5 Mistakes Most Contractors Make 

My dads been charging the same prices since 1999 literally. He is retiring n i am taking over. I pretty much just double what he says now. Esp right now i can triple it No advertising we been living decent for years

Man, God is good to you guys!

Happy for you, that's a great change.

man you may just be in a stagnant market.. I use to do a lot of contracting around Dallas.. booming market but man ull run urself ragged.. ive since went back to welding.. residential work is just annoying dealing a majority of the customer. Everyones wanting something free and everything is over priced... I rather just deal with a company lol

An old boss and friend told me one day, "I'd rather do a hundred jobs a year and make good money than do five hundred jobs a year and make decent money."

Amen to that!

Dude. Thank you! About time someone recognize and knows what's going on

Absolutely!!👍

I've been working in construction full time since I was 17 and was always willing to take a little less for steady work and a good environment

I don't know this man personally, but I think that he is the type to simply assume that.

...and then he puts his Hand next to a running Chainsawblade. Kind of spoils it for me.

im sitting here taking notes: "stop thinking about the value of what you provide in terms of what you would pay to receive it.its an irrelevant perspective. The value of what you provide is what other people are willing to pay. And its a hard thing to discover because your competition is not going to be anxious to share that with you but in general terms, if your not missing at least half your bids because of price. You’re Too low. "

@@klot4544 He's been doing it a long time and still has all his fingers...I'd say he knows where his blade is

You are absolutely right! I do the same!

? i never been more confused in my life

Hahahahahahahaha!! I second this notion..

And 10 tapes!

I’d forget they were there and buy more 😂

Update on this? I hope it’s going well!

Update please

This is great, and I can relate!

That's a GREAT quote about quotes! Seriously, pun and all!

Exactly! And you have to have that job pay for itself. Or have the capital to be able to float a job until payments are made. So many guys rely on deposits from the next job. That’s a problem, Especially when the economy slows and there isn’t a next job for a bit.

That is definitely where I bombed out. I do everything for myself, so I cannot see why other people would be willing to pay what I would need to charge at minimum. If you cannot ask for what you need to pay you cannot stay in business.

Unfortunately, you’re correct

Then those people go out and still get more bids trying to find a mythical lower bid. They eventually find rookies or charlatans who will quote them even lower. Then mess it up. Then they want you to fix it. But still don't want to pay enough to get it done right!

@@Nphen so it's not just me? I priced a job once, set a start date and two days before the client called and said they were going to have to put it off due to some health issues. That night I got a call from a guy asking me all these questions about how I would do this,and how I would do that. Long story short I out two and two together and figured out it was the job I was supposed to start that got put off. This guy had priced it lower, and then called me wanting me to tell him how to do it, then had the balls to ask if he could borrow my tools to do it. I started to call the client and warn him, but I figured they were meant for each other.

Good decision.

One of my first customers told me this line of bull crap. Fortunately, he was setting off all kinds of other alarm bells and I never did a thing for him. Blocked him and told him to never contact me again. I was lucky, because my previous career had already taught me the lesson. I take a harder line with these people than Scott does. These people are thieves in my opinion. Taking advantage of your trust in their words.

Run away from those con men.

So sorry. I love you man! Keep going

Bro you just read my mind

Sorry to hear that brother

My only comment ever on this channel and it's to say sorry for what happened to your father

My dad just has severe ADD.. he’s so good at what he does and people love him. He makes every customer happy. But he just had so much trouble pricing things appropriately. He would forget something that doubled the labor spent, or he would miscalculate material costs, or something like that. Honestly it’s been the grace of God that he was able to support a family of 9 and a stay at home mom for so many years. I know for a fact there is good money in contract work like we do, but you just have to be meticulous and like he said be willing to lose the bid because you charged too much. I guess when you’re trying to feed seven kids you just don’t feel like you can afford to be underbid by another contractor.

God doesn't exist

@@Adrian2140 what a strange person that sits at home and feels compelled to write stuff like that to a person you'll never meet. I hope life treats you better in future and you learn to grow up a bit. God bless you child.

@@MrJimtimslim God doesn't exist, get on with the times. Religion is holding us back from developing compassion and naturally evolving.

@@Adrian2140 God bless you

Thanks but I'd rather have a nice day instead. Cthulhu bless you.

Yup. Let me tell you ya do one job for cheap and you get 5 others that call and expect it cheap as well. That one was tough to fix. I still get anxious when it’s time to bill customers.

