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d roc, answere to your question about profit

1116 Views 1 Reply 2 Participants Last post by  d-rock
I used to do alot of insurance work (in MI) and at the end of my bid insurance companies wont bat an eye at "Add 10% profit", and "Add 10% overhead". I dont however incorporate this at the end of an estimate for a home owner just because it's the first thing they'll say "what's this?" while they look at the estimate. If you're a good salesman you can explain it to them but to me it's just easier to add it in w/ my total overall expenses. W/ an estimate it's the final # that matters anyhow. Honestly, charge as much as you can and still get the job. You dont have to be the cheapest guy in town unless you're not very good at what you do (that's not a jab, I say that because I use to think I had to be the cheapest or I was gouging). I hope this helps.
BTW, I lost most of my insurance work because the company that gave it to me started using a program called exactimate to compute their estimates. That works on the big jobs but if you have to replace 4 doors and 2 rooms worth of base boards w/ this program you'll loose your shirt so I started loosing the jobs because I dont work for free.
I've been on my own for 3 years and times are tough. I recently thought about hanging it up but it's what I love to do and I have a God given talent and passion for it so I'll keep on keeping on. It'll be a sad day when no one needs a builder for anything any more!! Sorry you got razzed so bad here, but good luck w/ your new business!!
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Thank You for going out of your way to help. The people on this forum were very helpful actually. only 1 person was a bit rude, But I think it was mostly because he didn't know all the facts. Good luck to you and your business !
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