Post Your Question For Michael Stone

Nathan

I am going to try and have some questions for Michael Stone's Chat session on 8/31/2006 prepared ahead of time so we don't all talk over each other in the chat room.

So, if you have a question for him please post it in this thread and we will bring them to the chat.

Thanks!

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Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

Grumpy

Can I get a free book?

hatchet

What does Michael think of the PILAO method of applying all markups to labor instead of total construction cost? Does he see a benefit in this in certain cases?

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Rich
WIT Construction Co.
Superior MT Contractor

Glasshousebltr

Who cut his hair man......?

Bob

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Bob

mdshunk

I'd like to know a little bit more about Michael Stone's area of expertise in order to forumlate a decent question or two.

mdshunk

Q: "I currently markup materials on a sliding scale. Nickel-dime items might get marked up 10 times, and $50,000 items maybe only a percent or two. This approach seems to be working well for me. Is there any merit to that method, or do you propose a better method?"

Ansel

I would contend, Michael, that a sole proprietor, might have the same PER PERSON overhead as a larger firm, or even a huge miltinational corporation. Put one guy in a well mantained, newer work vehicle, tooled to the teeth, with an in-home office, a PC, etc, and THAT gets pretty expensive, PER PERSON. With this in mind... what would be the national average for a mark-up? Have you ever taken a concensus? A creative way to market that mark-up, in todays era of the big box stores sure would be helpful as well. Thanks.

realpurty2

I'd like to know how he suggests calculating overhead for multi-division companies that do not have the same operating expenses.

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Woman in a Man's World.

Melissa

This is the same time as the MTV music awards!!

scottstef

is there anyway we can get the transcript posted for those of us that will be unavailable to attend the actual chat?

sorry for the cross posting
thanks

Cole

Yeah I think we can do that, right Nathan?

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Floorwizard

Are you the same Mike Stone from Queensryche?

seriously, I would love to read what was said.

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"in 20 years you will regret more what you did not do than what you did"

Nathan

yea, we will post the transcript after the talk.


WE NEED MORE QUESTIONS THOUGH! Thanks.

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Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

Double-A

Michael, there is a plane standing on a conveyor type thingy...

Sorry, I just had to. But seriously, in your book, you discuss not competing with others in your area in the same business on price. We've discussed this on the forums, and some of the folks, especially the folks in Florida, are really having a hard time with the hacks and folks using imported labor.

What would you suggest to them to help them separate themselves and their companies from these low-priced folks?

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

realpurty2

How to factor expansion and growth into your budget...
Should it come from net profit? Be factored into the overhead as a percent? Should you set aside a seperate account devoted strictly to growth?

Everyone, including Micheal suggests to keep your overhead percent firm and use it faithfully, but we've ran into some circumstances where it makes small short duration bids seem too high. Is it better to adjust the overhead according to duration or leave it the same on every job?

When offering a benefit package for employees... does that cost get passed along as part of the overhead, taken out of company profits, or where does it come from? We've been just paying it out of company profit, but I am sure there is a better way. Suggestions?

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Woman in a Man's World.

Nathan

Last call for questions!

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Nathan

"He is no fool who gives what he cannot keep to gain that which he cannot lose." - Jim Elliot

realpurty2

best way to decrease overhead?

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Woman in a Man's World.