I'm right behind you Mr. Smith. I'm going on 27 years as a GC. A solid 40 years in construction! Throughout these 27 years friends and family have been telling me I don't charge enough for the caliber of work I deliver. I finally started listening a while back and gave myself and my business a raise. I'm busier now than I've ever been!

Been in the construction trades for 10 years, thinking about getting my general contractor's license most likely. If the one thing I've learned in the business management and delivery of a project aspect. The biggest cheat, con artists is the one who delivers a cheap bid and cheap work and gets no satisfaction delivering an end product that will last the test of time. being cheap always costs more because sometimes it is cheaper to tear everything out start from scratch then just try to slap on a coat of paint.

@@klmbuilders5385 same here

Man! Most definitely, my pops used to work side by side with me. What great memories. May God grant me that same grace some day.

I wish all bosses where like him, patient, kind, ( giving the apprentices therapy 90 percent t of the time) doing everything well as it can be, measurements and what not, not at all your typical slobobian contractor, breaking shit, doing g shitty work. It's really about what CLASS you want to serve. If you want to learn good work, you must not market to the survivors...

You hit the nail right on the head. I’m sad to say that there are guys in this line of work that would take advantage of his somber ways.

Oh ya you should watch his video on how to be a better hand! He builds a handy cap ramp for his mom on a house 🏡 ! Fricon bad ass!

Fax

Under promise and over deliver.

Go on you own man, get licensed and insured and find your own work. Learn from your bosses mistakes and you'll make probably 50% more money.

Vicious cycle

Sounds like every machine shop I've been in. Lol

If u underbid but are honest hopefully client will work with you, but that’s a gamble. Go high can always come down.

Me too.I am 55 and still learning.

60 here, I have gotten 90 percent of what I’ve bid on. Fear of losing help because I didn’t have steady work is hard to overcome. The saying, a construction bid is a wild assed guess carried out to two decimal places is true at least in my case. Doing work for a stipulated sum is the scariest thing about being a general contractor. I have no nest egg, no retirement, and it doesn’t look good for the future, despite the fact we accomplished so much and had so many happy customers and referrals due to that. Good luck to everyone that does that.

Me too brother. 48 years. I finally started doing some work for a big company I knew pretty well, and when I saw what they were charging for the same work I do I realized why I went bankrupt before.

@@stevegiboney4493 I've been there. And something I have learned is that the guy who is getting about 40 or 50% of what he bids will make a great living and have plenty of expendable income, and can help take care of those key workers. Raise the prices. My Dad who was a successful contractor for years told me when I was a kid "Just when you start to think your gouging"

Too true, bro, same here. Never too late, though, as the rest of your life starts today.

i love his tolerance to shaky behaviours, sorta like "dont do this or you will hurt yourself really bad. Here is how I do it tho if you want to watch.". This guy understands life and knows its not all rainbows. reminds me of my dad. i should call my dad

Concur.

Good observation.

exactly what i was thinking

At 82, he gives me hope for the next generations. I tried general contracting 50 years ago with A & B licenses gained from service as a Navy officer. Easy to pass the test but by starting at the top got in way over my head. Moved to technology and was able to move up with computers because so few people wanted to learn. It is gratifying to see technology enable the best to teach large numbers who are willing to learn. Some are cut out for construction work. I wasn’t.

Life leader with cool b roll lol

I'm always suspect of people who dangle some future benefit in front of you. I've got to the point where i start looking for a way to disconnect as soon as they do it. They always seem to end up being trouble.

"They seldom ask you to lower your price based on that...." I beg to differ. Im a landscape contractor but its the exact same principle. A small fraction of people wont explicitly ask for a discounted price after bringing up the prospect of more work, but if they do go down this road, its usually followed by telling me how I should give them a break on price. I seldom hear one without the other. How does the (usually naive) prospect of future work have any effect on what i charge on a given job? It doesn't even make sense. They're looking for a finders fee for something that hasn't even happened yet, and isn't a sure thing. Property managers are particularly bad with this in my experience. I've found that the majority of the time this comes up #1, the person is more than wealthy enough to afford anything i could ever do, but is cheap/loves the feeling of getting a discount because theyre a special big shot. #2 whether its future work for them or someone else they know, the vast majority of the time its never realized. Next your going to tell me "I'll buy all the materials", and "You'll be done in no time at all". "What's the price if I pay you in cash?" ..."But the last guy only charged x!" Lol If you want to pay for/give kickbacks for referrals that end in work for you as part of a marketing campaign, that's great. Thats not what I'm talking about.

