What's It Cost You To Operate Your Business For One Hour

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Grab your What to Charge worksheet here:
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Tom Reber is an entrepreneur, business coach, podcaster, leader of The Contractor Fight, creator of Contractor Fight TV and HGTV host. Tom's content has helped hundreds of thousands of home improvement contractors improve their lives and businesses.
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13 мар 2020

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Комментарии : 178

@ErDJua 3 года назад

When he said "the guy who has no fuckin clue" i felt that on a spiritual level 💀

@ericpacheco4823 3 года назад

🤣🤣

@TheJeffro941 4 года назад

I can't begin to say how much I love the brutal honesty that your providing in your content! I am a small time carpenter in southern Florida and am totally going to implement your suggestions into my company. Thanks man!!💯🇺🇸👍🏼🤙🏼🎣

@buhay2108 2 года назад

how's it going? Any update?

@josephbarajas8898 4 года назад

Dude I freaking love your channel and knowledge! Your straight up and real!

@king777dawood6 4 года назад

Amazing info thanks for the quality advice and knowledge your a hero bro!

@FranciscoSanchez-kp6er 3 года назад

Thank you for your videos. Your information is greatly appreciated.

@dewethington3543 4 года назад

Mannnn, this is awesome and thorough. Major props!!!

@escobedoandsonslandscaping2124 3 года назад

Great video! Simple and to the point!

@israelwelding83 7 месяцев назад

Don’t see the work sheet

@GrandpaNutz 4 года назад

Mind blown. 🤯 great stuff!

@stephensvetz6833 3 года назад

Tom This stuff is awesome, Thank you!

@contractorfighttv 3 года назад

Glad it was helpful Stephen!

@scapellisappliancerepairs6603 3 года назад

Thank you ! Great video !

@contractorfighttv 3 года назад

Glad you liked it!

@JonathanEscobar-jz9ml 3 года назад

Thank you!! Great stuff.

@contractorfighttv 3 года назад

Glad you enjoyed it Jonathan!

@austinmcgee428 3 года назад

Bump for this content because I’m to broke to invest is some of the other great things you offer as I was a dumb ass not charging what I need to. Thank you sir. Your like my new coach!

@abr31241 3 года назад

thx im just learning this and this video was real helpful thanks again

@contractorfighttv 3 года назад

Glad it helped!

@Asphaltaperider Год назад

Just opened my business and I've watched this video about 7 times already. What a banger!! This absolutely helps👊🏻👊🏻

@contractorfighttv Год назад

Glad it helped! Thanks for watching.

@alexswedenborg1856 Год назад

We're out of the west coast. Sometimes ya gotta go even HIGHER!! Don't hesitate to go higher. Especially if hard to find the exact product, a harth a counter top...the exact tile!!! Each head ache...GO higher....or each potential head ache...hike it...hike it!!! OK, just had to add my 2 cents...... I also enjoyed the video.

@TheAaronReynolds 2 года назад

Love it. Love what you’re doing Tom. Nice job sir.

@contractorfighttv 2 года назад

Much appreciated Aaron!

@bryanobaez2815 4 года назад

I didn’t learn shit in college. Stupid business degree. This man deserves my 80k tuition.

@runitupron428 22 дня назад

It’s because your professor never owned a business

@anthonyesparsen7776 4 месяца назад

Thank you for your video

@raramuri2013 4 года назад

Thanks for that information I was looking for long time, I ready down load the sheet..👍, I am like a lot of guy who knows how to do the job but not how much to charge .. thanks again

@jeremiahjackson117 3 года назад

Juat getting my momentum in the game and I gotta say, THANK YOU! Dig your style and the content! Much gratitude for your experience and time man.

@contractorfighttv 3 года назад

I appreciate that Jeremy!

@alberthayes4675 2 года назад

How things going 1 ur later ?

@YeahhJaybee 3 года назад

Awesome man

@RealTimPratt Год назад

Good stuff!

