"What a great book! I'm only about halfway through it and boy have I been losing $.
I've only been in business part time about a year. From reading your book it looks like I'm just working for wages, not profit. I'm looking forward to putting the strategies that you teach into action. I will suggest this book to all my friends."
Grove, Texas
"For 32 years I have been looking for someone to tell me about markup & profit, thank you. I have read the book 3 times and finally had to put it down to let it sink in, that's how hungry I am about this information.
I am one of those contractors that always felt guilty about my prices and then ended up giving all the extra's away. After reviewing ten jobs in the past, I found that I left money on the table. The greatest thing your book has given me is confidence on how I approach each job and potential customer and also how I handle my personal life's money."
Newburyport, Massachusetts
"What a great book this is!! I think every contractor in business should read "Markup and Profit" as required reading to get a license. I look forward to continuing my learning with your expertise, even though I've been a licensed electrician for some 14 years."
Long Island, New York
"I just wanted to drop you an e-mail letting you know how much I'm enjoying your book Markup & Profit. I received it yesterday and I've already read the first 150 pages. So much of what you say in the book is so true. I am a highly respected contractor in southeastern NH and love the trade that I'm in. However, after having done this for almost 20 years, I still feel as much like a used car salesman as I did when I first started (no offense to used car salesman by the way).
I can do the work in my sleep but still struggle pulling the business aspect of it together. Your book has already answered so many questions for me and better prepared me for my working relationship with my clients."
Exeter, New Hampshire
"I have your book and have read only a third of it and now understand my husband and I have been going about this business wrong. Thank you for such a great book.
(After our phone conversation) I would also like to say, 'Thank You', for your advice on the l.50 markup; without exception, this is our markup until we learn more. Yes, it has cost us jobs; however, we were giving our work away and going broke before anyway. Thanks again, Michael for helping those of us that didn't know how to help ourselves."
Chattanooga, Tennessee
" . . . I also want to thank you for publishing such a great book. I bought Markup and Profit a few months ago and it has helped me understand the business end of electrical contracting. I know what I have learned from the book and the calculator will keep me from ever winding up tired and broke again at the end of the work year, and will help bring in the income I need to support my family and have a good future in this business."
Colonia, New Jersey
"Ordered book back in mid-summer and have read through and through and worked examples and have applied to our business. We are a commercial-industrial contractor mainly doing concrete with general work on occasion. Even though book is directed to residential we found also applies to our type of work. We have changed our business to reflect your basic principles for overhead & profit. That has meant that we bid or negotiate more projects but have found that the markup & profit principle works.
Some projects we have quoted, I have to read The Board or book to keep on course and not start doing something stupid as have been done in the past. These projects are in progress or starting, so we are going to keep a very close check on the progress.
It makes me sick see how misinformed we have been over the years from our supposedly professional help. Thanks for the HELP!"
Lexington, Tennessee
"I wanted to let you know how much this contractor appreciates your work.
I have been in business for seven and a half years. In this time I have tried numerous approaches to doing business. While I have made it this long I have built considerable debt. About two years ago a friend gave me a copy of your book Markup and Profit. I am not a big reader, and am ashamed to say it sat on my desk, then book shelf, until this winter. At which time he and another successful friend, after seeing my total discouragement, met with me to help me decide if I should continue in the business or get out.
After reviewing all aspects of how I am doing business they felt I am not making any one big mistake and should keep at it. They 'demanded' however, among other things, I read your book. (I will also say that the one friend credits your book and Christian principles with making his company very successful).
I finished it in January and have begun putting it into practice including a percentage plan to pay down debt. I am already feeling some benefit from your ideas and am encouraged that, after such a long time, this may actually work. It has been a blessing. I am also enjoying your monthly e-mail news letter, this is the second one I've received.
Thanks again for good, straightforward information."
Montague, New Jersey
"Just a note to let you know how much I appreciate your manual on markup and profit. I have just re-entered the residential construction arena after spending 23 years in the heavy construction trade as a union carpenter and supervisor. I was involved in residential construction in the late 70's but at that time all I had was a knowledge of how to 'drive nails.' Consequently it didn't take long for me to seek out another form of employment and so I joined the union in 1979.
In May of last year I was approached by some friends of mine about building a home for their daughter. I had previously built their home in 1985 and I was excited to have the opportunity. To say the least a lot has changed since 1985!
Unfortunately not only did I come up short on the man hour estimate but I didn't add any markup at all. Thank God I had my son as my only employee! That's why your book is so great. I really want to do it right this time and even though I learned a lot on that first house, I definitely don't want to repeat the same mistakes."