@@ctdieselnut When somebody asks me to give them a “better price” I always say; “If I lower the price that means that I overpriced the job in the first place! I don’t do that. I price it right the first time. We can talk about removing items or changing materials if you want to change the price.” Honestly, when I’m talking to someone, and they ask for a “deal” it just makes me want to mark their job UP by 10%. The reason I think that is because they are making assumptions that I overprice my jobs and don’t need to earn what I charge. I wonder how they would feel if their boss came to them and asked them to give him a “deal” and work for less on any given project? I don’t actually mark those jobs up because, it never hurts to ask, I guess. If they insist then I give them the “I don’t want to work for you price.” I make sure that the price is high enough that I can deal with them if they go for it anyway. I’m fortunate to be working in a niche in the masonry world so I don’t have a lot of competition. I imagine that it’s different for you in landscaping. But never sell yourself short! I watched my dad run this business for 40 years and he always gave people the “good price”. Good for them… When I took over I more than doubled his prices. Not because I’m greedy but because that is what I need to make a decent living. Ten years later, I’m still surviving. I’m known as the most expensive mason in my area but I’m also known as the mason that’s worth the cost. And you’re right, it does seem to be the people living in the most extravagant homes that want a “deal”. Who knows, maybe that approach is how they earned their wealth. I’d rather be poor and treat people good! I don’t need a 10-million-dollar house and I certainly don’t need it at the expense of other people. We small contractors absolutely earn our money! I have two full time jobs!. 1) Doing masonry work for people 2) Running my business. I can only charge people for #1 and when a customer calculates how much “you just made per hour” they never include all of the hours and expenses needed to run the business.

I thought his name was sam

Different skills. I saw it working as a public defender. Some people are great lawyers, but horrible managers.

Learning a skill, any skill, is different than learning a business. A whole different skill set.

Hi I learned ALMOST EVERY THING FROM MY FATHER , VINCENT PAYNE , THAT MAN COULD DO ANYTHING USING A SLIDE RULE, A PENCIL,& A SHOPPING BAG , THE REST I LEARNED FROM MY MISTAKES..ALWAYS DO YOUR BEST , ALWAYS SURROUND YOUR SELF WITH T H E BEST SUBCONTRACTORS, & ALWAYS KEEP YOUR WORD EVEN WITH THOSE THAT DON'T IF YOU ARE THE BEST NO THE BIGGEST YOU WILL SUCCEED, THOMAS PAYNE, MASTERBUILDERS.

Fuck yeah bud! Have a nice thanksgiving this year and next! Mentors are important, even if you only know them on youtube. I take EC, TOT, AvE, etc very seriously because I know they've made it. Self-actualization is compelling and positive, especially with a cool attitude to boot. Cheers!

BAM!!! ^^^ What he said ^^^ I’m a retired machinist so why am I compelled to soak up the wisdom pouring out of these videos? Because it’s nice to see some still exists and is being shared.

Except mine, I’m older?

Couldn't have said it better myself Uncle Tyler.

He’s like my father in law. Smart as hell!

Not a lot like him left . Unfortunately

Can confirm. btw, he's actually my father.

I follow your videos too. I’m not a professional framer, but a journeyman carpenter/ contractor in Newfoundland. I dabble in a bit of everything. Every time you call for a helper on your channel, I wish I could answer, if only I was living in Ontario..

More like demo. ;-)

Just when I thought I couldn’t love this channel any more, they go in and throw a TPB reference in there!

TPB is the best!

I wish I could give an extra like for including Trailer Park Boys

Oh. My. God. The best way to show how to be professional is to show the inverse, and that's definitely Ricky in that scene. Can't express enough how much the TPB reference is appreciated!

So true here. It really takes someone special who can 1, be a craftsman and learn your trade. 2, be a good businessman and run a business/ company. 3, be a good salesman and instill trust. 4, bidding projects , become proficient at quoting jobs. 5, establishing or having credit. 6, ability to collect and understand you have to get tough (lawyer up), if needed. 6, an understanding wife and family, sometimes it’s long committed days and nights, not everyone is understanding of the commitment needed. 7, good employees, these days it’s so hard to find anyone that wants to work a full day 5 days a week. 8, lastly a little luck goes a long way as well. One costly mistake or injury and it’s all gone. It’s not for everyone.

