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| I charge what it costs me to do a job, plus a reasonable profit margin. If I charge less than that, I'm losing money and it's better to park the equipment and find other work than work for free.
I do lose out on some jobs to lower bids, but either they are more efficient, or are working for free. Either way, I'm not going to drop a bid just to get work. We're as busy as I want to be and my prices are supported by the market, so I figure we're about right.
We don't do fencing, but the rules of contracting are all the same no matter what service you provide.
Jim's numbers make a bit of sense, but there are other things to consider also. On small jobs, it will take you as long to gather materials and move as it does to actually do the work. Factor that in somewhere. Unless you're on a big job, your efficiency won't rise much above 60%, meaning of all the hours on the job, from door to door, you will only produce income (work) 60% of the time. Yeah, some days are better, but repairs, scratching your head, talking to the owner, etc, cuts some days down considerably. Over time, that number has been pretty close for me to use on bids.
Consider your overhead. Insurance cost is a biggie anymore. Pay yourself well, it takes a lot to cover insurance, retirement, and living expenses.
Dave | |
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custom fencing rates?