Lewiston, Idaho
"Michael's straight-from-the-hip, no nonsense approach was thorough, effective and easy to understand. I saw how to make more money in this one session than I have in all the years I have been involved in the construction business!
Michael has a passion for what he does, helping people in the building industry look at their field from another perspective and finally be able to make a profit for themselves . . . I urge anyone interested in succeeding at their profession, and not just surviving, to take some time out to pick up a book or watch the tape . . . You will be glad you did!"
Colorado Springs, Colorado
"The information is just what our company needed. It reinforced the reason we're in business - to make money. It also gave us those "magical formulas" that we knew just had to be out there somewhere, and valuable pointers to enhance our sales techniques. We loved our business before - now, we really love it!"
Las Vegas, Nevada
"I am an electrical contractor . . . The purpose of this letter is to express my sincerest gratitude for sharing your knowledge with other contractors like me.
I found your seminar most interesting and enjoyable. I would recommend your seminar to anyone who has a business and wants to understand their business. I will take on all the information you shared with me and continue to thrive in this highly competitive market."
Mercer Island, Washington
"The biggest change is in an attitude I can feel developing inside of me about myself, the way I dress, the things I say about my business, and my new relationship to my clients. This has been a most positive change. Thank you once again for a real learning and life-changing experience."
Palomar Mountain, California
"Thanks for your down to earth and practical wisdom. Most of your advice or rules of business conduct are simple and easily implemented. The hard part is committing to implement the ideas. The best suggestion you gave during your seminar was to establish an Operating Capital Reserve Account(OCRA). . . . . Simple advice that can literally line the pockets of a company a little at time (painlessly too!)
Your seminar is a good return on my investment. Just think a $200 seminar gave me one, just one idea, which will net me over $100,000 in the next 6-10 years."
Northfield, Minnesota
"I am the handsome but burdened guy at your Sacramento seminar who drove you to the airport and discussed my woes with a incompetent and dishonest accountant and the related financial pinch. Last year we increased sales by just over 15% to $1.3 mil, with an 11.6% net profit. This is a dramatic turnaround from the previous year when we lost money on about $1.1 mil in sales.
We're still feeling some effects from the decisions my former manager made, but are gradually building a better quality team of employees, re-earning the trust of good subs, and re-establishing our reputation with homeowners and the insurance carriers we work with. We believe we can improve both our sales and our NP this year.
Everything you told me was true and I listened. It was hard but I've done it and learned a lot in the process. There's so much information in your workbook that I know I need to read it again this year. I've been through it several times and learned more each time.
Thanks again for your help."
Fairfield, California
"Just wanted to send you quick note and say THANK YOU. Your seminar and also the Markup and Profit book have been what kept us in business. We are continually working on our business and still have a lot to do but in looking over the last two years we've come a long way. When we came to your seminar we were the mechanic that was completely frustrated with that "business" system and ready to quit. We discussed the ideas the whole 3 1/2 hour drive home and decided we didn't have anything to lose. One aspect that we implemented first was the OCRA account. Now looking back I'm not sure how we survived without it.
I received the M&P book today that I had ordered for another contractor we work with. We really hope to be able to help him out with the business end of his business. He is about our age (20's) and has the trade knowledge but is struggling with the business end and wants to learn.
Again thank you for taking the time to put together a much needed book on the business end for our industry."
Greenbank, West Virginia
"I had an opportunity to attend your seminar in Toronto this last fall, and I wanted to thank you for the assistance it has provided me and my business . . .
I found that prior to attending your seminar I had a good handle on my business, especially because of my previous experience, as well as my university degree in business administration. However, there were certain aspects I was unsure of to get me to the next level. In short, your program answered all of them. And now I know exactly what I have to do."
Ontario, Canada
"I wanted to tell you thanks for sharing your knowledge with us . . .
I have searched for the answers to questions posed during the course of being in this business in many different places and with many different "experts" offering their opinions. I have mostly come away disappointed and unenlightened from people either knowing a lot about the counting beans aspect but not a lot about the nuts and bolts part, or vice versa. Your seminar provided the most comprehensive and complete information I have seen thus far."
Yelm, Washington
"I was hired as a part-time bookkeeper in 1997 for a small painting and stucco business which was started in 1987. Previously the owner, Harry, had done all the office work, bid work, estimates, billing, etc himself.
