I am trying to win a commercial bid for flooring.
It appears my understanding of vinyl base installation pricing is not in line with what the client feels is fair, so I am asking for some feedback on low/high/average installation ONLY pricing per linear foot for vinyl wall base. Job is in Georgia. I'm from Ohio.
I quoted $1.00/LF client suggested $0.50/LF.
Any guidance on this would be much appreciated
At the clients suggested 100% depreciation in your value, now just imagine you told him $2/foot, you'd be at your low $1/foot... that's not how this works... the only time YOU give up something in pricing, is because the CUSTOMER is giving something up... EVERYONE ELSE (i.e. - overhead, employees, taxes, suppliers, subs, etc.) still expect to be paid no matter how much you short yourself... so the only place that money is going to come from is directly out of yours and your families pocket if you don't have the Capital Reserves or Emergency Fund in place to absorb a loss to buy the business at such a cheap rate... and to put it in perspective... YOU'RE the one bringing everyone else the business, so why should YOU get screwed?...
You need to charge what YOU need to charge to be in business and find customers that can afford to pay that... re-read Fishingdude's post... gives a basic understanding on it, although forgets about Profit for your company... YOUR PAY, Mark-up and Profit are not the same thing... Your pay should be covered in either your Labor or Overhead costs, which make up your hourly rate, Mark-up is to cover variables in material costs and other miscellaneous expenses (i.e. - handling, acquisition, shorts, delivery, gas, subs, etc.), and PROFIT is what you pay your company to develop things like 3-6 months of Capital Reserves and Emergency Fund, Equipment Fund, etc...