@@cpmiller1965 Very comprehensive list. Well said. I’m afraid, from that list, my biggest shortcoming would have to be salesmanship. What that will cost you is time. It’s going to take longer for people to get to know you and your abilities. And who has an over-abundance of time? It may also prevent you from branching out, beyond your familiar surroundings. Salesmanship can’t be overlooked.

genius 👌

I'm in IT. Had a boss (director) who was looking for a new job. We were pretty tight so he would confide in me. He went to an interview and these C level exec kept asking him how long a certain project would take. They kept hammering him with this, and he knew that that's all they cared about. Finally, when he knew he wasn't going to take the job he said "That depends, how shitty do you want it?"

A discount.. laughing out loud Do you get a discount at the doctors, or what about at the mechanic shop

@@vanderumd11 and yet people have the guts to ask...

How do you market your handyman business?

@@jaredwaters4633 I've been a handyman for about 15 years, more full time in the last 10. A lot of my referrals come from Nextdoor, existing customers and I'm lucky that 2 local hardware stores refer me quite a bit. The only thing I could call marketing is making sure the hardware stores have my cards. I like the business small, but I stay busy.

Wish I could find someone like you in my town!

I love this channel, it was brilliant!

It made my day to see that

“Let the liquor do the thinkin’, bud.” -Lahey

I bloody love the Trailer Park Boys!

That is one of the funniest skits ever when you come from a construction background. Hilarious!!!

Thanks Stu!!!

When I was in Japan I was impressed to see the attention to detail... Thanks for reminding me that customers are the same the world around!

the politicians in Portland missed it by a long shot also.Best to you.

If you do work for family and friends. It better be the best or they will never forget it and make sure you don't either.

My recommendation is always work for free for friends and family. That way they cannot stiff you, and if they are worth working for they will make it worth your while.

@@vidard9863 Got that right. My policy is it’s either full price or it’s free Nothing in between. And to fix a job after the cheap guy screwed it up, double!

@@oldman6085 Always found that material cost is the way to go for me, if they're unhappy with the work the response is that the work was free, it cost the same as if they were to do it themselves and they would certainly have done a lesser job else they would've done it themselves. Means that it doesn't cost you anything but your time as well.

@@anne_frank_ Your time and your overhead!

Same here watch it at least once a month from LA Ca So true

Your doing gods work. I totally get what you’re saying but honestly being able to teach that lesson is much better for the future of America because I’m in the same boat. Kids who went to vocational school were considered losers and college was made to seem like the only way. I wish I woulda went because I’m hindsight now all the dudes that went to college are the losers and the kids who went to vocational school are laughing to the bank

The quote nails it!

@Paul... In the mean time, come back to this site, it's ok to become a pro.

you can answer also, i make an high bid but i promise low bid for great future work

been running an IT company for 9 years now. started as a contractor and for the first year or two, all I learned was I knew nothing about running a business and if you think it will take 20 hours, it will take 40 hours + lots of coffee

I have a roofing company in NE FL. I love repair work! Fast profit. Easy $!

I own a small 25y sw co and thought the same thing! SW = building, no?

Exactly my reaction too, and though I am an employee most of these lessons are applicable on some level anyway. I do cost/time estimates, I need to be part of handling scaling of work-load, I need to clearly communicate, and I can't afford to cut corners or it will bite me and everyone else in the butt later on, etc. etc. I'm sending this video to an entrepreneurial software developer because I felt it hit so right.

I believe you are correct.

Add that all people communicating on the problem have to have the same sense of the end goal ...ie why they are there. We often end up working with people with all different goals and there's no doubt the last 100 years we are running into people that simply want to own or run the world and dont care about the fundament reason the problem exist or what could be tweaked to fix the problem in the right way that keeps one from having to address the same problem at a later date.

I recently read a book called "the peter principle". It is all explains exactly what you said. Good carpenters don't necessarily make good foremen, and good foremen may not make good managers etc. The book was written in the 1960's and it was a total revelation for me. I could see many of the people I've worked with fitting into the descriptions on the pages. The key point the book makes is "people rise to their level of incompetency". Not good enough at their job to be considered for promotion, yet hierarchy's make it very difficult to demote such a person. Therefore they have reached "Peters plateau".