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Is $85,000 Realistic For This Deck?

 
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Old 06-17-2018, 11:41 PM   #1
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Is $85,000 Realistic For This Deck?


Hi everyone, I recently ventured out on my own in the last year to start my own company, I’ve been building houses and decks since I was a teenager, but am unfamiliar with the numbers side of things, I am putting a bid together for a 23x32 (736 Sq. Ft.) single level square composite deck 8’ high, and a set of 3 steps 20’ wide landing on an existing patio, with timbertech tropical line decking, and evolution builder rail with the cocktail rail. I estimated materials to be $33,277 & labor with 3 guys at $13,702 and then added a markup of 81% for all overhead and net profit, and it came out to a total price of $85,033.80. My company is based in st.louis, mo, and I know no one will know what my overhead is or what profit I’m aiming for but does this price and markup seem standard? I saw the final number and was a little shocked myself...can anyone help me out?
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Old 06-18-2018, 12:42 AM   #2
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Re: Is $85,000 Realistic For This Deck?


81% is an intriguing multiplier. Have you been selling large jobs using this same formula?

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Old 06-18-2018, 05:08 AM   #3
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Re: Is $85,000 Realistic For This Deck?


Sub it to me for $75k and we'll both be laughing all the way to the bank!

Seriously, what kind of multiplier are you looking at here?
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Old 06-18-2018, 05:32 AM   #4
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Re: Is $85,000 Realistic For This Deck?


Tell us more about how you arrived at your 81% markup multiplier and maybe the answers will become clear.

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Old 06-18-2018, 05:33 AM   #5
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Re: Is $85,000 Realistic For This Deck?


Even $33k materials and $13k labor sounds steep, but I'm just a random dude online reading here...sooo...
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Old 06-18-2018, 07:25 AM   #6
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Re: Is $85,000 Realistic For This Deck?


Is that your last gig and you plan to retire on that?

You got $4,500 per guy. How long are you planning to build this deck and @ what rate you pay these guys?

You better check your numbers cuz it sounds like you in LaLa land but if you can get $115 PSF for a composite deck, god bless you, because I can build a whole 2 story house 2500 SF house including the basement for almost that much.
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Old 06-18-2018, 07:26 AM   #7
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Re: Is $85,000 Realistic For This Deck?


That's $115 sq ft.
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Old 06-18-2018, 07:28 AM   #8
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Re: Is $85,000 Realistic For This Deck?


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Is that your last gig and you plan to retire on that?

You got $4,500 per guy. How long are you planning to build this deck and @ what rate you pay these guys?

You better check your numbers cuz it sounds like you in LaLa land but if you can get $115 PSF for a composite deck, god bless you, because I can build a whole 2 story house 2500 SF house including the basement for almost that much.
I was thinking $125 sq ft was for building homes. But wasn't sure since that's not what I do.The 81% mark up seems a bit steep. But if he can find a sucker to pay it, I'd go for it too.
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Old 06-18-2018, 07:55 AM   #9
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Re: Is $85,000 Realistic For This Deck?


Your number sounds batsh!t crazy to me, but if you can actually get someone to pay that, good for you and go get it! Also, I'll just come work under you for a couple months a year then come back home to Michigan and live off the profits for the rest of the year!

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Old 06-18-2018, 11:25 AM   #10
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Re: Is $85,000 Realistic For This Deck?


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I was thinking $125 sq ft was for building homes. But wasn't sure since that's not what I do.The 81% mark up seems a bit steep. But if he can find a sucker to pay it, I'd go for it too.
150 a square foot is a pretty normal square foot average for a new custom home here, when I say new custom home I just mean a regular 3 or 4 bedroom Rancher with solid surface countertops, stainless steel KitchenAid, tile showers, decent floors Etc. Spray foam. Nothing crazy. The house I'm building on the view lot will come in at well over 200 a square-foot HVAC square footage

Last time I went to a conference was last year, nahb said the average square foot price for a new house Nationwide was 127 a foot I believe

Surprises me Jersey would be cheaper than that.

That being said, even with a healthy mark up, which is not 81%, I'm not $100 a square foot for a deck

Is there some pain in the ass throwing in that markup?
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Old 06-18-2018, 12:49 PM   #11
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Re: Is $85,000 Realistic For This Deck?


Damn Gina! You are nuckin futz. Hope in the H - E - Double Hockey sticks did you come up with an 81% markup?

For that matter how could material cost be over $30k? Labor isn't bad but looks already marked up. I have a feeling you are double or triple dipping.

Retail for Trex Bamboo is about 18k with tax. That's retail. So the is markup on it. Of the deck is say 20x40 you'd have 12-13 sections of rail. Let's say it's $600 retail. That's like $8000 in rails retail. I'm still well below 30k af retail.

4 guys one week would be 160 man hours. I charge $65 an hour. That includes markup. That's 10.4k. So I'm only at 36k total. Even if I add 20% for plans, permits, unforeseen and whatever else I'm missing I'm at 43k.

