Going Rate For Install...

 
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Old 01-29-2008, 10:48 AM   #21
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Re: Going Rate For Install...


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Originally Posted by GoodHouse View Post
I believe Angus is on to something. People, companies, both want price points. Thats how all business is done. Every house, every building, that gets off the ground has a budget that derived from the "going rate" price points. Also known as the "average" price for the area. If building construction residential or commercial was done like floordude is describing the cost to build would be outrageous. Its just not practical. Its obvious your only strong market for floors are occupied residential homes but then again your a one man show so how could you move a household of furniture? Getting into your business is not really my point, my point is, people can preach all they want about no going rate but that doesnt mean it doesnt exist.

"One price fits all and going rates are for those misclassifying their employed workforce, as subcontractors.
Your going to need to determine your costs and what profit your business needs to stay in business, and that my friends is not just cash flow. I'm talking profits when all is said and done"

One price fits all does not qualify a business as a misclassification. That statement is so far fetched and off base. Your philosphy is basically this.... Since you might drive a 2008 dodge sprinter filled with the latest flooring tools followed by a trailer filled with the best flooring prep machines, you may have 100k invested in that set up. Then you might have a secretary, a storage unit to house your extra material. etc. So your overhead is high. Now the next guy has a 5 yr old used truck, used tools, no secretary and uses his garage. Now you both have insurance, licenses, references, and experience. You saying your price should be higher than his? Well your wrong, just because you decided to invest more in your business does not make you worth more in the marketplace.
To the same point you constantly state how theres no going rate because everybody has different ideals of what its worth for their business. The most important thing on any job for any person is time. Time = Money. So because one installer maybe be 50 yrs old and slower than a 35 yr old, the 50 yr old should charge more? Again this model for business does not work.

I fully understand the idea of selling yourself, image, product over the next guy as a marketing tool such as selling one car MFtr over another but at the end of the day there still remains an average price point.
Great post. Spot On!!
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Old 01-29-2008, 10:55 AM   #22
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Re: Going Rate For Install...


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Originally Posted by PrecisionFloors View Post
Perry some of these guys will never get it regardless of how you show it to em in simple terms.

A better analogy might have been other service work. What is the going rate of getting a car painted? Lets say you have a '69 Chevelle SS. Some could and would argue that it can be considered an investment as it has the potential to increase in value. Just like a homeowner should consider their home an investment, right?

So.
Do you take your investment to Earl Schieb and get a $199 special, complete with orange peel, minimal prep work, and overspray on the chrome? Or, do you take it to a well respected auto body shop that will soda blast it down to bare metal, pull every piece of chrome, align all the panels, paint the jambs, shoot 3 coats of clear, wet sand, and buff it out before handing you back the keys. I bet the invoice won't be $199.

Which type of business are you trying to be? If its Earl Schieb then I guess a one price fits all mentality will work for you and you can just pick up a phone book to find out what the "going rate" is. Hint: Its $20 less than the cheapest guy you called That should get you ALL the work eh.
You prove my point. Your first anolgy, minimal prep, minimal work equals less money. The second has more work, soooooo, more money. Funny how that works.
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Old 01-29-2008, 12:39 PM   #23
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Re: Going Rate For Install...


So Angus, Your costs and overhead, along with cash flow & profit, are exactly the same as the guy down the street?

AMAZING!!!


Your right Precision, They will never get it.

Basing your price on what everyone else is doing it for, is business suicide.
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Old 01-29-2008, 01:20 PM   #24
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Re: Going Rate For Install...


GOING RATE is an expression that means the cost of the average of suppliers of like products or services. The connotation is that the cost will be "no more expensive than the competition."

For goods, its possible to have this. For services, its less possible to have this. Yes, you can take an average, but that average exists as is only until one person raises their rates or goes out of business.

So, what is the "going rate" for a box of tack strip?

