0:50 You started at around 33% and focused the next 12 months to 50% profit. Would you say starting around 35% to 40% and work my way up would be smart? Or should I start at 50%?
Hey Tom, is it realistic to have a minimum charge to show up for smaller jobs? A lot of guys I talk to charge minimum $300-400 for small jobs (less than a full day). So to mortise, paint, and install a door, for example, you’re looking at like $1000 a door. It would be cheaper to charge hourly but then there’s drive time, material pick up, time spent talking to the client, etc. that adds cost to me. Would you estimate the cost to do multiple doors on a labor per door basis or a flat rate for the day x 2??
What about for general contractors regarding new construction. It’s impossible for me to take a $2,000,000 project on a new build and charge $4,000,000 for a gross profit of $2,000,000
You are correct. And that’s why there is no money in new construction. Remodeling and room additions is where the money is at If I’m doing new construction, I multiply my job cost times 1.4. If I’m doing any type of remodeling/room additions i multiply, my job cost x2 all day.
My original understanding of making 50% on a project was that if my cost for the project is $1000 then I would charge atleast $1500. Is that not something you would reccomend or see as a viable method for generating high income longterm?
Alright that makes sense. The way I was shown how to bid was mainly focused on the "markup" and not "gross profit". I can see why 50% gross profit would yield higher income but I do feel like there's still alot of variables at play
@Small Business Defense 100% agreed. In my area there's way to much competition to charge double for a project that just about anyone could do for 1/3 of the price at a 50% gross profit
