good luck Groms!!!
Thank you for taking your Time and sharing your experience
Good knowledge, wish more people saw
Great video! Thanks for making it clear and simple
Glad it was helpful Gigi!
Thanks and god bless you!!! â€
Dude you're very helpful! Keep up the great work
Glad to hear it!
Smartest guy on the planet
thanks tom
Ren here .Got it boss thank u sir.preciate your time boss
New Subscriber! đȘđŒ
Thank you for this!
Glad it was helpful Philipp!
Don't miss Contractor Fight Night at www.thecontractorfight.com/fightnight
Came to YT to try to learn how to grow my GC company thatâs blowing up with work but saw this and it (and your other videos) are incredibly helpful.
How do you suggest calculating this when you have numerous jobs that pay subs/1099 ICâs? Thanks man!!
I could have used this along time ago.
Good stuff brother!
Thank you !
Wow! a lot of great information first video I watch from your channel Tom, I just recieved my c20 licence for hvac this is really useful. Is this a good method to use as an hvac contractor? What do you recommend as far as what to charge on service calls I yet have to figure out what to charge on a hvac system replacements and not charge the sidejob price anymore. I currently work for another company but will be quitting eventually
Just found your account, Thanks for all the content!
Thank you for watching.
Smart obedient workers
Hello my name is Joshua I just started my company and I love watching your videos they give great information and personal insights are always on point for me....you were saying about the 20000 how do you keep it there so do not dip into the pot...is that the base and everything else the growth?
Yes alot of guys don't know their labor and material cost of jobs , which is very surprising to me
I am 8n a town that is very cliquish, will only use.
I do finish carpentry, interior painting, trim, built-in, door and window remove and replace.
The state SBDC labels me as a finisher
I install cabinets and anything to finish the interior of house or business .
I have 8 referrals in my town all small stuff I do it and take pride in it
I have installed shiplap siding in few homes. Help turn an vacant medical clinic into a church. .
Just need bigger projects or will only be a hobby
The laptop on the left is a Goliath!
listening
This is exactly what Iâve been looking for! Thanks a lot. Is there any way you can make a video such as this and include how to bid with overtime?
What if you dont have any overhead? I guess i need to get insurance. For 1, but that would be it. I paid cash for all my equip and tools in the last 3 yrs
love your show give some idea how to handle it the running Company.
I've used this formula and now very confident.
Does that 50% add pm before tax or after.
I'm assuming after taxes because your O & P would no longer be 50% in pocket
Bad ass content man!
Thanks for watching!
Is there a time we can talk more in depth about my roofing and siding company
So what if you have 2 employees working at same project? Using the example above. $31.50 is for one employee. I would have to take $44.15+14.7 + (31.50Ă2) ?
Would this same principle apply for daily pay? Where I live guys prefer to be payed a day rate. If we work a short day they get payed half the day rate.
If this is a side hustle at this time, how do estimate the break even when you are not sure how many hours you may work?
Hey Tom have you ever made a video on how much to charge for materials or a system on how I can develop a percentage or multiplier? Thanks in Advance your changing the future of my family and i really appreciate you and your team more than you know!
If he really helped your family, i will be glad to meet you!
Sales Price = Materials + Labor X Markup. Markup = Gross Sales / Direct Job Costs.
Very helpful video, thank you sir. Semper Fi.
While hiring Bartenders. I learned to ask math questions. Basic math, but ask it quickly, 3x4, 12x3, etc. I'll ask 3 or 4 math problems quickly without telling them before i start. Why? Because i want to see this person problem solve, and see their composure under unforseen pressure. Can this person think, and problem solve? If yes, then i can work with them and train them as needed. If no. I cant trust that they will be able to handle the pressures of the job, and i cant be there to solve their problems all the time. Composure and Problem solving are my non-nego. Fit the questions to fit the industry. Pressure is the point. #enjoylife #tomereber #construction #projectmanagement
Love this info
Thanks for watching. Let me know if youâre ever in Manitou Springs.
I Sure will!
