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California Carpenter Wages

 
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Old 12-10-2017, 02:26 PM   #41
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Re: California Carpenter Wages


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Originally Posted by tkrrox View Post
Very well said. I will admit Iím green at being a boss. Like stated, it had been my fatherís old employee and I until the last couple of years. I have been trying to find some more workers so I wouldnít have to turn down as much work. The thing when I look at the books itís pennies that Iím making with added help since itís keeping me from my work. I guess there is a leap there like all steps in business.


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that's the trick, making money off of others

I can't say I was making bank on day one, it took awhile to fine tune the expenses and costs and to finally make money off of them, which today I'm doing, you'll figure it out over time

my money guy (I can't read a bank statement or balance a check book so someone else is paid to do that) he is irritated with me because he thinks my labor costs are too high (ie hrly wages, yearly $1.00 to $2.00 an hr raises and I'm kicking down cash bonuses and holiday pay) but I feel like if I pay well guys will be loyal, which go figure works

I charge 50 - 65 an hr per guy on T&M, the larger the job the lower the rate, the smaller the job ie handyman the higher the rate

When bidding, just because you think something should take an hr, it doesn't, it takes twice as much at least, I bid at sq ft, lf pricing, and unit pricing as well as hrly rates which is based off of $100.00 per hr and how many hrs I think it'll take to complete something. My unit pricing is the highest around and I don't care, for example 8.00 lf for vinyl cove base install labor and materials.

I'm here to make money end of story, I now feel bad for other contractors who don't want to make money and want to charge as little as they can. I had a big box contact me about working for them. I point blank asked if they will pay 22.00 sq ft for tile install, the guy wouldn't answer my question but would say he'd "take care of me" WTF? I then asked for $250.00 a toilet install rate.

I'm not ripping people off, I'm running a legit business, shop, employees, and all kinds of bs. My shop rent is $2,500.00 a month for 1200 sq ft. I live in one of the most expensive places in the country pay for it bitches Even if you don't live in an over priced region, you should charge what is fair to run a business
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Old 12-10-2017, 04:25 PM   #42
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Re: California Carpenter Wages


Quote:
Originally Posted by fast fred View Post
that's the trick, making money off of others



I can't say I was making bank on day one, it took awhile to fine tune the expenses and costs and to finally make money off of them, which today I'm doing, you'll figure it out over time



my money guy (I can't read a bank statement or balance a check book so someone else is paid to do that) he is irritated with me because he thinks my labor costs are too high (ie hrly wages, yearly $1.00 to $2.00 an hr raises and I'm kicking down cash bonuses and holiday pay) but I feel like if I pay well guys will be loyal, which go figure works



I charge 50 - 65 an hr per guy on T&M, the larger the job the lower the rate, the smaller the job ie handyman the higher the rate



When bidding, just because you think something should take an hr, it doesn't, it takes twice as much at least, I bid at sq ft, lf pricing, and unit pricing as well as hrly rates which is based off of $100.00 per hr and how many hrs I think it'll take to complete something. My unit pricing is the highest around and I don't care, for example 8.00 lf for vinyl cove base install labor and materials.



I'm here to make money end of story, I now feel bad for other contractors who don't want to make money and want to charge as little as they can. I had a big box contact me about working for them. I point blank asked if they will pay 22.00 sq ft for tile install, the guy wouldn't answer my question but would say he'd "take care of me" WTF? I then asked for $250.00 a toilet install rate.



I'm not ripping people off, I'm running a legit business, shop, employees, and all kinds of bs. My shop rent is $2,500.00 a month for 1200 sq ft. I live in one of the most expensive places in the country pay for it bitches Even if you don't live in an over priced region, you should charge what is fair to run a business


If you are paying your guys 30 and only billing 50 and 20% p&o. (This is basically worker comp, liability, and payroll-doesnít even figure for rent or office expenses) They are costing you roughly $42 depending on your workmanís comp %. That means $8 to your pocket. I was told ideally you want to make at least $20 off each guy or itís not worth the stress keeping them busy.


