New To US Need Some Advice.

BCConstruction

Well thanks for the extra replies guys. Been pricing a lot of work the last few weeks and so far some have liked my prices and some have just looked at me as if to say "are you joking!" i priced for a boat dock on the lake a few weeks ago and my price was a lot lower than everyone else's and the customer showed me the other quotes and they were all within about 5% of each other but I'm happy with the price i gave her but i will know better next time. I also priced for some rip-rap and gave the customer a price of $3000 for 40 tons installed and the other company's were all double my rate so again i will know better next time. It does seem that there is a fair going rate which customers are happy to pay for certain jobs and already i have lost a few jobs because i was to high. I like to keep a log of what other people charge for similar work just so that i know if I'm over charging or under charging. I have a lot more outgoings than some people doing the same job as me but i wouldn't try and charge more because of this. It's my choice to drive around in a 50k truck and buy all high end tools and trailers and if a guy does the same quality work with stuff worth 1/5th what mine is then good luck to him. It's always a good idea to be in the know about what other company's are charging so that you can give a competitive quote which at the moment i ain't doing to well as i don't have any clue what people are charging for the same work. In the UK we used to have a list of the other company's who done trim work and tiling and the prices they would charge for sq ft of tile or linear ft of trim so that we don't do our self out of possible profit. The same goes for our family's business that turns over $10+ million a year hiring medical equipment out to hospitals and nursing homes. You have to keep on top of what your competition is charging because before you know it you have been beaten by as little as 1% but it lost you the contract. It was easy in the UK as i had been in the trades for quite a few years and picked up what the correct rates were to charge and very rarely lost out on work to others. But it is handy when people give ya advice. Im still trying to get used to all the different terms for materials.

Skirting=baseboard
Coveing=Crownmoulding
Silicon=Chaulk
Tap=focet
and so on. That alone is hardwork.

J F

alright dude/man/whatever...use the FREAKIN' "enter" key every few sentences....for the love of god!!!!!

----rant over----

BCConstruction

Thats strange. I did but it compressed it all

J F

I've read your posts before, so I did think it was odd...

DavidC

I spent many years operating under what I thought was the going rate and can understand the mindset. The great master plan was to do it in volume, but really struggled with why it never worked. Got lucky just often enough to keep trying.

Then the lights came on and I got it. It is a great freedom to deliver quotes based on what your business really needs. As they say, there's no going back. I like to think that our current rates were basically taught by Michael Stone, fine tuned by Jerrald Hayes and strongly encouraged by Sonny Lykos.

Good post Mike, and excellent reading list.

Good Luck
Dave

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www.CookContractingLLC.com

BCConstruction

After you said that i checked my post count and i have already posted over 70 posts . Man i need to spend less time on here lol. I only been on here a week lol

J F

Better than being at the bar, no?

BCConstruction

You know what. Since moving here i dont ever goto bars. In the UK i would be out thursdays night, friday night, sat day time, sat night, sunday day time, and sunday night all that time in bars and clubs. Im glad to be away from it lol. I spend most of my time on line now so i dont know whats worse lol.

J F

well....welcome aboard here (again maybe)...and to the us...it ain't perfect, but no matter the bs, wouldn't ever want to be anywhere else, and that pretty much says it all....it's still fun to bitch though

Mike(VA)

BC, where in Virginia? You mentioned some lake work so that would have to be around Lake Anna, Smith Mountain Lake, or the reservoir on the North Carolina border.

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I EXPECT THAT SOMEDAY I WILL SEE THE FRUITS OF MY LABOR. IS IT SOMEDAY YET?
Clifton, Great Falls, McLean, Fairfax Station, Manassas, Virginia Renovation Contractor

BCConstruction

Hey Mike i work around the smith mountain lake area and roanoke city area. We got a house on the lake where we wakeboard so im starting to get more contacts in that area lately. It's just a trip with the truck and trailer from our house in roanoke and the roads are like the engilsh roads the whole way which aint good for a truck and trailer my size lol. tight and bloody twisty.

Mike(VA)

Great, thanks. I have been to SML only once and it was a 4.5 hour drive to the nearest part from Manassas. Ended up buying a waterfront house at Lake Anna. 1.5 hrs from here. Nice.

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I EXPECT THAT SOMEDAY I WILL SEE THE FRUITS OF MY LABOR. IS IT SOMEDAY YET?
Clifton, Great Falls, McLean, Fairfax Station, Manassas, Virginia Renovation Contractor

BCConstruction

Yeah you cant beat having a place at the lake

chilty

Well, we all had to start somewhere and some of us didn't have the luxury of being located in an area where many educational opportunities are located to learn the proper business methods. If you happen to be in such an area or don't have the resources or time to take advantage of what is available, then a rule of thumb I found practical for skilled trades people to use is to charge what the local car dealers are charging for a labor rate. Their rate covers the cost of the employee, his benefits, and overhead for the business. You should be able to be fairly compensated at this rate.

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Construction Information and Jobs
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BCConstruction

Thats a strange way to work it out but you could be right. From what i remember the dealers around here are all about the same at about $70 an hour but that to me sounds a lot of money. Im sure some people doing what im doing are chargeing this but i dont want to price too high. I wanna be right on the money.

J F

Right on who's money?

DavidC

Just remember that by definition a fair price is one where both parties feel like it's a good deal. The range is all over the board.

The real deal is to forget what anybody else is charging and figure out what it is you need to charge to run YOUR BUSINESS and meet YOUR GOALS. Where ever you end up just make sure your clients feel it's money well spent and you will be a fair deal in their eyes.

Using the so called going rate or the rates of a completely different trade are suspect practices in my eyes. Most likely your rates will be higher than most similar business' when properly calculated. So then the pressure is to find out what makes you worth it in the eyes of the customer.

Good Luck
Dave

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www.CookContractingLLC.com

SNC

Do you have a Green Card ? If not get back on the boat. If you do disregard my comment and welcome.

BCConstruction

Nope i dont have a green card.

Darwin

Reason? Those companies are selling based on value-cost doesn't really play that large of a role in their client's decision making- when selling on value, reputation, commitment, and warranty. That's the biggest thing. Value. They charge what they charge because they've already established a cost to value commitment.

Contractors that sell on value never worry about hacks, illegals, etc.,taking their customers. Referrals and reputation are what matter most. They charge for that.