@markiemuir7477 3 года назад

Thank you for your time .

@contractorfighttv 3 года назад

My pleasure Markie!

@MystrMystry1 3 года назад

Amazing channel. Has help my business a ton

@contractorfighttv 3 года назад

Happy to help Rob!

@GIGallegosreg 4 года назад

Thanks for the content & the worksheet, though I honestly thought you had this in an excel format (not a PDF) - I'll have to create my own so I can play with the numbers a lot easier

@JTCJTC-vj3ke 2 года назад

thumbs up and subscribed. 🤙

@frankiet3841 2 года назад

This video definitely helped me understand better! I'm not the typical read from a book and learn type of guy. Thanks 👍🏽

@contractorfighttv 2 года назад

Glad to hear it Frankie!

@luisfigueroa3768 2 года назад

GREAT ADVICE

@mattos4720 3 года назад

Like your style bro !!!!

@jerryrobinson958 4 года назад

Man I hated it when people would ask me how much it would cost to replace a door or paint a room. They actually want a set price. I always told them it’s not that simple. Great video. As always- good content

@jeffalan6339 4 года назад

You got that right. My favorite is the over the phone how much does it cost to.... As if calling a store. My first one this year how much would it cost to paint the interior of a garage? Ah, is it two or single. I use to build custom book cases to entertainment centers. No one asked how much just what they were in need of.

@yaircelis1175 Год назад

For repair work on flooring I charge per man hour $50 per head. Typically, if I have 2-3 guys working on a job at 150$ an hour, the job ends up costing the customer a lot less than one man at $50 an hour. I always make sure to give the customer the estimate and make sure they understand it’s an estimate. We also keep track of the hours using an app. To show the customer. Based off of my experience I already know the type of hours we are pulling on a job. Small bathroom repairs take less than 30 hrs in one week. If I got 2-3 guys working that job ends up being about 1200

@marksimon8393 Год назад

Great video, obviously everybody else’s number will be different but at the end it’s a good reference for us to follow. Boss move!

@contractorfighttv Год назад

Boom!

@JoeRoganPodcastirl 2 года назад

So many people keep saying "just price whatever you think you'll get the hang of it." That advice is trash and the reason so many people have to close their business. This is great stuff! I know exactly how much to charge to meet my goals. THANK YOU.

@shalomgconstruction4136 3 года назад

Thank you!

@contractorfighttv 3 года назад

You bet!

@aprilsparks1111 3 года назад

0:57 timeout is on point! Love it

@Emma_Willow_Makila 3 месяца назад

Solid video

@georgeedwards2757 2 года назад

Awesome video

@georgeedwards2757 2 года назад

Please where can I find that worksheet

@byronaguilar7717 2 года назад

PLEASE READ: I want to say THANK YOU! 2 videos is all it took to help me understand the importance of your content. I wish I found this videos before. You have a grateful Low Voltage Contractor on me now. 😎🇺🇸

@contractorfighttv 2 года назад

Wow, thank you Byron! Glad we could help.

@dajago1969 5 месяцев назад

Where is the link to the bills worksheet. I clicked everything. Nothing takes me there.

@favelaservices1764 4 года назад

Thanks

@anaisabelmayor5769 2 года назад

Great video ! Woman contractor here love the content had many laughs 🤪

@karenfray2664 2 года назад

Simple and to the point! Could you please send me a link to the worksheet.

@wespurcell3217 2 года назад

I mean I've written down so many things , I can't watch "educational videos". Anymore. You shred brother, good to be back on and watching...Wes with GPSHAVASU

@ryanduncan2089 3 года назад

Great stuff Tom! Appreciate all your doing! - You wouldn't be able to use this if you had guys working overtime correct?

