The 50% Gross Profit Rule is Rocket Fuel for Your Contracting Business 🚀
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- Опубліковано 27 лип 2024
- Today I'm going to give you a refresher on the 50% rule, and why all contractors need to pay attention to it.
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It’s been a little over half a year since I started watching, and I must say, I love the 50% profit rule. I find myself ALWAYS having money after a project. I know a lot of contractors take hits just to do a project, but I don’t take shit no more. Of course, there’s bad days, but money is never an issue for the project because I ALWAYS have enough money to cover any downfalls. THANK YOU SO MUCH FOR WAKING ME UP! I’ve been struggling for nothing, all I had to do was pick my sack up! We can all be profitable! Don’t take shit from these clients but also do shit the right way no shortcuts and both parties get the Dub💯💯💯!!
We certainly do it. Only started after watching Contractor fight years ago. We get 50% plus our business overhead as well. This way no overhead even takes away our 50%.
I really appreciate this video. We've been working with investors that like to start and stop different jobs and it just has felt like we're totally underpriced because we're constantly paying out of pocket with little profit. Had I watched this video 6 months ago we may not be in this situation 🤔🤨
This works. Trust me . Thank you!
Thank You for straight talk on this one. Well explained on an important topic. #constructionfightclub #constrcutionknowledge #enjoylife
Greetings contractor flight.
Ontario, Ca best masonry contractor out here
First time learning of the 50% and I comprehend what you are saying. Will implement this to my next job!!
When I price jobs I put a margin on my materials that can range from 15% - 30% depending on the size of the job, so cost of materials then I add margin. Is this how you calculate the materials?
Cool
What should your net profit be?
Maybe a dumb question, but I'll stick my neck out anyway. I'm a contractor, but I'm also a customer. I'm having a retaining wall put in at my house, and if I get a couple bids, and one is $11,250, and one is $15,000, why would I pick the $15K bid? As a contractor, I'd love to be making 50% margin, but as a customer it doesn't make any sense to me.
What value am I adding to the customer by increasing my price arbitrarily? Help me see the justification for it.
Great question Eric Robinson! I am a landscaper myself and install retaining walls. I hit 50% margins quite a bit. The only time I do not is when I am doing something for the first time. To help answer your question. Out of the two bids, who seemed to be the most knowledgeable and professional?
@@raptorturf3734 I used the 2 prices above as an example because they were used in the video. The actual prices I've gotten so far have been within a few hundred dollars of each other.
Hire who you trust.
@@contractorfighttv my question isn’t “who do I hire”; I’m fine with making that decision. My question is, why would a customer pick my proposal with 50% margin vs another with 30%?
...because the price isn't the only factor...you may comparing apples to oranges...
...price is what you pay...value is what you get...
Ive been a tin knocker for almost ten years now, and I feel like I'm ready to go out on my own but I have that fear of failing and failing my family. And advice on how to start up after I get my c-43 contractor license?
The fear doesn’t go away, it just takes new forms.
Don’t let your fear push you away from what makes you happy and what you want to accomplish in your life. You will fail, every one fails, but what’s great about failing is in how it makes you better. To answer your question: talk to an accountant and business lawyer right away to make sure that you have the right people in your corner guiding you and helping you make smart decisions. Also, take the time to make a business plan to outline what you want to accomplish short term and long term.
@@raptorturf3734 that's truly the best advice I've gotten since I've decided to start this new chapter in my life... I love what I do for living and I want this to grow into something bigger mainly for my 5 sons, so they have a better life and a plan B to fall back on if things don't pan out for them with schooling and sports.
Again if you have to be told these day one basics your not gonna make it. Just hang it up lol.
I love your videos but you keep mentioning “the illegals” as if they are direct competition for the licensed contractors which they are not. If any licensed contractor thinks that a person who barely speaks English, who doesn’t have any connections who doesn’t even have a SSN is taking away his job that licensed contractor deserves to be out of business.