Hey I just wanted to make a comment, I watch your videos all the time, and if anybody's coming up with excuses why they can't achieve 100,000 or take over a market ....then that's their limit I don't believe in limits I don't believe there's anything I can't achieve! Hell..., I've already put them vision in my mind to have a franchise and be all across the states in every state. Thank you so much for the videos they have helped me keep my mind focused
Me myself is in the process of starting my own concrete small business I’ve been doing it for 13 years and know the ins and outs of it luckily I already have a name for myself and am well known in my area
Started using a similar formula this year. Working on end of year numbers to see how I did. Like in your first example I am a 1 man show. What’s killing me is production. I simply can’t turn the jobs out fast enough. I’ve got some serious mental blocks on hiring people. In your second example it just hit me that having multiple people producing spreads out the cost of overhead so the man hour is cheaper. Even though total cost for the day is more, production should go up allowing more jobs to be completed in less time. In effect this could also reduce the cost of the job to the customer while still providing my margins. So my next battle is to get through the head trash of hiring and people management.
OMG You hit the nail on the head for me. I'm a one man company who hires subs and managing new business is challenging. I don't want to hire people either so I feel your pain. My main issue is trying to find a tool to manage customers.
@@restorationconcrete I am also a "one man show" started a business this past year and agree with turn around and customer managing. I also find that customers like to add on scope to the end of the work (they pay of course) but it seems to keep dragging the job out and hard to commit to a start date on another customer, etc.
I charge by square footage flat hr rates salery rates all together when I do a project proposal break down all material’s For line items also Linear footage. If there isn’t enough footage to bid on fall or amount then I do a flat rate put it all $ amounts together and that’s my price. But I am getting the concept of asking for $1,000 to $500 up front instead of wasting my time. It is a lot of work to personalize a proposal. But I find my better clients have always went with me cause of the details.
Hey Tom thank you man! I found you yesterday and have probably listens to over 20 hours of you already ! Thank god for the guys like you ! Man you are appreciated
I need a demo on two owners. My business isn’t a sole proprietorship. I’m co owner with my partner and if I aim for 100k a year he needs to as well. Plus our 1 employee.
You lost me at the "excuses" rant. There are a million and one *reasons* (not "excuses") to not pay yourself $100k. Area is a reason. Not an "excuse". One can move, sure. But if they don't, it's for their own reasons. My mom had your mindset and she nearly tanked us the 1st year because she paid herself and invested nothing back into the business. If it wasn't for me being the sensible person, there would be no business. Her authority over the books was revoked and I attained majority partnership to keep this exact shit from happening. NOW we make 6 figures. We had to work and sacrifice for that after at least 2 years of putting a LOT back into the business to build it.
No. It’s still an expense of the business… Pay yourself in the field just like you would pay someone doing that job in the field… And pay yourself owner salary. When you get out of the field your costs are correct.
question what's good markup after this calculation. if im calculating profit and overhead and labor this way. I watched vid and you said 2x but will that be too much?
I wish I could charge this around here. There is literally people that will come in at $50ph... I worked it out and apparently I should charge $192ph. I wouldn't win a job.
Nobody should give an hourly rate as a price and I am learning this as I go as well. Shot myself in the foot have been working for the same customer for a year now at an hourly rate because i was just starting out and it's low but enough for me to keep going and wanting to finish the job etc. I also have a fulltime job and doing this on the side (have hopes to do it full time and quit my other job). I am learning how long things take for me to complete as well so it's a win for me. If you call any contractor in your area and ask them to price a bathroom they will give you a final price without a breakdown. In my area, it will almost always be a round number too, like 10k or something. Those types of jobs factor in materials as well and that is where I think you can be more competitive and on par with others in your industry. Again, I am still learning here but I feel like whenever somebody asks for an hourly rate, they are cheap to begin with and looking to pinch as many pennies as possible. Remember, you have the skill that somebody wants and they will pay you what you are worth, you have to have that mindset, and I admit, I am lacking this mindset but am working toward bettering myself in this area. Time management is not my forte, i have a hard time figuring out how long it'll take to complete the job especially when someone else is working with me. Can't figure out a formula quite yet on that.
The "1" is for the salary given to your worker, the ".4" is the employer contribution for pension plan, employment, worker comp. etc. An example with taxable item bought: buy a hammer for 20$ + tx (5%) the long way_ 20 × .05 = 1.00 20.00 + 1.00 = 21.00 tot owe: 21.00$ short way_ 20.00 × 1.05 = 21.00$
I have a quick question. In your opinion do you think it is better to pay my "Sub Contractors" hourly or a daily rate? I put sub contractors in quotations because I had my 4 guys all get LLC's & I pay them as sub contractors even though they really only work with me every week. I'd love to hear your opinion on this
@@austynjohnson6502 Negative you peon, they all want to grow after they get their experience to become their own businesses owners. They periodically come on estimates with me, learn to prepare proposals and they think/work like business owners. I’m building my guys to get their own bosses and not to be my cheap labor.