@contractorfighttv 3 года назад

Use our job costing sheet for that. To figure what you need to charge for a job if you know you will have OT. thecontractorfight.com/jobcosting/

@coastalweldinginnovations8952 4 года назад

✊🏽🇲🇽✊🏽gracias por tu tiempo

@simplelawnservices3883 2 года назад

Fuckin AWESOME!!!! Straight and to the damn point man! Big cheers!

@contractorfighttv 2 года назад

Appreciate that

@gsc76 6 месяцев назад

There is no worksheet in the description.

@pedrojriveragordon6771 3 года назад

From San Juan, Puerto Rico!! Thanks for this great video. Fucking real!!!💪🏽💪🏽🙌🏼

@contractorfighttv 3 года назад

Thanks Pedro

@betterboss 4 месяца назад

Gotta be dialed when it comes to financials and job costing

@anthonyesparsen7776 4 месяца назад

Sure everyone has their own styles but its good to know others

@curtbrownelectricinc.3443 3 года назад

Awesome info! If you are using this formula for estimating projects, would you still add markup on the material?

@contractorfighttv 3 года назад

Yes. This is just establishing your hourly bidding rate.

@curtbrownelectricinc.3443 3 года назад

@@contractorfighttv Amazing. Thanks!

@epenaloza52 Год назад

i followed your example i did all my numbers i figured out my overhead for the month i went with that for the annual overhead. i went out to check out a potential project it was a full kitchen remodel along with some other things remodel the number was in the mid 30k...i don't think they were expecting that number. now where do i find the leads from?

@damianhartman7647 2 года назад

What do you do when the GCs set budget only covers the labor and over head costs of your bid and the material cost are at 50k without any mark up. How would you negotiate that very real scenario?

@DanaJensen2013 2 года назад

Don’t forget the gpm you add onto your material costs! This will get you past your net profit goal

@sjj1072 3 года назад

Hey so once I finish and have my rates, I've come across a speedbump. When I do my calculations on a annual scale my rates cover overhead and an employee's yearly wage. But when I break down the amount of workable hours in the month, theres no way my average cost per one man hour can cover paying him on a weekly or monthly basis (the amunt of workable hours in a week or month) but my number line up annually.

@josiahamaze 3 года назад

IM SO CONFUSED

@jeffytodd4261 3 года назад

Time andMaterial

@supremewindowtinting662 2 года назад

Hello when you said per man hour is that 91 for each person on the field? So will I charge 182 because there are two people out on the field?

@Alichiseled 4 месяца назад

The math isn’t calculating for me. If I have 3 field guys, the 1700 billable hours becomes 5100. When I use this number my daily rate at the end is lower. I don’t understand

@Lawnandgarden 2 месяца назад

Basically your overhead will be divided among 3 crew members cause you have more people working to bring in X amount.

@randyhelgeson1254 Год назад

Thanks for this equation. That really helps. I have a question on bidding by the hours. When you bid. Do you calculate the fact your laborer will be more tired at the end of the day Into the equation? Is there a video on that. All I can find on production rates and times is contractors on the texting forums.

@northernlightsrenovations1710 Год назад

Figure out the number of hours for the job and then add 20%. Also, there is an industry term called "tool time" which is the time actually spent 'on the tools'. Everything else is a waste in terms of getting the job done. Tool time is usually around 70-80 % of the time, hence the need to add 20% (at a minimum) for each job. Other factors include unknown issues that need to be dealt with. I hope that helps.

@jesusm5098 7 месяцев назад

Where is the link for what to charge worksheet?

@rdblawnandlandscaping1613 Год назад

So if this was 2 years ago than what would it be now with all this inflation

@michaelpungitore7292 2 года назад

Where’s the sheet?

@DamionGiacchinoSr 22 часа назад

where is the worksheet?

@timslice2020 6 месяцев назад

What the hell tom where is the link for the worksheet

@chrisdevaughn3182 2 года назад

Can’t find the work sheet

@JaymieHall 4 месяца назад

If you grow the company, increasing the number of employees with similar wages, the formula drops the total cost per man hour (J). What am I missing?

