How Do You Price Jobs?

 
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Old 07-30-2007, 12:01 AM   #1
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How Do You Price Jobs?


I was wondering how you guys price jobs? When my dad price's job's he usually charges by two different ways depending what type of job it is. The ways are (1) how long he will take to complete the job OR (2) minimum charge of $300.00.
I would like to know for a few different reasons, that I will mention. The reasons being (1) I don't want to get into the mess that my dad gets himself into, (2) I would like to know what I should be pricing jobs at according to other contractors, (3) I'm going to College to become a General Contractor and I don't know if they are going to teach us how to price jobs and if they are I want to have an idea so I can be like first in my class (I messed up big time in high school and this is my last chance to make it), (4) My dad is giving me a painting job to do, its a fence and it basically going to be my contract so I get all the money, I don't know how big it is but he told me to charge whatever I think is reasonable. I don't want to overcharge and have problems getting my money but at the same time I don't want to undercharge.
I know that some tile layers will charge whatever the tile costs per square foot to install (ex if the tile cost 5 per square foot then they will charge 5 per square foot to lay). I know for people who install doors price the installation similar to the tile layers, they price the job just a bit more then double what the door costs just in case they damage it and have to replace it. I know that fence builders charge a minimum charge of "x" amount of dollars (which my dad's minimum charge would be $300 a day) when is less then "x" amount of feet and then anything of that "x" amount of feet would be somewhere between 18-30 dollars a linear foot.
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Old 07-30-2007, 06:43 AM   #2
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Re: How Do You Price Jobs?


Home tech remodeling and renovation cost estimator . Printed in Maryland.

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Old 07-30-2007, 06:45 AM   #3
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Re: How Do You Price Jobs?


That's WAY low, Dad's in trouble!
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Old 07-30-2007, 07:10 AM   #4
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Re: How Do You Price Jobs?


Look at my site for basic pricing that works for 'me'.
I've never been good at pricing remodeling and often lose money. Experience will tell you more than a book, though a book is a GOOD starting point.
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Old 07-30-2007, 03:08 PM   #5
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Re: How Do You Price Jobs?


If it's a type of work we specialize in we price by the piece. For example, roofing ans siding by the square. We know how many squares we can install in a day so we know what we need to charge. However if the job isn't "average" the price starts climbing.

Plus ALL jobs regardless of size start with a $150 mobilization fee. This fee is primarily for the office adminisstrative stuff that goes into bidding a job... ordering material, sending work orders, producing invoices and logging time sheets, etc...

Repairs are by the hour, weather we bid or bill T&M. However when we bid we always have to padd them for unknowns so we add in a couple extra hours. We make more when we bid than when we work T&M, but T&M and guaranteed profit. It just goes back to the old risk reward ratio.
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Old 07-30-2007, 03:26 PM   #6
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Re: How Do You Price Jobs?


Quote:
Originally Posted by Driftwood View Post
That's WAY low, Dad's in trouble!
Its quite low expecially when its like a whole lot of fencing. I've told my dad that he needs to charge more but doesn't. We did a 50 foot fence. He only charged them $600 for labor and then whatever the material was. My dad did a master bathroom in this house, the material was $5,000 and he only charged them $2000 for labor.

Quote:
Originally Posted by tinner666 View Post
I've never been good at pricing remodeling and often lose money.
My dad has a similar problem. He loses a whole **** load of money. Usually he under prices the labor portion. He feels that if he prices it according to other people pricing that he will lose the job.

I don't want to fall into the same hole that my dad has fallen into. When I am still single and living at home then its a different story I can chrage a bit less then everyone else (for labor) but you know when I do get married and start a family I can't be chraging very little money. So like I said I'd like to get somewhat of an idea not only so I can be better at college but for when I am working the field as well.
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Old 07-30-2007, 03:40 PM   #7
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Re: How Do You Price Jobs?


One of my salesmen said to me, "If I am going to be higher, I want to be alot higher to make them stop and ask why... If you are only a little bit higher they think you are doing the same thing but are overpriced." It works for him.
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Old 07-30-2007, 07:53 PM   #8
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Re: How Do You Price Jobs?


Going to school to be a G.C. Good luck! I hope you're not going to George Brown.
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Old 07-30-2007, 08:29 PM   #9
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Re: How Do You Price Jobs?


With any amount of luck in college they will teach you how to do buisness planning and financial literacy. These are things some contractors are fortunate enough to have learned correctly at one point or another, and for those that dont thier always wondering why they cant get ahead.

In order to know your correct selling price, which may and probably will be different than your competitors, you must know your own buisness costs and build a cost multiplyer from the ground up. You can also start by simply starting at a 50% margin, which is the cost of materials plus the anticipated labor and the burden for that labor, than take that total and multiply by 2 for a 50% margin, but it would benifit you most to really understand your buisness and see if you should be higher or lower than that. You should also have some realistic goals for revenue, personal income and profit.
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Old 07-31-2007, 10:22 AM   #10
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Re: How Do You Price Jobs?


I Myself use a 2007 one. I like to give the old ones to young guys starting out. 2001 price for N.Ca. Each subscriber gets one priced for their area.

solid board fence,1x6 cedar,72" high selling price $64.07 per ln. ft.
Same fence in pressure treated pine $38.53 Ln.Ft.
gate 72" high 42" with cedar $558.93 pressure treated $370.94

Johnny If You believe You can charge these prices ,You will , and You will get most of the jobs You price. If you dont You wont. I have no connection with this co. ,except I buy a book every 2 years,at full cost. I struggled for years.
I am able to pay everyone well, and live a good life. this book is Yours free including mailing. send Me an e mail. Dad sounds like a great guy. Kevin
PS we are a father son Buss.
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Old 07-31-2007, 10:52 AM   #11
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Re: How Do You Price Jobs?


Markup vs margin explained http://www.contractortalk.com/showth...=markup+margin
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Old 08-05-2007, 10:58 PM   #12
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Re: How Do You Price Jobs?


I personally never found the estimating books to be that accurate. It depends what type of job it is. If a small job is going to take me 4 hrs that is an 8 hr day to me and will be billed 8hrs x hrly rate. Some guys short change themselves with there laborer and dont charge there normal hrly rate. Thats stupid..dont negotiate yourself. If its a large job figure your expenses..all expenses and then add your profit...what ever you would like to make. The main thing is you know construction and you know your expenses and you make what you anticipated or more.

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