Now, what's the "going rate" to install them?
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Old 01-29-2008, 01:40 PM   #25
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Re: Going Rate For Install...


Floordude,
NO. My overhead is lower than the store down the way. So that can mean two things. One, I can charge less and have more room to negotiate. Or, I can charge the same and put more money into my company. There are always "in the ball park pricing". What you charge, and what the next guy charge could be completly different. But, there will be more installers in the middle of where you are (left field) and the other guy (right field). This is what you can call "going rate". Just because YOU need $1.00 a square foot to remove and replace furniture, does'nt mean the next guy wants or needs that much.
The original post ask what the going rates are. I'm sure he would take all the pricing into account, and formulate a price based on his area, economy, and what he needs to make a profit.
Again, the original post did not ask you for you opinion about running a business. He wanted to know where to start. A poster like that should be comended. They're at least doing some research before just jumping into it.
My advice, read the original post before you respond. Then, read it again. Too many times I have seen a ligitimate question being asked, only to be berated by some know it all who does'nt know anything about the person asking the question. And I am not singling you out. There are quite a few responders who give their 10 cents, when all they were asking for is 2.
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Old 01-29-2008, 01:44 PM   #26
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Re: Going Rate For Install...


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Originally Posted by Angus View Post
The original post ask what the going rates are. I'm sure he would take all the pricing into account, and formulate a price based on his area, economy, and what he needs to make a profit.
HOLY $H|T...there's another Angus out there!!!
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Old 01-29-2008, 07:39 PM   #27
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Re: Going Rate For Install...


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Originally Posted by Angus View Post
Floordude,
NO. My overhead is lower than the store down the way. So that can mean two things. One, I can charge less and have more room to negotiate. Or, I can charge the same and put more money into my company. There are always "in the ball park pricing". What you charge, and what the next guy charge could be completly different.


LOL!!!!!!!!!!!!!!!!!!!


Why argue, for the sake of arguing? You just agreed with what I have been saying.

Still sour, from the last time I busted your chops, about your mislabelled subcontractors??


Yes, Union installers have a going rate. They are also employed, not independent contractors. So your going rate, is based on prevailing wages and benefits, right?
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Old 01-30-2008, 10:27 AM   #28
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Re: Going Rate For Install...


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Originally Posted by Floordude View Post
LOL!!!!!!!!!!!!!!!!!!!


Why argue, for the sake of arguing? You just agreed with what I have been saying.

Still sour, from the last time I busted your chops, about your mislabelled subcontractors??


Yes, Union installers have a going rate. They are also employed, not independent contractors. So your going rate, is based on prevailing wages and benefits, right?
I agreed with you? Where?? Busted my chops?? You mean your misguided, incorrect rants? Huh. Guess you told me.
Who said anything about unions?? Just because YOU say someone is an employee, does'nt make it so. People like you will never get. So sad. You really are out of touch with reality.

Last edited by Angus; 01-30-2008 at 10:35 AM.
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Old 01-30-2008, 02:17 PM   #29
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Re: Going Rate For Install...


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I agreed with you? Where?? Busted my chops?? You mean your misguided, incorrect rants? Huh. Guess you told me.
Who said anything about unions?? Just because YOU say someone is an employee, does'nt make it so. People like you will never get. So sad. You really are out of touch with reality.


Yes, I know reality, in these trying times!!

The only control you have over a contractor, subcontracting labor, is if your going to agree and sign his/hers proposal/contract. PERIOD Is it done like that.... NO, not always. Most just have not been caught.

Which makes it more difficult for those trying to run a legit business, because the playing field is not balanced. Those exploiting their uneducated employees, labeling them subcontractors, when they have no clue what it means or takes to be a legal business themselves, and the cycle continues. If your practicing this, WATCHOUT!! Our government is in big time debt, and they are going to crack down on this illegal practice, or so I have been promised. From passive to aggressive, is what I was told.

It is all about control, and that is something you forfiet, when you subcontract out services.

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