Job mark up

I was just wondering how people are marking up there jobs, I have figured out my overhead is right around 26% and I don't have a problem with my pricing that I'm charging for the residental market but I also deal alot with towhnhom and condo assoc and I'm finding that some of my competators are selling jobs for 20% over cost. I realize if I can bring in a large condominum project I could use that profit to carry my overhead but what if that project never comes in?

IF the only consideration is the bottom line cost, then everyone would buy a used Yugo as a car; because they are cheap. Even then, someone would be selling used horse and buggys for less. I say up-sell the heck out of it and differenciate yourself. You have to be really good to do that, but why not? I guarantee you that where people are out there selling jobs for $3,000.00, there are also contractors out there selling the same thing for $10,000.00 and more and they are busy too. go figure.

It was in the BBB report and Angie's List for January 2011.

Good job Soldierboy. We are fighting the same battle it seems. WHere did you get that info about roofing being in the top worst categories BTW?

My salary (and my wife's as OM) is included in O/ head. Profit is beyond that. O/ head has crept up to much more than 26% of gross. We pay ourselves enough to pay all of our personal bills. SHould I make it higher? Add in a vacation? Is your salary in your O/H too yanni?

Most subs 'round here have one thing in common.....they don't have a pot to piss in. Most "contractors" who are working for KASH or giving away work at sub contractor rates have a wife who is supporting their household

It's very simple. Know your numbers to the tee! Then use your judgement for profit. Earning 10-13% on a job after you pay yourself, your employees, suppliers and your overhead isn't a bad thing. They call it Business. Cashflow, markup, profit, install it right! If you can't get a profit for your company then why be in business at all?

We are heading up a new project in our area and fighting the larger roofing companies using Subs. They rake in the big bucks, say they are using employees when they aren't. Some of these same companies are the reason that our industry ranked in the top ten scammers in America. The top 10! Things need to change in our industry and the young subs thinking they are making money need smacked in the face from a good accountant. I personally showed a Subcontractor last year that it took him 4 jobs just to start making money. He was able to understand this last March, however didn't change a thing. He never valued my advise and 4 OSHA fines later he will soon be loosing his home. The LARGE Roofing contractor that he Subs from didn't care when he went to him. Then again, why should they? Before comments start, I sat down with him to try and get him and his entire crew to come aboard with me as employees.

Guess I'm way off topic.

Is that 26% after you have paid yourself? If so, you would be about breaking even if you did the jobs. If you haven't figured in your salary in that, it is only going to cost you about 6% of the total to do the jobs. You don't have to to go to work if it is going to cost you 6% for the "privilege" of doing the work. If they withhold 10% until the job is complete, it is even worse.

I've got news for you, Those guys that are doing the work for 20% over cost aren't selling, they are giving it away. If they were girls, we would call them whores. Even "whores" have overhead, and when their "equipment" wears out, it has to be repaired or replaced with a newer model.

I would do less work and "sell" more so that you have a reasonable profit when everything is said and done. Heck, you could just go and do the work yourself with a couple of guys helping you and your overhead would go way down. It's a young mans game.