Our goal is to help contractors build more profitable businesses, but how do you measure success? How do you know your pricing will result in a profit?
You can be the most ethical person in the world and if you aren’t charging enough for your work, you stand a good chance of cheating someone else.
Why cost plus and time & material contracts should be avoided, for both contractors and building owners.
At some point this health crisis will slow down and go away. When it does, there’s a good chance we’ll be doing some things differently. But some things won’t change.
Pricing changes for a change work order isn’t easy when the scope of work isn’t clear.
This note is a painfully perfect example of why you shouldn’t provide details on your pricing.
From a contractor: “I am definitely going to do a better job in pre-selecting my clients after this one.”
A construction company building both new homes and remodeling needs to calculate a separate markup for each type of work.
Michael addresses a few different questions we’ve heard recently, primarily dealing with taxes and profit and calculating your markup.
After reading our books and trying to do things right, why is he still not making any money?
Over the years, I’ve seen contract language evolve, shifting more and more responsibility to general and specialty contractors.
What do you do when your partner is listening to someone who knows nothing about construction, but still thinks they knows what’s best?
When I teach a class or webinar, sometimes I wonder if my listeners understand what I’m trying to say. After reading some of the questions that came in during a recent webinar, I realized I missed the mark.
Everyone, and I do mean everyone, who has ever compiled an estimate has made a math error that put knots in their stomach once it was realized.
You shouldn’t sign a contract that stipulates what you can charge, even if it’s just on the change orders.
Since the end goal for both the architect and the contractor is a satisfied client, how about working together from the beginning?
When your books are set up properly, it’s easy to calculate your markup, and it’s also easy to compare your actual results to your estimates.
Should you take every opportunity to increase exposure for your business?
There are two schools of thought on pricing handyman projects and service work: T&M or flat rate pricing. They both have advantages and disadvantages.
If your lawyer believes you have to justify your pricing just because someone doesn’t want to pay their bill, it’s time to find another lawyer.
Is transparency the way to go when selling? Be careful who you listen to.
If they tell you the formula to use will make you more profit, that’s baloney. It’s the numbers you use that determines your profit.
Being profitable doesn’t mean getting rich off your clients.
You can’t lower your price and expect to make up for it by selling more, because there is a limit to how much you can produce. Every job needs to be profitable.
It’s important to remember you aren’t in business to drive around and give out numbers. If you’re a specialty contractor, you also aren’t in business to provide numbers to architects or general contractors.
“I have more work than I can do. I tell new leads to call me after the first of the year.”
It’s hard to remember what you’re worth, especially if you’re spending time on jobs that cost you money.
There isn’t one right way to handle allowance items that works for all contractors and all clients. Plan A may work for most clients, but then you meet Mrs. Oddball who seems to work at being difficult. So you derive Plan B and hope it works.
Some clients want the lowest bid for their project, and nothing else matters. It’s your job to try to educate them.
Remember, you’re in business to provide a service and make a profit doing it.