I was just wondering how people are marking up there jobs, I have figured out my overhead is right around 26% and I don't have a problem with my pricing that I'm charging for the residental market but I also deal alot with towhnhom and condo assoc and I'm finding that some of my competators are selling jobs for 20% over cost. I realize if I can bring in a large condominum project I could use that profit to carry my overhead but what if that project never comes in?
It was in the BBB report and Angie's List for January 2011.
It's very simple. Know your numbers to the tee! Then use your judgement for profit. Earning 10-13% on a job after you pay yourself, your employees, suppliers and your overhead isn't a bad thing. They call it Business. Cashflow, markup, profit, install it right! If you can't get a profit for your company then why be in business at all?
We are heading up a new project in our area and fighting the larger roofing companies using Subs. They rake in the big bucks, say they are using employees when they aren't. Some of these same companies are the reason that our industry ranked in the top ten scammers in America. The top 10! Things need to change in our industry and the young subs thinking they are making money need smacked in the face from a good accountant. I personally showed a Subcontractor last year that it took him 4 jobs just to start making money. He was able to understand this last March, however didn't change a thing. He never valued my advise and 4 OSHA fines later he will soon be loosing his home. The LARGE Roofing contractor that he Subs from didn't care when he went to him. Then again, why should they? Before comments start, I sat down with him to try and get him and his entire crew to come aboard with me as employees.
Guess I'm way off topic.