@northernlightsrenovations1710 Год назад

Great advice, but you missed one thing in your calculations..... Every single job I have done ALWAYS has some unforseen obstacle. I'm adding 20% to every job for those situations that are unknown ahead of time. For instance, today the electrician was working in the same space and he slowed us down by being in our way. This is only one example, but there are plenty more. Always add a 20% contingency.

@DieselDom 3 года назад

What if it’s just me and occasionally a part time guy?

@johnteelsexcavatingjohnnys7095 4 года назад

Hi tom, I’m own a small mini ex and bobcat service, is this formula just for the ppl in the field? Or do I have to charge extra for my equipment also? Thanks

@sammaerz61 3 года назад

your equipment should be in the overhead

@danielhausbeck9976 Год назад

In 2023, I be charging: $400.00 per man hour plus materials, plus 1,000% markup on those materials. Plus overtime, plus 1,000% markup on the materials. But I’m also paying skilled labor $65.00-$80.00 per hour starting, plus overtime, plus CPA fees, plus workers comp, my direct cost is usually peanuts, plus insurance, plus Auto Fuel etc. My current direct cost and overhead without employees is: about $6K - $10K per month. With 5 Emloyees: It cost me the employer: 6 figures per month to run my construction company. Which means that my company needs to be growing at least $2.5 million dollars with 1 crew of 5 guy’s in order to have a 50% personal gross profit margin.

@Lawnandgarden Год назад

$65-$80 per hour where you do you live? California?

@danielhausbeck9976 Год назад

@@Lawnandgarden Denver, CO

@danielhausbeck9976 Год назад

In 2021, Denver, Colorado was listed as the 4th highest rent district in the entire country. That means that we’re up there with California.

@DesertReStylers Год назад

Hey Tom, Otis here, so, once you add the materials and get the total job cost with labor materials and overhead & profit do we still take that total and times it by 2 for the bid or estimate? Thanks in advance! awesome video!!!!

@contractorfighttv Год назад

No… not if you did it correctly

@DesertReStylers Год назад

@@contractorfighttv ok thank you again, have a blessed day!

@charlesking678 Месяц назад

How does this work if you pay commission pay?

@Jose-wt2jl 11 месяцев назад

At the end of the video, shouldn’t the amount be less because he is only sending one man to do the job instead of what his calculations came up with for two people? Anyway, great video and information. Appreciate it!

@clergh Год назад

Here’s a simple cheat I learned. Charge material costs X4.

@liers99 Год назад

One thing that I didn’t hear you explain is how it affects the numbers if I am one of the field employees. As the owner my salary is in overhead. So if I include myself in box A but then don’t have a wage to add in box F how does this affect the numbers?

@contractorfighttv Год назад

Charge what you’d charge for that position in the field when it’s not you. And pay yourself owner’s salary

@lrtrimmer 11 месяцев назад

where is the work sheet? cant find it on your website?

@contractorfighttv 11 месяцев назад

The link is in the description

@moballday69 4 года назад

I learned so much in business school unlike some people. This is just one way to skin a cat. Also what about negotiation tactics? People are always looking to get a good deal on both sides.

@contractorfighttv 3 года назад

Negotiation is handled in the the sales process. It's the job of the sales person to uncover the true motive of the prospect...when that is done right 'negotiation' is irrelevant.

@IntaAgain Год назад

Lmao @1:09 i had to go clear my browser history real quick

@antjamnow1286 Год назад

Your video was fucking hilarious man.

@jesusm5098 6 месяцев назад

Where you mentioned using 1700 in the video and multiplying by 2. Can I multiply the 1700 by 3 if we have a crew of 3?

@contractorfighttv 6 месяцев назад

Yes

@bryanwelton1442 4 года назад

Thanks tom I can't wait to get some employees so I can start thinking about this more

@PGGraham 4 года назад

You have at least one employee, I think his name is Bryan. You need to start on this now or you'll never grow.