My first year was spent getting the office organized, setting up a filing system, paying bills and trying to get a handle on the company profit and loss. That year ended $75,000 in the red. That's when our quest began. We had long discussions on how to set prices, where we could cut costs, and how we compared to other businesses. We analyzed, discussed, and set some goals. We raised our prices. We increased sales, hired more employees, worked our tails off and at the end of the year we were $45,000 in the red.
Then Harry saw a flyer for a seminar called "Markup and Profit" in Reno, Nevada. We decided to attend.
We learned that our formulas for markup were destined to fail. My formula was to take job costs times a made up percent (what I thought we could get away with) and set the price. Harry set his prices based on his emotional attachment to his customers or what he thought they could afford or would be willing to pay. It is not easy changing the way you have always done things but we did, we had to. At the end of the year we were $12,000 in the red.
Better, but not good enough. The next year we cut more expenses, laid off some employees, had huge discussions, set goals and finally, finally pulled together a true picture of what our overhead costs were and reset our markup figure (increasing it for the 4th time). We ended the year $10,000 in the black. Here's what we did: 1) Established a markup based on Michael Stone's principles. Not what we thought the market could bear, not what we thought our customers can pay and not in comparison to any other business period. 2) We cut back to 5 employees which includes Harry and myself. . .
The year is not over yet but so far it looks as though we will be $30,000 in the black.
Thank you, Michael."
Bishop, California
"We took the M&P seminar on November 11, 2000. As a small family owned builder, our motivation was that we were struggling to make sense of how much to charge customers, why we didn't seem to make any money at the end of the job, and were headed towards a bleak future of not making the company work.
The seminar opened my eyes to a very simple way to approach a number of the money issues that I mentioned above. The course was a starting point. The M&P book was the course work. I read the book fully at least 2x. Studied parts of it more than that, and did every exercise as my life depended upon it. (In the end, it did). The book lead to a whole raft of changes in how we estimate ($300 and above is now the law), how we priced our homes, budgeting from $0 for all G&A, focusing on sales, and many, many other things.
- In 2000 we closed the year with sales of $1,633,394 and a loss of $43,126
- In 2002 we closed the year with sales of $3,583,367 and a profit of $125,000
- In 2003 we anticipate a year with sales of $5,350,000 and a profit of around $275,000
It's still not 8%, but we are aiming for that within two years. It's a constant adjustment and struggle. And, it was not all M&P that did this. But I am not sure that we would have found our way out of the woods without M&P's help."
Milwaukee, Wisconsin
"My husband and I are in our seventh year in the general contracting and remodeling business which has grown phenomenally since it began. I married Michael nearly six years ago and became an officer in his business, which he had the foresight to incorporate.
It was still a small operation however, which Michael managed from his truck and home. When I came on board, he still supervised all the jobs himself, worked on them intermittently, hired a few carpenters as he needed them, and relied on an independent bookkeeper every two weeks to pay the bills. At that time, we envisioned growth and starting developing a three to five year plan. Then we received a flyer about Michael Stone's Markup and Profit Workshop.
I have always been a believer in continuing education. When I don't know something and need to learn it, I go to the best sources of education available. So we made the effort to attend the seminar even though it was a five-hour drive away from home. My husband and I still agree - that was the best investment we have ever made in our business!
Now, our corporation looks entirely different. We are a successful Build and Design firm, with a prime office location. We are active members of our local building association, are members of a national remodeling club, and attend annual building conferences. We have 10 employees at all times and hire on extra help during our peak season.
We have solid relationships with the banks, suppliers, and subcontractors in our area. We build spec homes that usually sell before completion. We also do remodeling and additions. Furthermore, we are building out a local business park. WE HAVE SUCCEEDED.
Now our problem is not how to get business, but how to manage success. And again Michael Stone has been a great resource in advising us. We would heartily recommend his seminars and his services to everyone who is in the contracting world!"
Kalispell, Montana
"I was one of your "pupils" at your recent seminar in Taunton Mass. I wanted to thank you for coming through New England and leaving us (at least me), with your insights into the remodeling business. I remember you telling us about "money left on the table". I needed to tell you that I was in the middle of a 35K remodeling project when I took your course. The job started to expand, and change, and I found myself writing Change Orders to the tune of about 15K. I had done my homework, and I knew what my markup should have been on these orders. The money that would have been left on the table if I had not answered your invitation to attend your seminar? about $4,870.00. Michael...instead of leaving it on the table....I put it in the bank!"
Bourne, Massachusetts