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#1 |
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Quality before quantity
Trade: exterior remodelling
Join Date: Jun 2007
Location: Ohio
Posts: 122
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The Cost Of Doing Business
I'm curious if anyone else has had to or is considering a higher than normal increase or increases in general to their pricing because of the steady cost increase of doing business.
Last week my cost of coil stock increased 8% and added to that the increase in lumber cost,gas and related increases I've decided to add 10% to my overall contract charge. Last increase I put up was 5%,8 years ago. I've tried to pay my guys more to help offset their costs,but my bottom line has suffered for too long and though I hate to do it,it has become a necessary evil. |
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#2 |
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Pro
Trade: LI,NY designer, new homes, renovation work, concre
Join Date: Mar 2008
Location: Long Island, NY
Posts: 5,426
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Re: The Cost Of Doing Business
pass it on
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#3 |
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Licensed Electrician
Trade: Licensed Electrictian
Join Date: Feb 2006
Location: Middle TN.
Posts: 249
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Re: The Cost Of Doing Business
I always believe "You do what you have to do" to make it.
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Follower of Jesus Christ |
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#4 |
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Professional
Trade: General Contractor Commercial Facility Maintenance Services
Join Date: Nov 2007
Location: North Orange County, California
Posts: 59
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Re: The Cost Of Doing Business
Mark up as necessary and don't apologize for it.
You are paying more for everything and you have to pay your people more so they can continue to eat and live indoors. You may lose some customers to the bottom feeders. Usually those are customers you do not want anyway. |
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#5 |
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DavidC
Trade: Remodeler
Join Date: Feb 2008
Location: NNY
Posts: 1,917
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Re: The Cost Of Doing Business
We constantly update our materils pricing and deliver quotes based on current information. Lately we have begun enforcing the time limit by requoting with current pricing after thirty days if they decide to hire us at a later date.
We also have started to include fuel charges for each job. You do need to pass on the cost of doing business to your customers if you expect to have any for long. Good Luck Dave
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www.CookContractingLLC.com |
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#6 |
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Restoration Crazy
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Re: The Cost Of Doing Business
After doing my taxes this year and seeing "the big picture", I raised our prices over 30%. I'm also keeping close watch on material prices. I call the lumber yard for the latest prices almost every other week or as needed.
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Jason E Whipple, General Manager Historic House Restoration, Cincinnati, Ohio Facebook | Twitter |
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#7 |
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Pro
Trade: Siding, Windows, Roofing, Weatherization
Join Date: Mar 2005
Location: NH
Posts: 481
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Re: The Cost Of Doing Business
We adjust our prices probably 10 times per year.
If materials go up 5% we go up 5% Why should we obsorb a price increase? You must remember that the customers pay for materials, labor, admin, marketing, etc. WE DON'T We just handle the money. We do everything in our power to keep the overhead down but it's still way up there. (41.1%) this number does include owners salaries but it's still very high. We have already spent over $11K for gas this year. We need to make a minimum of 50% gross profit to be healthy. 42% just to survive this down time.
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Marc |
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#8 |
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Pro
Trade: Home Remodeling
Join Date: Dec 2007
Posts: 1,362
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Re: The Cost Of Doing Business
Let's see how high up more the sky limit can be.
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#9 | |
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Restoration Crazy
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Re: The Cost Of Doing BusinessQuote:
I'm seeing this on more and more quotes from Sub's, but I'm just not sure if I would feel comfortable showing this as a line item yet. Maybe it's something I need to get used to.
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Jason E Whipple, General Manager Historic House Restoration, Cincinnati, Ohio Facebook | Twitter |
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#10 |
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DavidC
Trade: Remodeler
Join Date: Feb 2008
Location: NNY
Posts: 1,917
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Re: The Cost Of Doing Business
Our added fuel cost is included in the bottom line cost. We only show that one figure to the customer, along with a very detailed job description. We don't line item anything for the customer to see.
I have no problem talking to the customer in very general terms about the rising cost of gas, materials, insurance, etc. They all seem to understand and it actually helps to cast doubt on the low bidder, as in what did he forget and will they try to add in suprise change orders to recoup later. I will usually follow up with - I don't see any increase in labor rates in the forseeable future. With that I'm hoping to illustrate that these other things are out of my control. Good Luck Dave
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www.CookContractingLLC.com |
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