@ThePorschefan 3 года назад

So, this is a contractor's way of explaining cost accounting, nicely done! If anyone needs simplification, just divide the overhead you spended last year by the billable hours last year & you'll get the hourly overhead rate. On top of that you can add your labor hourly rate by dividing last year gross labor cost by last year billable hours & you'll get your labor hourly rate. You're welcome

@contractorfighttv 3 года назад

Yep. All great ways to do it. The main problem is that 90% of contractors don’t have this info. They don’t track hours. Most don’t have a bookkeeper nor do they have a place to access this info. Which is why I’m in their grill all the time to get their shit together!

@ThePorschefan 3 года назад

@@contractorfighttv Tell me about it! I'm a freelance accountant & contractors are the ones in the most need for my services but also the ones who don't have the money to hire me bc profits get eaten away by overhead or not understanding the difference between markup & margin lol I don't know how some of them are still in business

@PureMediaCreative 3 года назад

How can I calculate it if there are no field employees, only subs? I get zero for billable hours so it jacks up all the calculations?

@PureMediaCreative 3 года назад

Our business model is subs only - no employees and from your awesome video, the owner salary goes into overhead so that puts a "0" in the calculations. What am I missing here?

@texasfencing414 Год назад

All this numbers are correct except when Roberto, Xuan and Carlos show up and they do the job for $7.50 PH minimum wage and you wonder where all the clients at and why they are not calling back after they got your FREE estimate that served a benchmark for their future estimates...Contractor market is oversaturated and this numbers dont apply to every job types or specialty.

@NorthsideMiGo Месяц назад

Don’t blame them just step your shit up bud.

@robertmoran3589 2 года назад

My brake even is 90 dollars for one hour so I charge 150 per hour

@sunshinedesignbuild2321 3 года назад

I just want to make sure I completely understand what you are saying... According to the math in this video that would be $91.00 per man...Per hour? So for two guys that would would be $182.00 per hour? Correct? Thank you in advance. I appreciate the video very much.

@contractorfighttv 3 года назад

Yes. If that's what you came up with from the worksheet.

@mcruz4467 2 года назад

I was doing my calculations and I kept getting un matched figures unless, I was to add the 91 x2 workers, that would make sense, and in my case, its 26 x 10 workers.

@watertiteman Год назад

I don't think so. If a task were to take 1 guy 8 hours to complete, then in theory, 2 guys should be able to complete it in 4 hours. You would not increase your hourly rate, because the man hours would stay the same.

@sunshinedesignbuild2321 Год назад

@@watertiteman It seems like you misunderstood our question but thank you for your input.

@salochoa3840 4 года назад

do we x2 at the end?

@contractorfighttv 4 года назад

No. This is a different way to ensure you charge enough. Add material and mark that up whatever you want.

@johnny2024 2 года назад

Say no more boss !

@danielcreager3915 5 месяцев назад

Does this work for welding not just home construction

@contractorfighttv 5 месяцев назад

Yep

@brianbennett472 2 года назад

Hey!!!! Next video should show what kind of baby shark Voodoo you just used to be able to see that I had my porn screen minimized haha. Definitely subscribed after watching 2 videos. Thanks for the free

@dougthomas5243 4 года назад

Tom, what if I'm doing Service work and only send one guy out on a call? Do I divide that 91.00 by 2? Thanks

@contractorfighttv 4 года назад

What was your hourly rate calculated at? That’s what you charge per hour per guy

@pedroperezsmith9917 4 года назад

This is where I think there was a slight mistake. When Tom makes the calculations for that example he multiplies 91x 48 estimate hours. This calculation $4368 is based using just one employee in the field, but instead he mentions that would pay for two employees, which is wrong. The whole video is amazing, just this example might confuse us with this little mistake. Can you confirm this? Thank a lot!!

