Knowing The Pricing Game....

Joe@CBP

As I spend more and more time with Contractors, It is amazing how most, (whom I will say are very educated in the technical side of our industry), have no concept in the proper methods needed to price whatever service is being offered. You must never forget that you are not just mechanics. You are Business Men running a Business to be Profittable. It doesn’t matter if you are a one man show or if you run 80 men. You have to know your companies Financials in order to price effectively and make a profit that will not drive customers away and will still allow you to make a profit. It is the only way to be profitable – and it is the way that you should price every job.
The Adding and Multiplying of whatever your material costs are, are ok for a quick turnaround, however, you will not be able to run your business with any consistent improvement from year to year pertaining to your end of year profit. Guessing is not running an effective business. Know your margins.
Work Hard To Get Through This Recession And You Will Be In Better Place For Success.

J F

Jayrek

damn. I was hoping this was a how much question.

Yeah there are different prices for different jobs. Experience will educate you as to which jobs are the easiest and which are the hardest.(most time consuming)

rselectric1

Thanks for the tip Joe, however by virtue of the fact that the posters here are sharing ideas about business as well as the mechanics of their trade, I would encourage you to peruse the posts prior to identifying our "problems"

We could be surfing ****, but we're here.

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DaVinciRemodel

Not me I'm Surfing ****!

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ChrWright

An intro would certainly help. That, and a copy editor for your website. There are so many grammatical and spelling errors, I stopped reading after the second paragraph. If you're trying to connect with residential contractors, your boilerplate website gets an F.

Yes, I'm busting your chops a little... But if you want to be taken seriously as an expert, you'll have to do better.

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Christopher Wright, CR: President @ WrightWorks, LLC/President @ Central Indiana NARI, Named to the 2010 REMODELING Big50
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Indianapolis Kitchen Remodeling Contractor - You Can Get There From Here

Zinsco

If Joe was such a genius at building a profitable business he would be busy with his HVAC business and not spamming forums looking to teach others how to run their business.

How pathetically transparent. It's like those guys who will teach you how to make a million dollars in real estate, why don't they follow their own advice and get rich?

Joe is responding to the crash in the construction industry by attempting to exploit his fellow contractors. Very unseemly.