$3500 In 2 1/2 Days

WNYcarpenter

Just did a porch repair a few blocks from my house for (not knowing) the parents of my brother's good friend. The kid has moved out, so I didn't know until he showed up...

My partner and I work for a high end construction company. Normally we work for wealthy vacationers and after Memorial Day we get slow because of the summer vacation season. We pick up odds and ends for the summer in town for folks with much more moderate incomes. We started on Tuesday, and finished today around 3:00. 56 hours, 26- 2x6x10, and 685 lf of t&g fir flooring. We didn't even break a sweat.

Today, the neighbors had a garage sale and at lunch my partner walked across the street to check things out. He came back to tell me the homeowner we're working for is being charged $6,000 for our work. With a little math we figured it's costing the company $2500....$35 per hour, and $500 materials. Combined, my partner and I make $30.50 per hour (not including the expenses for having employees). My partner was asked how much the two of us could do the work for, brazenly he told them half...I explained that he was out of line, and after a little thought he realized he made a mistake.

Having said that, my partner was still grumbling about how much money we made our company effortlessly...Like me, many folks need basic maintenance and can afford maybe one decent upgrade each year. Their biggest problem is when they call to have work done they get no response or they're put on hold for months. They can't afford to pay our rates, so it's tempting to do the work on the side and make in a weekend what I make all week.

My partner feels these folks are being taken advantage of and when I didn't have a problem he was confused....Sure we could do the work for half and with my contacts we could dominate, but being in middle management I see a little of both sides. With hacks and DIYers, my company has to meet the competition to pay me what they do. I wish rates would be higher so we get better bonuses and higher wages.

I hate making someone else money when I do the work, so I'd like to be working for myself soon. I want homeowners to be conditioned to the prices so when I'm legit I can make a decent living. It makes me sick knowing I made my company $3500 in less than three days...on a project contracted merely to keep us busy....but, if they can do it so can I.

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"I knew I lost my wallet as soon as I threw my pants over the fence". -'lil jarhead bro when asking for a wire transfer...

PressurePros

$3500 in three days is decent but it won't make any company rich. Your partner is truly clueless on what it takes to run a business and he was WAY out of line making the comments he did to the homeowner. Your cost analysis is typical of a person that also does not understand what it costs to run a business.

PS: How did you work 56 hours in 2.5 days?

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

Tom R

I'm guessin' he means man-hours . . .

Tscarborough

You can do it, and should.

Driftwood

POOR BABYS ,LIKE SOME CHEESE WITH THAT WINE ????

You could be in IRAQ ! The Marines are dying ,BUT THEY DON'T SNIVEL

Mike Finley

I'd think that your partner would be one of those guys who suddenly discovers after actually going out on his own that he was making more money before he went on his own.

On the other hand you seem to have a better understanding of the big picture. I hope if you go out on your own you do it without your partner.

POOLMANinCT

so you want to go into biz, to provide more affordable work to the community?????
a pricing precedent hs been set & you understand the backlog of work in you market. saddle up & send it home on pricing, and sell based on ability to expedite the work.....
jeez you can even charge more for the premium scheduling.

ray

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......Less with the jaw & More with the paw.....

Teetorbilt

Bottom line. Were the CUSTOMERS pleased? If so, let it ride.

Your partner sounds like he could ruin your business. Most business's have good days and bad days, the trick is to have more of the former and fewer of the latter. Business 101. Don't get emotional.

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You can't solve you're problems with the same level of thinking that created the problems.

Albert Einstein

POOLMANinCT

ie; you need more Goeszingas than Goesouttas

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......Less with the jaw & More with the paw.....

dirt diggler

ugh ... beat him with a lunchbox





two types in the world

those who dig the ditches
and those who say where to dig


(and the third ... who makes the money)

nadonailer

Your partner is a fool, and you ain't too far behind, junior.

Try looking at this another way:
$6000 (gross profit)
-$1200 (20% overhead costs)
-$2300 (your salaries plus a realistic labor burden)
-$500 (materials - you sure about this one?)
=$2000
-$560 (Income Tax @28%)
=$1440 (What your boss actually gets to keep)

$1440 for 3 days = $480 per day. That's for him taking all the risk and headaches while you get to go home every day at 3:30, nice 40 hr weeks, etc.. Sounds to me like you're getting a pretty good deal....