@jeremystorm9101 4 года назад

@@pedroperezsmith9917 91 man hours doesn't mean it's just one guy. The 91 hours is total hours on the job for whomever is working. You could have one guy work 40 hours, two different guys on site for 10 hours each and another guy on site for 31 hours which gives you a total of 91 man hours.

@Lawnandgarden Год назад

@@jeremystorm9101 bro you're so confused. $91 is the hourly rate buddy for one worker on the field and 48 hrs is the amount of time estimated for the job.

@RizzleK 4 года назад

If no one owes me shit, why are they always trying to give me more?

@robertjcountryman3727 4 года назад

While doing these calculations on the worksheet I am technically one of the 2 field employees, SO my question is--- if my salary is included in the annual overhead costs (C) how do i adjust (F) to reflect my hourly wages IF i do at all???

@sf49er20 4 года назад

Good question. Maybe im confused, but do these calculations charge for me, as employee, again for my salary, and another time for “profit goal”? So $100,000 of salary, $50,000 “profit goal”, plus my hourly wage, since im on the field as well?

@SorryAboutYourMom 4 года назад

Then you aren't running a contracting business, you're working in a contracting business. Hire a second person to replace you. Keep your desired salary in the Net Profit. Factor what you need to charge to get there. Charge the customers. Get paid. Not trying to sound like an ass, I've just been where you are and need to hear that before I did it. You're trying to own and manage your business not work for it. At least that's what I'm assuming.

@dalewiley1756 4 года назад

@@SorryAboutYourMom You salary belongs in Overhead or Indirect Expense.

@markmanning6773 3 года назад

If you consider billable hours 40 hours per week times 52 and that comes up to 2080. The percentage of 2080 that is 1700 is 82%. If my guys work 5 10s then I would assume I could calculate my billable hrs by this math which would be 50*52*.82* #of field employees?

@PureMediaCreative 3 года назад

I think you are missing holidays, vacation, sick time etc when you go with the straight 52 weeks.

@markmanning6773 3 года назад

I think you’re misunderstanding my math. I did not do a 52 week. I based it on 82% (.82) which should all you mentioned into account

@isidorsiskos2598 4 года назад

So I tried it with just more people and it seems like I have to charge less with more people???

@contractorfighttv 4 года назад

OH hourly rate will be less when spread out over more people. But you’ll only recover it if you fill capacity..

@Thedailygrind824 3 месяца назад

Do you take into consideration the commute to jobs? Or you don’t charge that time?

@contractorfighttv 3 месяца назад

Yes. That should be worked into job hours during your estimate.

@catrinasimpson7238 Год назад

This final amount… the cost for one hour… is this the number to charge per person in the field?

@watertiteman Год назад

No. If you have 2 guys and it takes them one hour, then that's two man hours.

@bryanslater901 9 месяцев назад

How do I get the work sheet?

@contractorfighttv 9 месяцев назад

Have you thought about looking in the description?

@Alichiseled 4 месяца назад

@@contractorfighttvnot there

@michaelmead5880 Год назад

Some of this kind of went over my head towards your average wage per person. If you have two people 25 + 20 = 45 but if you use a blend of 31.5 after your 1.4 multiplayer, how does that cover the cost of two guys doing the work you estimated 40 man hours? Is there something I’m not understanding? Because of you did your math 25+20X1.4= 63 then bill them both out at 31.5 how are you making money when their straight wage alone is costing you 45 before the 1.4?

@michaelmead5880 Год назад

The only way this math makes sense is billing each worker at $91/HR. If you quote something @ 48 man hours but only budget 31.5 per hour in labour and you have Jim and Joe there making $45 per hour and it takes the 48 hours, you’ve lost money. Unless you meant to say if you quote it 48 man hours but the job gets done in 24 hours because you have two people there? I would appreciate your response!

@Lawnandgarden Год назад

Yes I had the same question.

@watertiteman Год назад

@@michaelmead5880 Actually, if you quote something @48 man hours, and you send Jim and Joe, it should only take 24 hours.