I’ve watched a ton of your videos and done several of the number crunching sheets,but for whatever reason this time it kind of clicked that the more employees you have the less you have to charge to meet profit goals. The burden of profit and overhead is shared by the higher billable man hours… funny how simple concepts can become more significant in new light. Thanks again Tom. Now to be able to train my guys to produce billable hours without sharpening my pencil!!
To make that much, I need to charge over $110 an hour. Assuming I can get enough business to work 40 billable hours. Which it's not so bad since I was aiming to charge 100 an hour. However, the challenge I'm having is actually getting leads and building clientele.
Hey I just wanted to make a comment, I watch your videos all the time, and if anybody's coming up with excuses why they can't achieve 100,000 or take over a market ....then that's their limit I don't believe in limits I don't believe there's anything I can't achieve! Hell..., I've already put them vision in my mind to have a franchise and be all across the states in every state. Thank you so much for the videos they have helped me keep my mind focused
Wow. I just realized I’ve been running a non-profit organization for the last 10 years, making barely enough to pay the help (me) 🤯
Time for a change!
You deserve better buddy do it for you and your family
Me too! But if I asked for what I have worked out I would be told to get f#$ked.
@@willhull7842 I hear ya on that one. This is why the good contractors move to the big city and the small towns have shit contractors
Me myself is in the process of starting my own concrete small business I’ve been doing it for 13 years and know the ins and outs of it luckily I already have a name for myself and am well known in my area
God… so much to learn for a new contractor like myself, thanks a lot for all this info Tom…. Seriously THANKS
I’ll be becoming a new contractor soon, what has been the most important things you’ve learned in the past year ? (Good or bad)
Started using a similar formula this year. Working on end of year numbers to see how I did. Like in your first example I am a 1 man show. What’s killing me is production. I simply can’t turn the jobs out fast enough. I’ve got some serious mental blocks on hiring people. In your second example it just hit me that having multiple people producing spreads out the cost of overhead so the man hour is cheaper. Even though total cost for the day is more, production should go up allowing more jobs to be completed in less time. In effect this could also reduce the cost of the job to the customer while still providing my margins. So my next battle is to get through the head trash of hiring and people management.
OMG You hit the nail on the head for me. I'm a one man company who hires subs and managing new business is challenging. I don't want to hire people either so I feel your pain. My main issue is trying to find a tool to manage customers.
@@restorationconcrete I am also a "one man show" started a business this past year and agree with turn around and customer managing. I also find that customers like to add on scope to the end of the work (they pay of course) but it seems to keep dragging the job out and hard to commit to a start date on another customer, etc.
Same here one man show doing stone masonry
That was brilliantly explained. Thank you.
Tom this is awesome! I just made an Excel spreadsheet on your calculation method to suit my needs!
I charge by square footage flat hr rates salery rates all together when I do a project proposal break down all material’s
For line items also Linear footage. If there isn’t enough footage to bid on fall or amount then I do a flat rate put it all $ amounts together and that’s my price. But I am getting the concept of asking for $1,000 to $500 up front instead of wasting my time. It is a lot of work to personalize a proposal. But I find my better clients have always went with me cause of the details.
Hey Tom thank you man! I found you yesterday and have probably listens to over 20 hours of you already ! Thank god for the guys like you ! Man you are appreciated
I need a demo on two owners. My business isn’t a sole proprietorship. I’m co owner with my partner and if I aim for 100k a year he needs to as well. Plus our 1 employee.
As an ESL I need to talk so convinced and confident like you my friend…
Thanks for sharing your experience.
Thanks a 100k! 😉
haha Thank you too!
Thanks tom been getting closer to 100k with your help!
Nice work Bryan! That's great to hear.
You lost me at the "excuses" rant. There are a million and one *reasons* (not "excuses") to not pay yourself $100k. Area is a reason. Not an "excuse". One can move, sure. But if they don't, it's for their own reasons. My mom had your mindset and she nearly tanked us the 1st year because she paid herself and invested nothing back into the business. If it wasn't for me being the sensible person, there would be no business. Her authority over the books was revoked and I attained majority partnership to keep this exact shit from happening. NOW we make 6 figures. We had to work and sacrifice for that after at least 2 years of putting a LOT back into the business to build it.
Where do you get the 1,700 billing hrs from? For a year amount of guys
Thank you Sir .
Most welcome Avelino
This great content thanks guys
Thanks for watching Larry!
I wished I would of seen this earlier. Good stuff.
Loved the video and much appreciated for that valuable information.
How this calculation will work with Subcontractors?
Thank you!
Thanks bro!
Any time Raleigh
Thank you for this. Holy shit. It's a rap now.
Thanks a million
You're welcome Ishan
God bless you
Awesome
Isn’t “double-dipping” a bad practice?
No. It’s still an expense of the business… Pay yourself in the field just like you would pay someone doing that job in the field… And pay yourself owner salary. When you get out of the field your costs are correct.
What if it's a partnership? 50k each?
New contractor here just got my license this past Friday (April 30) any advice you guys are willing to share..
