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Old 02-18-2009, 08:55 PM
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PROCUT1 PROCUT1 is offline
LawnSite Platinum Member
 
Join Date: Dec 2003
Location: TN
Posts: 4,839
People dont like bad news.

If theyre daydreaming the last thing they want is to hear all the bad stuff. Its a real mood killer.

My pet peeve on this site is "How much do i charge" threads.

And people laugh at me how I respond to them. They think im an A-hole or just being a jerk.

My response is usually something like......

Post a copy of last years tax returns, a current balance sheet, and a current profit and loss statement along with an equipment list and then I can start to help you.

People read that and either pass it over or wonder what the heck Im asking for that info for.

YOU CANNOT POSSIBLY PRICE A JOB WITHOUT THAT INFORMATION.

What good is you telling me a dollar a minute if my business expenses are 2 dollars a minute?

What good is me telling you I charge $40 an acre? Can you make money at that? I dont know....YOU DONT KNOW.

Pricing is THE EASIEST part of the entire business. It is about as basic as you get.

I posted a very detailed but boring thread about how you come up with your price the right way.

That thread lasted about half a day before it was bumped off the board never to arise again.

Guys dont want to hear the tough answers.

You start talking about overhead percentages, margins, operating hours, billable hours vs. non billable, production times.......Their heads start spinning.

They dont want to learn how to calculate all that complicated stuff out.

They want to hear "The going rate is X"

They want to hear 5 guys all list a similar price for the job.

Then he will put his bid in.

He has no idea if hes making money. The 5 guys that gave him the price have no idea. They heard "the going rate" from 5 other guys....and so on

And if you go by the statistics, 4 out of those 5 guys that you are asking for business advice are a couple years away from going out of business themselves.

Meanwhile theyre laughing at me for asking for vital business information that is required to even think about coming up with a price.

I know nothing about building a patio.
But give me a little information about your business and production times and I can sure as hell price the job for you.

I dont know a geogrid from a cactus, and I dont need to. But ill price that job so you cover your costs and hit your profit.

The real reason for failure in this simple simple business, is lack of business basics.

Most on this board think they know.......They dont.

I thought I knew.....I didnt.
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