Just to clarify, I am just starting out. In case anyone is under the impression that I've been on my own for years.
I could see that in time as I am referred to more people who don't know me personally that they wouldn't necessarily want to go out on a limb and trust in something so open ended.
However, currently I have a reputation as being a super hard worker and I don't think that anyone who would hire me would be worried about leaving it open ended, they would be worried about why my hourly rate is so high. Keep in mind I live in amish country, somehow their presence has held down what people expect carpenters to charge. Most wouldn't like it, but would expect that the going rate for a plumber/electrician here is $60/65/hr but you talk about a carpenter charging $45/hr and that's just ridiculous. All the more reason to model a company under fixed pricing. Besides, why work so hard to have the knowledge/ability to work faster and more efficiently if your are creating a ceiling over yourself for possible income earning. If I work twice as fast I should make twice as much.
It is still beneficial for me to have a realistic expectation of billable hours per year. But I'm definitely realizing that I need to work on figuring out how I'm going to sell my customers on a fixed price even if they want T&M. I can get by on T&M with some growth and 8-10% profit at the end of the year but I won't have anything special as far as personal income, and definitely not the kind of company growth I want.
If the local market will only bear $xx/hr I have to adapt my business model somehow to make up for it.
Thanks for all the good advice. :thumbup:
Perhaps your area is different than mine---But I just don't do T&M--unless it's for a regular customer or in and out service work.
Most folks want a price for the completed job---T&M is like asking for the customer to write you a blank check---I just can't sell a customer a job without a bottom line price.
I know you didn't want to hear that---bidding is the part of this work that will make you or break you----and comes at a huge cost---blow a few bids and you will understand what I mean.