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#159343 - 12/10/06 11:01 AM job materials
trevman Offline
Member

Registered: 08/17/05
Posts: 47
Loc: canada
In business now for about 6 months,completed 4 residential jobs and 7 small commercial jobs material costs for residential have been between 45 & 50% of total job price per job ,commercial projects have been almost bang on 20% for every job.I have had positive profit results on every job so far. Realising this 30% difference I am now adding 30% to all my residential estimates. I have not received one call back on 4 estimates for residential since raising the bar. I am holding out on this new pricing strategy.

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Business, Office, Estimating, Legal:
#159344 - 12/10/06 11:20 AM Re: job materials
macmikeman Offline
Member

Registered: 07/16/02
Posts: 718
Loc: Honolulu, Hawaii
Trevman, I do a lot of residential. My materials for those run about 20%. I do not supply lights on resi work for the most part, nor smoke detectors. If you supply the cans for recess, then that percentage could go up a few points. You should be pricing your work based on a calculation of all your costs, your overhead, your profit, and your future. You can only have a future if you build that cost back into your jobs. If residential won't provide you enough to have that future you wish for , then dump it and go commercial , service, or something else.

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#159345 - 12/10/06 11:57 AM Re: job materials
trevman Offline
Member

Registered: 08/17/05
Posts: 47
Loc: canada
macmikeman,out of 10 quotes how many would you get on average.

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#159346 - 12/10/06 01:53 PM Re: job materials
macmikeman Offline
Member

Registered: 07/16/02
Posts: 718
Loc: Honolulu, Hawaii
Trev, I have been with the same General's for about 2 decades. I get everything they do. I would say there hit ratio is about 50 percent of the bids they have me submit.

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