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Old 10-16-2013, 12:41 AM
bigpoppa85 bigpoppa85 is offline
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What would you price this job (details)?

I'm new to the business. I'm subcontracting right now. A guy designed the project, my crew and I do the dirty work.

Here are the details:
Materials (at WHOLESALE costs): $1,750.00
Total Labor hours (including me): 66
Extra expenses (gas to/from, equipment rentals):$490.00

So...what would you guys say you would price it as? I'm not talking as a subcontractor, just overall price to hand to customer.
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Old 10-16-2013, 12:45 AM
bigpoppa85 bigpoppa85 is offline
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Quote:
Originally Posted by bigpoppa85 View Post
I'm new to the business. I'm subcontracting right now. A guy designed the project, my crew and I do the dirty work.

Here are the details:
Materials (at WHOLESALE costs): $1,750.00
Total Labor hours (including me): 66
Extra expenses (gas to/from, equipment rentals):$490.00

So...what would you guys say you would price it as? I'm not talking as a subcontractor, just overall price to hand to customer.
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Here's what I'm figuring. You guys tell me where I'm off.
I would say this is a $7,428.14 job. That breaks down as:
Materials: 5,292.06 (wholesale times 3)
Labor: 1,650 (66 hours x $25/hour)
Extras: 486.08 (I rounded up to 490 earlier)

Is wholesale times 3 reasonable? Btw, I wouldn't break down line items on a bid like this with the customer.
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Old 10-16-2013, 06:59 AM
ReddensLawnCare ReddensLawnCare is online now
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300% markup seems high depending on what it is and your hourly rate seems low
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Old 10-16-2013, 10:57 AM
bigpoppa85 bigpoppa85 is offline
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Originally Posted by ReddensLawnCare View Post
300% markup seems high depending on what it is and your hourly rate seems low
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I'm not covering much overhead at $25/hour. However, I am making it up by overcharging on the material. My logic is that, as a newbie, I am always going to be off on the time expected to complete the job (total man hours). I have been low everytime. So to balance that out, I gave myself the cushion of tripling wholesale prices. This gives me a balance where I know I'm not going to underbid hours tremendously.
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Old 10-16-2013, 08:33 AM
AGLA AGLA is offline
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Location: Cape Cod
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Try it and learn from it.

1. were you able to get the job at that price
2. did you estimate the right cost of materials
3. did you estimate the right number of man hours
4. was there enough money to pay you and your help and still cover the cost of your overhead and profit

The less billable hours you have each year, the larger the amount of money you have to recover out of that hourly rate. That does not mean that people want to pay you more per hour to work, but it is a reality that you have to account for.
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Old 10-16-2013, 09:25 AM
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Vecchio Lawn Care Vecchio Lawn Care is offline
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What would you price this job (details)?

I would make the markup 20% and then make your hourly wage $60. $25 is way too low, at least in my area
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Doesn't matter what kind of equipment you run as long as you get the job done correctly and up to par.
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Old 10-16-2013, 10:11 AM
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andersman02 andersman02 is offline
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Id MU the material 100%, this would include regular markup and warranty, $50/MH + expenses brings me to 7300 ish
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Old 10-16-2013, 10:58 AM
bigpoppa85 bigpoppa85 is offline
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Originally Posted by andersman02 View Post
Id MU the material 100%, this would include regular markup and warranty, $50/MH + expenses brings me to 7300 ish
What kind of warranty do you provide? Like a 1 year disease warranty?
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Old 10-16-2013, 01:56 PM
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andersman02 andersman02 is offline
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Originally Posted by bigpoppa85 View Post
What kind of warranty do you provide? Like a 1 year disease warranty?
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1 Year Plant warranty. Covers any plant death other than not watering and acts of god. Tough to tell a customer " you didnt water" during hot months though

A pretty good idea btw is to triple plant costs to find labor, MU + warranty prices. comes out pretty close except for larger plant material (lg Bnb trees and that type of thing)
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Old 10-17-2013, 08:28 PM
clipfert clipfert is offline
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Labor hours way too low.
Mark up way too high.

This formula will not work.

What if you were installing 5 solid gold boulders at 10 million a piece? With your formula your labor if would be 150 million. This example is extreme but you can see what I mean.

If you gave that proposal to someone broken down with your numbers what are you going to do when they tell you they will supply the material? You take the job and will lose big tine on your $25/hr rate.

Mark up your materials 20-30%
Apply your labor rate. This will include your overhead and labor burden.
Add profit margin to above total.
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