"Another One Needs Advice"

Jeremy Kriebel

One thing i am not good at is the pricing and business end of the company yet...Working on it though...My question is as follows.First a little description...We are remodeling a basement that was already finished..We are turning the basement into an office..Well it started as a normal job with an original quote..the first day on the job it went to time and material.To be honest i charge $70/hr for 2 guys..both mechanics I dont know if this is even fair or to high or low...could also use help with that..Well we do everything for these people including moving furniture a nd carrying boxes just to name a few things.The job includes staining chair rail and waines coating, painting, tile floor, electrical, custom bookcases, etc..There are alot of other things here and there...Also they add something almost everyday...My concern is that i should be charging less for certain aspects of the project, such as painting and staining..I just want to be fair to the people and also nbot cut my shelf short..I want to practise good work ethics in the process..So another question is on a time and material job when do you bill for, getting materials, or just working hours, also ndo you mark up materials...I am way confused and just want to do everything right..And this i s the place to find the answers..So far the members of this sight have been extremeley helpful..I usually sit back and read it all in!!!Sorry if this is so confusing...One other thing on a different subject, I just started accepting credit cards through a wireless machine and merchant account...Is this a good business decision...any help will be extermely grateful...Oh by the way, i have only been independent since Feb..STILL AN AMATURE

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" Hard Work Willy"

tinner666

If it seems that the customer thinks I'm their houseboy, I just casually mention that I'm 'On the Clock'. No matter what I'm doing. I charge $65.00 per man. It covers labor, ins, and other OH. Not even a real profit unless it hits 40+ hrs.
No idea about the credit card inquiry.

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Frank Slate Roof Repairs, Richmond, Va.

send_it_all

Hi Jeremy. I feel your pain. Pricing is a little scary when you are getting started. There is nobody to tell you how to do everything. There are books, but most of them seem a little vague. What I CAN tell you is that you are cheaper than most. Even if you have very little overhead, you should be able to charge AT LEAST $45/hour per skilled man. If you have an apprentice or unskilled laborer you are paying 10-12 bucks an hour, I would charge the customer $25-$30/hour or so for his/her time.If I were doing a T&M job, I would figure about $45 per skilled laborer, + your actual material cost and then mark it ALL up at least 25%...probably 30% then that's the customer's bill. You don't need to adjust your pricing for different tasks...too much to keep track of. If you have tasks that don't require much skill, have an unskilled person do that task and still make a profit from it, but don't short yourself. Keep in mind that you list yourself as a GC. I assume this means you are licensed and have all the proper bonding/insurances in place. If this isn't the case, you are more like a handyman and probably don't have much business charging the same as a licensed contractor. Licensed contractor's have overhead that most handymen don't have. That's why they charge for overhead. It helps cover licensing fees and insurance.

A lot of guys on this site don't like to help people figure out how to price jobs. I'm not an expert on the subject, but I don't mind discussing it. If you want to PM me about any of this, I'll chat with you all day.

Jeremy Kriebel

Thanks for the help...I hope im not considered a handyman..I think i have all the necessary paperwork.I figured my pricing from overhead, expenses, profit and etc..and i am trying to keep my prices down to aquire clients..unless this isnt a good idea either..like i said iam not good on the business aend of it...Also still learning how to market..thats why i recently started accepting credit cards, getting website designed..and so on..Pricing and doing quotes is always where i seem to stand still...I just need to get over the hump....Thanks again

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" Hard Work Willy"

KillerToiletSpider

If you rely on price to acquire customers, you will always have cheap customers. Develop a reputation, we are a plumbing sub, we are the most expensive one in the city of Chicago bar none, we do not advertise, and we turn down more work than we do because we can't man it. We have an established rep with some of the most sought after architects and designers in the city, this has to be your contractor, they always make it work, and when they are done, it is perfect.

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A flush is better than a full house.

Giovanni

Jeremy, make sure to use the fact that you accept credit cards in your marketing. People love to rack up rewards miles using their credit cards for remodels. I think that will also help customers say yes when the estimate comes in higher than they were hoping.

One thing to do is make sure you have a separate bank account to receive the credit card payments. If a customer ever disputes a charge the cc company will freeze that account and if it's your main business account your out o' biz until the cc company gets everything settled, in their own good time.

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What's the REAL cost of doing it on the cheap?

Giovanni