Originally Posted by JContracting
As for the guy that thinks you don't have to figure $100+ for fuel. I did an rock removal/install & several plantings installed & some sod, 6 houses away from me, I burned about $75 in fuel between getting material and dumping the removed stuff.
Depending on the task at hand for a job, I figure a minimum of $100 in fuel for my truck. Usually one tank, fuel prices are a bit lower than they were last summer so a full tank is only about $75-$80 so it makes things easier and profits are higher.
*Just because you already have said material that is going to be used does not mean you charge less!!!*
Having material (pavers, retaining wall block, etc.) leftover and keeping it at your shop is a great advantage as you don't have to purchase as much, meaning more profit.
My fuel bill is not that high, I would have to try very hard to burn a full tank of fuel in a day. Then again, it would depend on the truck. If there are pick up and delivery of materials then I do include a cost for that and it would likely be 65 to 250 depending on the load and distance.
I just have a different way of cost alocation than you do.
I run the number pretty hard and look at them perhaps more than I should.
I do not make huge margins but again, I am not considered to be cheap either. People ask me if the E stands for expensive.
I far from a low baller to based on many of the public bids I have participated in and looking at the score cards.
My most recent bid was more than twice the existing budget and I was 30% higher than the low bid. Lucky for me, I still got the job based on reputation.
The bottom line is you have to make enough money on any given job to do it correctly.
I agree, material from inventory needs to be priced into the job because you will need to buy more.