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Old 06-18-2018, 03:03 PM   #12
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Re: Is $85,000 Realistic For This Deck?


Yeah, I don’t know where you’re getting you’re 81%. Usually around here people are cost plus 20%. Can’t say for decks, but a good quality nice home around here will cost $300/ft2.
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Old 06-18-2018, 03:16 PM   #13
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Re: Is $85,000 Realistic For This Deck?


Don’t know where some of you guys are getting your sq ft numbers for a house but I’m planning a new house for myself and I’m at $100/sq ft with me doing most everything minus roofing, drywall, concrete, insulation and a little stone work. That’s 1600 square foot ranch with a 3 stall garage. Mostly vinyl siding. Nothing fancy at all. Shlt must be cheap where you guys are at.

I’m not even going to discuss what it costs me to build a spec.. Hint: it’s more.

I hate when people ask what I can build a house for by the square foot.



Edit:

No, $85,000 for that deck is not realistic.

Last edited by Big Johnson; 06-18-2018 at 03:19 PM.
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Old 06-18-2018, 03:24 PM   #14
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Re: Is $85,000 Realistic For This Deck?


Big, I was at about the same dollar amount on my house, it is not fancy either. I did pretty much everything on it except the drywall And a tile. My guys did help with some of it. We even did the plumbing and my father-in-law did the HVAC. It is nicer than what we could build for $150 a foot charging though, and all of my electric was Underground or 400 ft or so.

I use it as an average, I do not use it when talking to clients, I bid everything out individually, each task for each job, not a square foot number.
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Old 06-18-2018, 07:56 PM   #15
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Re: Is $85,000 Realistic For This Deck?


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Sub it to me for $75k and we'll both be laughing all the way to the bank!

Seriously, what kind of multiplier are you looking at here?
I'll do it for $70k, please sign here.....
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Old 06-18-2018, 07:58 PM   #16
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Re: Is $85,000 Realistic For This Deck?


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Quote:
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Sub it to me for $75k and we'll both be laughing all the way to the bank!

Seriously, what kind of multiplier are you looking at here?
I'll do it for $70k, please sign here.....<img src="http://img.contractortalk.com/smilies/whistling2.gif" border="0" alt="" title="Whistling2" class="inlineimg" />
Bastard. $69,500... I've got a kid to feed here... &#x1f604;
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Old 06-18-2018, 08:02 PM   #17
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Re: Is $85,000 Realistic For This Deck?


Quote:
Originally Posted by Cwilkerson26 View Post
Hi everyone, I recently ventured out on my own in the last year to start my own company, I’ve been building houses and decks since I was a teenager, but am unfamiliar with the numbers side of things, I am putting a bid together for a 23x32 (736 Sq. Ft.) single level square composite deck 8’ high, and a set of 3 steps 20’ wide landing on an existing patio, with timbertech tropical line decking, and evolution builder rail with the cocktail rail. I estimated materials to be $33,277 & labor with 3 guys at $13,702 and then added a markup of 81% for all overhead and net profit, and it came out to a total price of $85,033.80. My company is based in st.louis, mo, and I know no one will know what my overhead is or what profit I’m aiming for but does this price and markup seem standard? I saw the final number and was a little shocked myself...can anyone help me out?
Well, what profit % are you aiming for?

Also, you're aware you don't try to pay for a years worth of overhead in 1 job right?
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Old 06-18-2018, 08:04 PM   #18
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Re: Is $85,000 Realistic For This Deck?


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I'll do it for $70k, please sign here.....
Bro...I can do this all day! We have plenty of room to move. I feel like I'm bidding for a car on ebay an additional $1 at a time.
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Old 06-18-2018, 08:28 PM   #19
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Re: Is $85,000 Realistic For This Deck?


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Quote:
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I'll do it for $70k, please sign here.....<img src="http://img.contractortalk.com/smilies/whistling2.gif" border="0" alt="" title="Whistling2" class="inlineimg" />
Bro...I can do this all day! We have plenty of room to move. I feel like I'm bidding for a car on ebay an additional $1 at a time.
Fair enough, let's team up though, I'll get the contract, we'll knock the job out together (you seem nice enough) we'll split the $50k+ in profit down the middle.

The lower we each go the more he makes... seems counter intuitive.
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Old 06-18-2018, 08:37 PM   #20
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Re: Is $85,000 Realistic For This Deck?


I'll say that there are a million ways of calculating job pricing so we should all think twice before commenting. I figured out a few years ago that if I took my straight material costs(no markup, no overage, etc.) and my employees straight labor rate(again, no burden, no markup, etc.) and multiplied it by 1.63(or pretty darn close) then I'd hit my target numbers. It sounds like a lot but that 63% isn't just overhead and profit, it's EVERYTHING but straight costs. This guy may be doing the same, or not...

I will say that the material price seems really high for the deck as described. I'm out of the deck game so material prices have gone up since then but I'd expect to see that kind of budget for a multilevel with glass rails and some other frills.

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