Great business principles! Thank you for the info, your blackboard will go a looking way. Will you be sharing a link to the calculator you're using on your computer to come up with your numbers? Thank you for emphasizing the non-negotiables when hiring. This mistake has bitten me in the A way too many times
*long way... damn autocorrect
It's difficult to be positive when you're not sure if you're going to get i didn't get paid for the last landscape i did they said everything looked good so the work wasn't the problem and i have similar landscape for someone else but i really don't want to do all of that work for free
What kind of camera do you use my man?
Itâs time for me to start making some moves. I ETS from the Army in 9 months. I want to start a marine construction company!
Go for it!
Boss man you have inspired me to be an entrepreneur good bless! im a 5yr drywaller and steel framer in atlanta wanting to become subcontractor any tips
Hey man do you have the workers?
YESSSS
4 years ago labor expense was around $25 an hour.
Today $50-75 an hour easily.
How do I contact you personally to talk about my business
Im new here! Enjoying your videos super informational. I donât know some acronyms being used.
An honest days work with an honest days pay.
Thenk brother you are đ
Thank you Milaim
You are very knowledgeable but let me ask you this. Isn't better to keep your Company small and keep your overhead low. The ones that do very well in my area are the ones that have a couple of people plus themselves and work from home. A lot of people are learning to stay away from the Big Companies. People are learning to find the Sub Contractors or even lower than that
Hi I need your help
can we get some more ads?
im 19 bout to open my garage trynna make a living
Glad to hear that
I'm about to start my roofing business but I don't know what to charge. I've always worked for someone, I don't know.
Call roofers to your house ask for a quote. This is the best way to get price for your area, different areas charge different prices.
A contractor tried to charge me 15K in accrued credit line interest that he incurred during the duration of my house build / construction loan. COVID and supply chain issues did affect the duration, and I bought extras, but there were never any terms or change orders served to me once and I paid all extras without question. The interest, I am not responsible for and will not pay - that's the cost of doing business. I feel this is extremely underhanded and trying to re-coup on inflation / pandemic losses. That's a you problem, not a me problem - I disregarded the last invoice and if it's pursued further, i'm suing to recoup all extras that there's no change order for. Some of you contractors need to realize the business end of it - as someone who's done millions in business, I have NEVER ONCE asked a customer to pay interest on extended time frames.
âđœâđœâđœ
Whatâs the best checking account structure to have in place for a special ty contractor ?
Request for a federal tax ID# from the IRS, once you get the paper work on your issued TID, go to your local bank to open a business acct. You can't open a business acct without a tax id#
Weâre going to start implementing the structure outlined in Profit First. Might be something for you.
@@cruzcreation20 *. EID
Yo Tom ur THAT fcking guy pal! Thanks
Thanks for watching!
You get what you pay for...
I get proving yourself however I've found too many times that what leads to the opposite of your 3 non negotiable a is changing pay plans...reducing percentage and commission ...
So many business operate this way. It's greed
Some business owners are greedy. Most havenât learned how to communicate and treat people.
How does this work with your 50% rule
This is just another way of finding your true numbers. 50% rule is a fast and incredibly simple place to start for those who don't know their numbers. As you learn more...you can apply this to get more accurate.
You pay the guys $25 an hour and charge the client $75 an hour per man.
You mean 700 not 800?
Just started my GC business and boy it's hard to find jobs even with good reviews. I bid on jobs, and that's where it ends. Can't figure out if I give too low or too high estimates. Hopefully this helps.
KOMEPCAHT did you figure out what was going wrong with you not getting the jobs I am in the same boat and about to sink and I do estimates and thatâs it
You most likely need a sales estimator. Itâs not about the price as it is about the person and how the Homeowner feels about you.
How would we contact you?
Shoot an email to help@thecontractorfight.com
Sorry, I see a hole in your thought process. The 42 an hour is based on a full month even though the job with 100 man hrs between three guys is not a complete month.
the 100 hour job is not meant to fill the month. Thatâs just one job that can be knocked out with a 3 man crew in a few days. Itâs on you to fill at least 480 total man-hours for 3 FT peeps. Now you got 380 to go I order to hit your numbers. If you book work for less than the 480 youâd have to charge more per man hour to recover your OH. đ€