5 Secrets Tradesmen Use to Quote a Contracting Job and Make Money
You can master the art of quoting contracting jobs. Your chosen trade should always pay you well; however, we know that in the trades there are times where our knowledge skills and labour are undervalued by customers. The key to being successful in your next contracting job comes down to quoting your job right. Many knowledgeable contractors do great work but have gone bankrupt because they did not master the art of quoting the job to pay themselves first. The next five secrets will help you account for essential costs in your contracting job so you walk away with the money you deserve.
Your Materials Can Make You, Don’t Let Them Break Your Bank Account
When arriving to your next quote to estimate your next contracting job, one of the first things to account for is the materials that you will need. Never rush quoting your contracting job. Even though you are not paid directly for your time during this procedure, the quote is the most important part to be thorough so that you are paid well.
As a contractor, you must always account for all materials that will be needed on the job site. A good way to keep tabs on the necessary materials is to be thorough with your measurements. Know all your distances, lengths and square footage. It is always a good idea to snap some quick pictures, and write jot notes so that you can analyze the job more effectively once you’ve left the potential job site. It is also important at this time to talk to your customer to both get a full picture of the job they want done, and to explain the intricacies of your trade so they understand the details of the labour, materials, process and expertise that will go into the work.
Don’t Put Blind Trust In Your Supplier
In the quote, a contractor must be sure to price out materials effectively. Be thorough when determining whether to purchase your materials from various wholesale suppliers or from big box construction stores. Often times big box stores offer similar materials to your wholesale supplier at a fraction of the cost so it is important not to put blind trust into your supplier when pricing materials for your quote.
When estimating your quote for your next contracting job, as a general rule of thumb, contractors include thirty percent of the total price to be applied towards waste in materials. Should there be less waste, you will be up money.
Schedule Your Next Contracting Job the Right Way
A great contractor always accounts for some delays in delivery of materials. Not all suppliers carry every material in stock when you need it. Complications on the job are also the norm, whether you plan things perfectly or not. Account for delays in your pricing to accommodate these complications. In addition, some difficulties on the job site occur with either an improper installation or other trades people not showing up or not finishing their portions of the job as per the schedule.
Don’t Let Your Transportation Costs Eat Away Your Profits
Certain trades cannot justify including transportation costs in their quote; however, this does not mean that you cannot account for these costs in your total price. Always incorporate insurance, gas, and maintenance costs for your vehicle within your cost of the contracting job. Be sure to only charge a portion of these costs into your final pricing so that you can be competitive in your field.
Your Time is Money, Accurately Assess Your Labour Costs
A good contractor always pays himself first. Account for your time and materials. There is a different method for pricing piece work versus contract jobs. You must know what your cost is per hundred square feet and then determine a price for all labour over and above the hundred square feet.
When estimating your next quote for labour, account for overhead, planning time and coming back to the job to fix up any problems. Always overestimate your time to allow for any problems that could arise. It is essential to build in a percentage of your cost for warranty of installation, so that you don’t eat the time and money on a warranty call.
Estimate Your Clean Up Costs, Then Minimize Them
A commonly assumed cost for clean-up for contractors is ten percent of the total estimate of your quote. A good contractor takes bin fees and weight charges into account. If you chose to haul any waste yourself in the disposal process, you must determine where are you going to take it, and if the facility requires a charge for dumping the materials.
The secret to making money on your contracting job is to lower clean-up costs by ensuring to make minimal mess on the job-site. Also ensure that you, or any employees do not mess up surfaces or finishing work by tracking in dirt and debris onto the jobsite, which could dirty up new carpets or scratch expensive flooring. You must be certain to use tarps, runners, drop cloths, and neoprene safety boot covers to ensure that you do not waste money during your clean-up, and that you leave your job site looking clean and professional.