And you even admit that your boss is taking these low end projects just to 'keep you busy'. Sounds like he cares about his employees as well?

"but, if they can do it so can I" So go ahead then, what's stopping you? Hopefully your boss will read this post and fire your whiney ass anyway

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"History does not long entrust the care of freedom to the weak or the timid”.
Dwight D. Eisenhower

North Country

You must have absolutely no clue how a business works. Why don't you go out on your own and remember not to charge more than your employees and material cost you, cause that is overcharging right? I do hope your boss finds out.

POOLMANinCT

dirt I must be all three of the two types....

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......Less with the jaw & More with the paw.....

Mud Master

Man, you guys are being harsh.

The guy was just trying to vent a lil'. I know I had no idea of OH&P when I was an employee. I knew a little more than most because my father is a self employed contractor of 28 years, but still I was to stubborn to ask for his advice.

But wishing he gets fired...whew!

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WNYcarpenter

Why are you in business for yourself?...I'm happy I made the company money...I wish I made them more! We look good, the owners were happy. I was working close to home saving fuel, nice weather...everything was perfect. I appreciate what the company does for me so I've been with them over ten years.

Something I'd like to know though...everyone here started from somewhere similar to my situation. I could have done this job myself for half, and made money. The breakdown of costs involved in running a business are legit. My post may have come across as winey, but I wasn't complaining. I was actually happy to know what people are willing to pay. I take A LOT of pride in my work and the services we provide as a company are the best around. At some point, I'm willing to bet, everyone who's self employed thought about the skills they had, ways they could do better business than their employer, and could see a better life working for themselves.

There's a certain degree of hipocracy here. There are multiple threads about starting on your own...The replies are for the most part negative. Side work is an absolute no-no to most... every employer cries poverty, (employees should thank god they're employed). We do the work in the field and when we see what there is to offer it's hard not to be infatuated with self employment....IF SELF EMPLOYMENT IS SO HARD WHY DO YOU DO IT? GET A JOB WORKING FOR SOMEONE ELSE!.... YOU'LL NEVER GET "RICH" WORKING FOR SOMEONE ELSE AND EVERYONE KNOWS IT! You're the winer!!

Are you a general because someone twisted your arm? Are you a general because you wanted a littile piece of the action? Are you a general because you sincerely care about the wellfare of your employees more than the bottom line...hell no! However long ago it was when you were sweaty and dirty you looked at how much you were making someone else, that motivated you. What makes me any different than you?

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"I knew I lost my wallet as soon as I threw my pants over the fence". -'lil jarhead bro when asking for a wire transfer...

joasis

The basic idea is quoting a number to a customer when it isn't part of their job to do so. I have been burned like this, and lost a good customer to just such a scenario.....well, like everyone has told you, it just don't work like you think it will......and when one of my guys even asks what a job is billing ( and that is none of their business, EVER), he is suspect...if i find out he talks to the customer, he is free after that to do it on his time, since he won't be on my time after that.

I had a kid recently work for me through one steel erection that has now represented himself as a steel building contractor....he has a welding machine, and a pick-up......now all he needs is insurance, customers, a highlift forklift, scissor lift or scaffolds, employees, workman's comp, credit with the steel company (or a relationship with one), estimating skills, money to operate on............on and on........

After working with us on one building, and all he could talk about was how easy it is........he asked the owner during cleanup what the building cost, and the owner told him.

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joasis

There is a way to go about it...what set off the flurry of comments is what you posted (content)...and when you get in our position, you will kow exactly why it brings on wrath......9 out of 10 guys who break out on their own fail....I'll be the first to wish you well, and hope you are in the 10% club that make it...with a positive attitude, and a little luck, you will get there if that is what you want.

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Glasshousebltr

Ok Winycarpenter ....I mean WNYcarpenter .....my bad.

Seriously though ....get away from your partner .....remember my words ....he's going to bring ya down and cost you some big bucks.......all of the statements above are true, he truly has no clue.

Sounds like your starting to think about this right ......but I think you'll find out real quick your GC didn't get that money for free. He worked for it and made pretty much what he was supposed to .....no add that to the fact next time he might not ......and you can easily see the conclusion.

When someone wants to cut my gravy, I tell em to take my losses as well and we'll have a deal.

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Bob

Glasshousebltr

He means 9 out of 10 fail.

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Bob

joasis

I changed it already...just like we alter estimates....shoot, they are only numbers!

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