New To The Business

AMI

I have been installing cabinets and doing trimwork for a long time. I recently went out on my own finally and finished all the licensing and insurance and filing for my corporation and have that all finished but now the problem is i dont really know what the average going prices are to bill people for what I do, I've always just gone and done the work and got my salary at the end of the week but never knew anything about pricing..... Im in north florida and was wondering if anyone could help me out or point me in the direction of what i need to do to resolve this problem. Thank you

Five Star

just take it on a job by job basis, you will win on some jobs and lose on others, figure out what you over head is and then figure out how much you need to make an hour or day to stay alive!

you,ll be alright good luck

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sausagefingers

The best way I have figured out pricing is, how long is it going to take, and how much do you need to make? Now this can TOTALLY bite you in the butt, since some things take a lot longer than expected or you find out later that other people charge a lot more than you did. Then another thing is how material is handled. Do you want to pay for it, then mark it up some for each job. Or just have the customer pay for it and get it delivered where you don't have to even worry about it. I've found that people like to pay for their own material, that way they don't think that they are going to get ripped off, and might be more likely to give you the job if they feel a little safer about the whole situation. But actual prices, I can't help you with cause I'm in Oklahoma, and I'm sure we're a LOT cheaper than most of the country.

Gus Dering

I can understand being uncomfortable with putting a number to a job and live on whats left over. Been living that way forever.
What I don't understand is why it seems hard to figure out the number. when it boils down to grade school math.
After a while you will figure out how to price a job on your own. It is going to take time. Look at it as an education that you get paid to learn.
Here is a little hint to let you know when you hit the number perfectly. The owner should have a reaction that shows a little pain but not too much.
If they jump at it and ask when can you start, you should consider your number too low.
The ol, I'll get back to you. You went too far.

This stuff ain't easy. give it time

Five Star

good point gus we all learned that way,just what ever you do dont get to attached to the home owner and let them make the # for you. if you want to budge alittle its okay but dont let them tell you how much something should cost.

if you get one of those run for the door!

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SLSTech

Man you guys are being real nice - fair enough

As others have stated, you know how long it should take

Take your old salary before taxes & add at least 15% to it for SS & Medicare. Add in all your OH, Profit / Rainy Day Fund, & probably double that figure to account for down time, wasted time going after sales, etc... There are a lot of calculators out there to help you determine an appropriate hourly rate.

After you have figured out your hourly rate multiply it by how long you think a project will take you & add any materials you require (plus a % to cover OH & P for handling the materials)

There is a few good threads on here - business section on Pricing & estimating, Wag or Swag, etc... Search is your friend

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KMRLLC

I went out own my own the beginning of last year... It has been the best year of my life and I wish you the same success and happiness.

I was a project manager for 10 years prior and estimated/bid hundreds of projects, negotiated contracts with owners and subcontractors. This background helped me out a great deal in bidding projects on my own.

I now am a one man show that does the estimating, bidding, and the actual install.

First things first... I would try and get an account set up with a GOOD lumber supplier in your area. This way your materail can be deliveried to the job (with many accounts they will delivery it for free) and you will not have to waste time (which equals money) at Home Depot or Lowes trying to dig thru their bananna lumber for something you can work with. Also with having an account you will have typically 30 -45 days to pay for the material.

Second, when estimating the project I will literally go thru the job in my head and estimate how many hours each phase of the job with take. For example If I am running trim in room I will try and figure how long it will take me. Then If I am painting that trim I will estimate that time. (6 hours to run trim, 1 hour to prep for paint, 3 hours to paint.. total of 10 hours).

For numbers.... I markup the material 15% and right now... depending on the work I charge between $40 - $55 an hour. A lot of the time I will figure the entire job and then look at the overall number. A lot of the time I think "there is no way that homeowner will pay that" If so I will back my number back a little (a lot if I need work... If my plate is full I will let the number fly). Once you get a couple of projects under your belt you will know if your number is good and the butterflys will go away (but not always).

Finally... If you do GOOD work and I am sure you will..... TAKE PICTURES and put them in a portfolio. Pictures speak volumes and if you do good work people (or at least people you want to work for ) will be willing to pay for it.

Good luck..... This may not be the right way but this is how I do it. I hope this helped.

jarvis design

That's how I have been doing it for years. If you are good with spreadsheets, you can create an estimate template where all you have to do is input work description, hours to complete, materials, etc.

Good luck with your new venture!

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www.JarvisDesignBuild.com
519-495-4062

KentWhitten

One of my favorite sayings

"If it was easy, then everybody would be doing it"

Sounds like Florida is a tough place to work also. Not sure if this is the scenario where you are at right now.

I have no problem going up to other subs and asking them straight out what they charge for what they are doing. We can give you similar advice, but locally, you're better off asking people on similar projects to what you are looking at for business in your area.

Prices around here vary dramatically within 10-20 miles

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If you correct your mind, the rest of your life will fall into place ~Lao Tzu

Custom Cabinetry - Portland, Cape Elizabeth, Scarborough, Kennebunkport, Yarmouth, Falmouth, Cumberland, Ogunquit, Maine

Salmon Falls Cabinetry

Gus Dering

Anyone else notice the OP has not even responded to all the good advise.
Maybe thats one reason this type of post gets hammered on so hard in other areas of the site.

What up AMI?

Tom Struble

think he went to see if he could get his old job back?

loneframer

There is two ways to look at a low number.
1. This guys a d-bag, underbidding because he's starving to death.
OR
2. This guys a D-bag, underbidding because he is efficient, skilled and on top of his game.

The low number isn't always the bad number. My crew used to put up a 22'x 56' duplex up about a week faster than the competition and do a better job, because we were experienced and efficient. When you can bring a job in 25% faster than the competition, you can beat their number and still make better money.
My point is you can't base your number on everybody elses number, you have to base it on the numbers that work for you.

AMI

sorry took so long to respond, I appreciate the advice

VitoFromNJ

I have found that, saying oh sure I will do that, or I am gonna add this..

And really doing it.

Comes back to you and makes you look good.