At that $160 price point do you double it to $320 for the 50%?
100k Without a degree, or a Union, I dont think so. When I Engage contractors i want them down at about 32 per hour.
😂 do it yourself for free.
Whats the best app to secure jobs
question what's good markup after this calculation. if im calculating profit and overhead and labor this way. I watched vid and you said 2x but will that be too much?
Who the fuck is you? Fucking genius.
Everyone adds 40% for payroll costs? (workers comp, tax, etc.) Started this year, and all my payroll costs come out to 22%
I say to add 40 u til you figure out your real number. 40 is safe.
@@contractorfighttvthank you Tom!
Tom, when you get this number of what to charge for labor, do you x2 this number?
Heck no
Why 1,700hrs annually and not 2,000hrs?
Sick days, Holiday's, un-billable time like company meetings, etc...
I wish I could charge this around here. There is literally people that will come in at $50ph...
I worked it out and apparently I should charge $192ph. I wouldn't win a job.
It’s doable. Learn to sell. Join our Contractor Sales Pros FB Group.
Nobody should give an hourly rate as a price and I am learning this as I go as well. Shot myself in the foot have been working for the same customer for a year now at an hourly rate because i was just starting out and it's low but enough for me to keep going and wanting to finish the job etc. I also have a fulltime job and doing this on the side (have hopes to do it full time and quit my other job). I am learning how long things take for me to complete as well so it's a win for me. If you call any contractor in your area and ask them to price a bathroom they will give you a final price without a breakdown. In my area, it will almost always be a round number too, like 10k or something. Those types of jobs factor in materials as well and that is where I think you can be more competitive and on par with others in your industry. Again, I am still learning here but I feel like whenever somebody asks for an hourly rate, they are cheap to begin with and looking to pinch as many pennies as possible. Remember, you have the skill that somebody wants and they will pay you what you are worth, you have to have that mindset, and I admit, I am lacking this mindset but am working toward bettering myself in this area. Time management is not my forte, i have a hard time figuring out how long it'll take to complete the job especially when someone else is working with me. Can't figure out a formula quite yet on that.
✅
Hahahaha! Celery! Negative Calories with a C kid!
What is 1.4? A % tage $per sq ft?
The "1" is for the salary given to your worker, the ".4" is the employer contribution for pension plan, employment, worker comp. etc.
An example with taxable item bought:
buy a hammer for 20$ + tx (5%)
the long way_ 20 × .05 = 1.00 20.00 + 1.00 = 21.00 tot owe: 21.00$
short way_ 20.00 × 1.05 = 21.00$
You kinda look like Grant Cardone lol
I have a quick question. In your opinion do you think it is better to pay my "Sub Contractors" hourly or a daily rate?
I put sub contractors in quotations because I had my 4 guys all get LLC's & I pay them as sub contractors even though they really only work with me every week.
I'd love to hear your opinion on this
Go ahead and submit this question to help@thecontractorfight.com with the subject "Q&A" and we'll answer it in an upcoming livestream in our FB group.
That’s very shit of you because you’re not responsible for their workers comp taxes etc some shady scab thing to do
@@austynjohnson6502 Negative you peon, they all want to grow after they get their experience to become their own businesses owners.
They periodically come on estimates with me, learn to prepare proposals and they think/work like business owners.
I’m building my guys to get their own bosses and not to be my cheap labor.
So you pay 1 man $160 a hr but you pay 3 men $71 a hr. Good to know
3 m'en X 71 EACH so he would charge 213 /hr For 3 men crew
Does having a business partner are we trying to pay ourselves 50k each? Or double the formula for us both to be at 100k???
You are the much needed punch in the face I needed! A lot of good info on this channel
Glad it was helpful Joe!
I’ve watched a ton of your videos and done several of the number crunching sheets,but for whatever reason this time it kind of clicked that the more employees you have the less you have to charge to meet profit goals. The burden of profit and overhead is shared by the higher billable man hours… funny how simple concepts can become more significant in new light. Thanks again Tom. Now to be able to train my guys to produce billable hours without sharpening my pencil!!
Joey, we hear this all the time. Sometimes you just have to be ready to hear it. Glad to help!
I’m really confused on the 1700 billable man hours he used in his example for what to charge for labor. Is that 1700 annually for 1 person?
Pay myself $15 an hour
To make that much, I need to charge over $110 an hour. Assuming I can get enough business to work 40 billable hours. Which it's not so bad since I was aiming to charge 100 an hour. However, the challenge I'm having is actually getting leads and building clientele.
Tom I f’ing love you thankyou
Good luck getting jobs at theses rates
How do I get a copy of labor hours work sheet similar work sheets
All resourced are available on our site: thecontractorfight.com/worksheets/
Is this formula the same with operator running heavy equipment? How should I factor in for the machines themselves hourly or include them as overhead?
Thanks for watching. Figure out the day rate the machine costs you and double it and then add your labor. 👊🏻
Good stuff Tom!!
Awesome
Good job
Thanks