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Old 12-10-2017, 06:03 PM   #43
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Re: California Carpenter Wages


...

https://www.markupandprofit.com/blog...e-construction

Quote:
by Michael Stone
Received a note from a young fellow the other day. He said he was told that a contractor should bill his employees out at their rate per hour times 2.6 to cover their cost and make a profit on that labor.

Please, don't dump your overhead and profit burden onto labor. It doesn't work. Charge a flat rate for your work that doesn't play games with the numbers. Example:

You have an employee you are paying $20 an hour. You charge them out at $20 x 2.6, or $52 an hour..............

"Change yourself, and the way you look at things change."
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Old 12-11-2017, 12:08 AM   #44
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Re: California Carpenter Wages


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Originally Posted by SmallTownGuy View Post
...



https://www.markupandprofit.com/blog...e-construction









"Change yourself, and the way you look at things change."


I read the article but not sure Iím completely understanding...
If I have a job where I have
100hrs labor
$5000 materials
The way Iím reading it is I figure
100x$30/hr labor x1.48=$4440.00
+$5000 materials=$9440.00x1.50markup puts the job at $14160.00
This would make my profit $4960 if my actual labor cost is $42/hr

I figure my jobs like this
100x$50/hr labor=$5000+$5000materials=$10000.00x20%
So my job proposal would be $12000.00 where my profit is only $2800 ( I realize I should be figuring my markup divided by .8)

My question is where is the author getting the 1.48 on labor and the 50% markup on total cost?





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Old 12-11-2017, 12:29 AM   #45
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Re: California Carpenter Wages


Skilled labor in California is a huge issue.

Head hunting is becoming rampant.

Not only high dollar wages but percs are being offered.....

Wait until the 5000 or so houses start coming on line in Santa Rosa, the previous So Cal fires and the current ones.....

not like we were in a construction recession anyways.....

hundreds of school districts have passed construction/modernization bonds that will start coming to bid next year.....this is BILLIONS of dollars.....

So a small time remodeler/home builder to is likely to suck hind tit, if he can even get a tit.....
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Old 12-11-2017, 11:52 PM   #46
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Re: California Carpenter Wages


Just to give you an idea of where Im at since your asking, my lead man on the job makes close to $60 hourly and I can't remember the last time he made a serious mistake on one of my projects. I have an extremely talented carpenter who makes close to $50 hourly, he's a very conscientious and efficient craftsman .. When you offer fair money, it doesn't matter what economy your in, the good guys come out of the wood works. Ive always tried to remember that we live in california and people need to make enough money to support their families. If a potential client doesn't want to pay my price, than they aren't my client.

That being said,

The word competition doesn't even exist in my vocabulary. I market my business to people who can and will pay my price and thats that. They receive a quality product for a fair price.

Hope this helped.
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Old 12-12-2017, 12:17 AM   #47
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Re: California Carpenter Wages


Quote:
Originally Posted by tkrrox View Post
I read the article but not sure Iím completely understanding...
If I have a job where I have
100hrs labor
$5000 materials
The way Iím reading it is I figure
100x$30/hr labor x1.48=$4440.00
+$5000 materials=$9440.00x1.50markup puts the job at $14160.00
This would make my profit $4960 if my actual labor cost is $42/hr

I figure my jobs like this
100x$50/hr labor=$5000+$5000materials=$10000.00x20%
So my job proposal would be $12000.00 where my profit is only $2800 ( I realize I should be figuring my markup divided by .8)

My question is where is the author getting the 1.48 on labor and the 50% markup on total cost?





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The author is saying that you need to figure out what your labor burden is IE payroll taxes, W/C etc, come up with the number, in this case I believe it was $27 hourly. Next, figure your total hours (at $27) and total material costs and multiply that number by 1.50 . This markup will cover your overhead and profit needs including the owners salary. In this example your numbers would look like this

Labor- 100hrs x $27= $2700.00
Material- $5000.00

Total= $7700.00x 1.5 (you need to do you numbers to determine the correct markup but I dont believe it should be much lower than this) = $11,550.00 TOTAL BID PRICE

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