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?
Is $85,000 realistic for this deck?
Cwilkerson26
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I'd pay 2 guys 25@hr...they'd be done in 2 weeks and I'd pocket one of the biggest paydays in my life
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My insurance agent did the replacement estimate for our 800sf redwood deck at $80,000. *shrugs* Maybe everyone should hire their insurance agents to do their estimates? They do have killer software.
After the fire we learned most people were under insured by a long shot.
After the fire we learned most people were under insured by a long shot.
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Before reading the context of your post, I thought you were saying 85k was your minimum lol
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eh
my avg guy makes 30 hr + 9 hr in overhead (ins ue wc payroll expense blah blah blah) not including, supervision, shop, tools, pto etc
40 hr x 80 = $3,200.00 x 2 = $6,400.00
I don't think I've ever had a labor bill for a deck that low, I'd consider 12,000.00 a low avg labor costs for a deck
I would love to paste an email I got from a potential customer regarding their deck project, but I don't think it's fair to the person who wrote it. He pretty much called me out on being over priced and providing a crappy estimate.
It was very entertaining, I just mentioned I've been around awhile have real employees, and I was giving a price for a project with no drawings or engineering what so ever. All conceptual. I told him that most people will be happy to do the project for at least 30% what I told quoted.
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How are you defining the word "profit" here? So many have so many different definitions, I'm just curious. I define profit as net profit per job, including company profit and personal profit, excluding overhead excluding emergency/recession proofing.
Is "15-20% minimum" calculated =
Job sold for $20k. Company and personal profit combined should be equal to or greater than $4k?
10% net after ALL expenses and salaries including owners is my goal. End of year
If I was a specialty trade and performing the work, I'd expect higher.
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I'm not sure I understand what you mean by personal and company profit. The company charges and collects money. Subtract your costs from that money collected and you have your company profit.
Your salary is included in the cost. Now you take money out above your salary. That isn't profit but dividends.
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I'm probably not using it correctly, but a dividend is what I consider what I pay myself as a bonus. Profit, meaning net profit, is with the company makes in a given year. Or it given project. I only consider what the company makes per annum is net profit. I have never taken the entire profit as a dividend. It remains in the company or purchases new equipment, adds on to the shop excetera.
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A dividend plus my salary is what I consider what (I) earn for that year.
I live the following year off of last year's dividend and my current salary.
If it's a ****ty year this year it's 2019 I live that way
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I live the following year off of last year's dividend and my current salary.
If it's a ****ty year this year it's 2019 I live that way
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Good clarification. I said personal profit but was referencing owners salary. So "profit" being defined above is company profit, not allocated for anything specific, but there for dividends or reinvesting in to company.
So then the 10% company profit (net profit) = Job price of $30k = $3k company profit. And the $27k is spent as it went towards marginal job costs (material + labor + permit + dumpster + etc.), company overhead, and owners salary
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Not for me. It would be $27,000 including what it cost to run my company, pay my staff in the office, pay for my shop and office, Vehicles, Insurance of all kind, Christmas party, Christmas bonuses, company clothing, Etc. And then $3,000 profit
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Right, I think I'm on the same page then
What about "recession proofing" or an emergency fund for when s*** hits the fans unexpectedly (bad economy/low sales, had a bad year totally unplanned, etc.). Do you include this as a cost when calculating a job's sale price? Sent from my Pixel 2 XL using Tapatalk
No. I keep back net profit to add to operating capital.Right, I think I'm on the same page then
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I'll hemmorage someone's annual salary for a fee months WHEN it happens. Part of the game.
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Ok, it's fall. Deck should be done.
How'd you do C Wilks? You retired?
How'd you do C Wilks? You retired?
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