As a general contractor in the Philly/NJ area for over 30 years; No two jobs are alike. No matter how careful your pricing is; you can lose your shirt when you're new to the business ( less than 5 years)...Here's a good rule of thumb for estimating; break each area into sections; know what the Square Ft cost is for the sub assemblies; DOUBLE IT. That's what today's market requires because between labor and materials; it's all a guess.
In NH and MASS we don’t give the builders a price for drywall they tell us how much they can get border hoppers for and then We can price match or sit at home The price hasn’t changed in this area since 1996 Still paying $10-$12 a sheet to hang And $12-$14 to tape
Thanks! I have a question about subcontractors and the 50% gross profit, does the 50% cover things like drywall repair for my electrician or is that something I should add on?
If the electrician is charging you $800 you should be billing the customer for at least $1,600. If the electrician didn't include repairing the drywall then you would add that cost like you would any other project to complete it.
@@Luke-fp7ks it's hard loosing bids and thinking you did something wrong. Something I heard recently is you should be priced where you only get 20% of your bids. I've been charging a lot more for my work over the past 2 years and don't regret any jobs I got passed on. There'll always be someone cheaper. You have to do what works for you though, if you're ok making a small percent off of any work you sub out then go for it just remember you're responsible for everything you sub out. I've switched mostly to government contracts lately and never have any bad feelings for jobs I bid higher than someone else. I'd rather not get a contract than to wish I would of charged more. My insurance rates just increased 20% and I'm about to put new tires on my work truck that's almost $1,800 for 6, expenses sneak up quick when you don't price things high enough. Most people don't charge high enough rates and live pay check to pay check. Hope this helps
As a general contractor in the Philly/NJ area for over 30 years; No two jobs are alike. No matter how careful your pricing is; you can lose your shirt when you're new to the business ( less than 5 years)...Here's a good rule of thumb for estimating; break each area into sections; know what the Square Ft cost is for the sub assemblies; DOUBLE IT. That's what today's market requires because between labor and materials; it's all a guess.
In NH and MASS we don’t give the builders a price for drywall they tell us how much they can get border hoppers for and then We can price match or sit at home
The price hasn’t changed in this area since 1996
Still paying $10-$12 a sheet to hang
And $12-$14 to tape
Love it. Thanks Tom. Solid breakdown of different options to use in different scenarios for customers
You bet!
Great video Tom!
Glad you enjoyed it
Thank you. 😊
You’re welcome
Thank you for the content
You're welcome Anthony
Great!
Thanks for watching!
How much does battle ground cost?
Thanks! I have a question about subcontractors and the 50% gross profit, does the 50% cover things like drywall repair for my electrician or is that something I should add on?
If the electrician is charging you $800 you should be billing the customer for at least $1,600. If the electrician didn't include repairing the drywall then you would add that cost like you would any other project to complete it.
@@jongreen9250 just lost a job because the electrical came to 38,000 with the 50% added. Just second guessing the 50% on my reliable subs
@@Luke-fp7ks it's hard loosing bids and thinking you did something wrong. Something I heard recently is you should be priced where you only get 20% of your bids. I've been charging a lot more for my work over the past 2 years and don't regret any jobs I got passed on. There'll always be someone cheaper. You have to do what works for you though, if you're ok making a small percent off of any work you sub out then go for it just remember you're responsible for everything you sub out. I've switched mostly to government contracts lately and never have any bad feelings for jobs I bid higher than someone else. I'd rather not get a contract than to wish I would of charged more. My insurance rates just increased 20% and I'm about to put new tires on my work truck that's almost $1,800 for 6, expenses sneak up quick when you don't price things high enough. Most people don't charge high enough rates and live pay check to pay check. Hope this helps
@@Luke-fp7ks I feel this. I'm thinkin of goin down to 35-40% on the higher priced jobs. But then again they say be confident in your numbers.
Gold.
Thanks!
Direct cost times 2 is the same thing as charging 50% of total job cost, no?
Nope. 100% of COGS