Ok, let’s break this down a bit. It’s really not all that cryptic. A contractor comes in, measures up,
investigates material and labor costs and then puts a price together. That’s not
hard, right…..I agree. The next part is where the breakdown, or separation comes
in to play. The mark up Richard Panik Jersey , the additional charge that EVERY contractor must add on to the estimate in order to pay the bills. That markup, which is a percentage
cost or amount of each job that needs to put to the side to pay for all the
overhead of the business which includes: general liability, workers compensation
& disability insurance, vehicle costinsurancemaintenance, tool purchases
& maintenance, advertising & on and on and on. Hopefully said
contractor(s) have spent some time adding all of their expenses up, added up
their gross sales from the year before and then determined what % of gross sales
their overhead is. This sounds rudimentary right? Sadly, I believe the
percentage of contractors out there that don’t have a clue as to these facts
& figures for their respective businesses is quite high.
In addition to poor financial diligence in determining a proper mark up Pierre Pilote Jersey , contractors will also fail to price in or compensate themselves for all the functions that a business must provide. Every
function that requires time and effort should be compensated. I haven’t met too
many people that work for free, have you? Other than a volunteer who does work
for free sporadically, that’s not a fair comparison, they don’t volunteer 5 days
a week, 52 weeks a year. A typical contractor will not only do the hands on work
on the job, they will also do the estimating, the field supervision of the job,
the accounting and all the administrative parts of the business. Each one of
these functions requires time & effort….i.e. expense or cost. Most
contractors don’t charge for some if not all of these functions. Who
cares…..right? You will take the cheap price and that’s his problem Patrick Kane Jersey , sounds good, who wouldn’t? Consider a few things the next time you hire “the cheap guy”. When the cheap guy who didn’t price the job
right realizes he is crashing and burning on your job, get ready for some
additional items to pop up (extras). When the cheap contractor who doesn’t have
money in the project to have a project manager on the site and you have
questions and there is nobody around was it worth it? When the cheap contractor
realizes that not only is your job crashing and burning but his entire business
is going down because he got audited by Workers Comp and he would have to work
for free for the next 6 months to pay his bills, how’s that cheap price looking
now? On and on, all the horror stories told by homeowners are birthed the moment
“the cheap guy” is hired. He is the bane of the industry but he lives on in
perpetuity.
If you are looking for a good contractor that understands all sides of the business, the work, the financial side, the customer
relationship side Niklas Hjalmarsson Jersey , the contract legal side he will likely not be “the cheap guy”. I remember one contractor telling me a sales line that really
spoke to me in reference to all of this and it was “You will get the exact job
that you pay for, if you want more you will have to pay
more”.
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