Why Do You Need To Make A Profit?
By Michael Stone – (Aug 14, 2019)Don’t confuse profit with salary or hourly wages. Making a profit isn’t optional: Your business needs profit to survive.
How to Be Profitable
By Michael Stone – (Feb 15, 2017)It’s important to be focused on profitability. You’re in business because you want to keep a roof over your head and food on your table; you can’t do that when your business is losing money.
Can You Be Both Competitive and Profitable?
By Michael Stone – (Feb 8, 2017)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.
Sales Issues: We Want the Lowest Bid
By Michael Stone – (Jun 22, 2016)Some clients want the lowest bid for their project, and nothing else matters. It’s your job to try to educate them.
Markup Worries
By Michael Stone – (Jun 8, 2016)Remember, you’re in business to provide a service and make a profit doing it.
Pricing Too Low
By Michael Stone – (Sep 2, 2015)It is a fact of life that when you sell construction-related services, you’ll have clients tell you that your price is too high. Bless their hearts. They have no idea what would be a fair price for the work they want done, they just know that your price is too high.
Low-Value Jobs
By Michael Stone – (Aug 26, 2015)I read many articles on the construction industry looking for, among other things, information on how the construction industry is doing and what we can expect in the immediate and near future. One statistic that always interests me is the size of the average remodeling job.
It’s Time to Stop Being Superman
By Michael Stone – (Aug 19, 2015)In every business, some things we do eat into our profitability. Do you run your business or does your business run you?
Owner Deserves a Salary
By Michael Stone – (Mar 11, 2015)I applaud this person’s efforts, helping someone else with the business side of business so the craftsman can continue being a craftsman. But this craftsman is going to have to either learn how to run a business or start charging enough for his work to both feed himself and pay an office manager.
How Much Should a Contractor Charge?
By Michael Stone – (Sep 10, 2013)Many of our website visitors aren’t contractors, they’re clients looking for help with a Cost Plus project gone wrong, or wondering if their contractor is overcharging.
What It Costs to Be Lowest Bidder
By Michael Stone – (Jul 25, 2012)Why would any serious construction-related business owner want to be the lowest bidder on a project? Let’s look at what that means.
Pass those savings along?
By Michael Stone – (Jul 1, 2011)I read an article where the author talked about passing savings on to clients. This sounds well and good, but place it low on your priorities when putting a job together.
Bigger doesn’t always mean more profitable
By Michael Stone – (Mar 1, 2011)Often when I talk with contractors, I hear, "I want to grow my company so I can make more money." Consider this, if size mattered, dinosaurs would still be here.
Your Price Isn’t Negotiable
By Michael Stone – (Sep 21, 2010)I heard about a scam a local building owner is pulling on his subs. He has several properties and is apparently worth a considerable sum.
What Makes the Most Money?
By Michael Stone – (Jan 14, 2010)I’ve talked about focusing your attention on the 1, 2, or maybe 3 things you do well and make the most profit on. Doing a good job of advertising and promoting those.
“Transparency” or Proprietary Information?
By Michael Stone – (Jun 29, 2009)Someone once said, “No man’s business is safe while the legislature is in session.” Here is another example.
Run a Profitable Construction Business
By Devon Stone – (Apr 4, 2009)Michael takes a minute to talk about the value of making a profit. (video)
Focus Your Construction Business on the Profitable Jobs
By Michael Stone – (Apr 15, 2008)The ancient Chinese philosopher Confucius said, "The man who chases two rabbits catches neither."
Price Your Construction Jobs Correctly
By Michael Stone – (Aug 30, 2006)If you are tired of starving because you have enough work but don’t have the money to pay your bills, heed these words.
Definition of Terms – Construction Accounting
By Michael Stone – (Apr 10, 2006)Time for a quick review of some terms: gross profit, net profit, owner’s salary, owner’s wages. Owner’s salary is overhead, owner’s wages are a job cost.