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Old 10-15-2013, 11:41 PM
bigpoppa85 bigpoppa85 is offline
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Posts: 14
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 10-15-2013, 11:45 PM
bigpoppa85 bigpoppa85 is offline
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Posts: 14
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, 05:59 AM
ReddensLawnCare ReddensLawnCare is offline
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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, 07:33 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, 08:25 AM
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Vecchio Lawn Care Vecchio Lawn Care is offline
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Location: Bel Air, MD
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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, 09:11 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, 09:18 AM
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alldayrj alldayrj is offline
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Location: Long island, NY
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You don't sell material, you provide it. You can mark up to cover hassle and delivery etc.

Ypu sell labor hours. Charge for them.
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Old 10-16-2013, 09:53 AM
whiffyspark whiffyspark is offline
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What kind of job is it
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Old 10-16-2013, 09:55 AM
bigpoppa85 bigpoppa85 is offline
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Originally Posted by whiffyspark View Post
What kind of job is it
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The job includes putting in 2 beds, planting 3 small ten gallon crape myrtles, 3 5-8 ft blue atlas trees, 1 7-8 ft golden deodora, maiden grass all around, salvia plants and a few others. (Removal of sod, applying edging, hauling in 1 ton of top soil, landscaping fabric, plants, then adding 2 tons of 3"rock instead of mulch). Also includes delivering and installing five ~200 pound boulders.
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Old 10-16-2013, 09:57 AM
bigpoppa85 bigpoppa85 is offline
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Quote:
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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