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With the rising cost of transportation, it now costs me $1/mile for travel, not including my time. The big box stores charge for estimates, and I'm feeling the need to charge for estimates also, especially since most of my projects are under $1000.00. Although most of these jobs can be priced over the phone or by e-mail, I find far too many "shoppers". How can I recoup this cost? Is it reasonable to charge for bids?
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Qualify them as much as possible over the phone, and with this information give them some kind of rough estimate. If they are interested in finding ... Is it Reasonable to Charge for Bids?
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My trouble in the remodeling business is not in the trade but selling the job. I think I need to hire a full time sales person, but how do you put that kind of money out there when your business isn't making the funds to do so?
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In this economic climate, you don't want to take on additional expenses unless you know the work is there. Only hire a salesperson if you have more ... Should I Hire a Full Time Sales Person?
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I am a kitchen and bath remodeling contractor. The bidding software that I use either estimates too high and I lose the job or bids too low and I don't make any money. Do you have any advice on which software to use or any other methods of bidding smartly?
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If you think that the software is estimating too high or too low, then you must have some idea of how much certain projects should cost. Here's a ... Bidding Techniques
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During these tough economic times, are there any tips on where to cut corners without ruining my business?
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Business is cyclical, and if you are over 45 years old like I am, you have been through tough economic times before. It happens in every business, ... Cutting Corners During Tough Times
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Hi Dave. Sometimes I follow-up with a customer that I've given an estimate to, but they say that the price is too high and they are accepting a competing offer. What can I do in these situations? Is there any way to salvage the sale?
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It's a tough question, and one that I'm hearing more and more of in this challenging marketplace. I would recommend qualifying the potential client ... Salvaging the Sale
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I want to be the leader of GC practices and educating homeowners about the ins and outs of environmentally safe construction procedures. It's time to set standards in the construction industry. As a former general contractor, what did you do to stay on the cutting edge? Going "green" is the area my company is focusing on in 2009. What organizations do you recommend? Stephen Edwards - Edwards Builders, Inc.
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Going "green" is the wave of the future in the construction industry. If a general contractor can integrate green building practices into both design ... The Cutting Edge: Going Green
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My selling ability and knowledge of the proper painting systems is how I win my jobs. That doesn't come across when you are forced to give a price without meeting the client. I have never gotten a job without meeting the client, so what do you do when someone tells you to just go and bid on a job without being there?
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When I would go on a sales call for a remodeling project, I would always ask when I could meet the owners at their home. I never got any resistance ... Give a Bid, Sell Yourself
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I am tired of going out on bids, and I see a year later that no one has done the job. I am not getting beat out of it; these people aren't serious, just energy wasters. How do you weed out the tire kickers from the serious consumer?
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You must qualify your potential customers. You must spend an appropriate amount of time on the phone asking them about the scope of their project, ... Qualifying the Customer
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My cleaning company does mostly residential jobs where we frequently have 3 or more jobs in a work day. I was reviewing payroll metrics and discovered that 25% of my payroll hours are "wasted" where employees are sitting in a car between jobs. How can I put this cash flow back into the plus side for me?
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Is there any way to expand your scope of work? Without doing additional work, I don't know how you cut down on travel time. Plumbers and electricians ... How to Avoid Wasted Time
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My husband and I have a small plumbing business together and aren't quite sure how we can make our company grow. We would like to buy another van and hire an employee, but we aren't in a financial situation to do so. Currently we have no business loans, but should we consider taking one out to afford this move? Should it be used to cover wages and benefits when necessary?
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In another business climate, I might recommend getting a business loan, but unless you know that work is waiting, and all you need is another ... Business Loans
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How far should I go for a job? I've considered taking larger, multi-week jobs very far from where I normally work and then setting up a trailer or staying in a motel so I won't be driving back and forth constantly. Is this a common practice? Can this be profitable?
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With work being harder to find in some areas, this is a worthwhile question. It basically comes down to a "cost versus value" analysis. If you do ... How far should I go for a job?
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When looking for employment, what should I consider when hiring non-U.S. citizens?
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There are some big penalties for employing non-legal workers, so make sure that anyone you hire has a current green card, or the appropriate ... Things to consider when you're hiring
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What will be the best method of estimating projects in order to be the most profitable, but still win the job?
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If you want to make money in construction, you need to do more. You need to calculate your overhead costs, or the cost of doing business, including ... How can I increase my profitability?
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I have a question on how much to charge. How do you determine competitive pricing for your area? How do you determine what the competition is charging, so that you know that your pricing is where it should be, and fair?
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I always encourage business owners to join their local professional association. Besides encouraging professional business development, local ... How much should I charge?
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Are there any good tips to get a client to pay you on time? I have a client who lives out of town and doesn't seem in a hurry to pay for work that I did more than a month ago. She never gives any reason, just "I will be up there in a few days, so there is no sense in mailing a check now" - and then doesn't show. The work was a built-in entertainment center. Should I go take it back? Should I file a lien?
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To be paid promptly, you need to set clear expectations. During contract signing, I would review any payment schedule, and I would pay specific ... Should I accept Credit Cards?
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How can I request referrals for only a minimum scope of work? There is plenty of work in my area for larger jobs, but most of my referrals are people who have small jobs, like ceiling fans etc.
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Entire businesses have been built starting with small jobs. That does not mean doing more small projects, it means providing every customer with ... How can I request referrals for only a minimum scope of work? | Ask Dave
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We are opening a new GC company. Is it better to buy your equipment or just rent it?
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In new business, cash is frequently in short supply. Because there are always priorities on where the money can be spent, you have to be very ... Buy or rent equipment
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As a business owner , where is the best place to start to get your business going? I have been trying for 2 years and it's really hard to get the home cleaning service I have started going
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As with any business, you will only survive if you can bring in customers. That is why every successful business is continually marketing their ... Best Place to Start
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My electrician didn't show up for a job yesterday, and that has happened before. What can be done to make my subs work more efficiently with me and my projects?
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Sometimes we have to "train" our trade contractors to meet our expectations. Let me tell you a process that I followed that worked very well in ... Subs not showing up?
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Hello Dave. Me again! Another big obstacle.... I need to purchase 1 or 2 vans to be used for service work and installations for our Heating and Air Conditioning company. How do I begin this process? Who can I trust, and how do I keep from getting ripped off???
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The Internet is changing the way we do business, and that includes the way that we purchase new vehicles. Due to all the information available on ... Work Vehicles
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We’ve been in remodeling business for 7 years. What do you think is the most effective way to stand out from the competition?
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Ask your best customers. Let me explain what I mean. After 7 years in business, you have had a number of successful jobs, and happy customers. ... Stand out from competition
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How can we find good employees?
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This is an age-old question, and I can only review a good suggestion that I was told by a very successful company in northern Virginia. This company ... Find Good Employees
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We just started a new company and I’ve heard different things on which costs to include and which not to include. Do you have any advice on that?
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This is a great question. Talk with a good accountant that has worked with companies in the construction industry. Review all the overhead costs ... Expenses
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This questions is regarding your article "Above the Line, Below the Line". I'm a business owner and I work 70-80 hours a week. Is that normal for the industry? Also, what percentage of my revenue should I be taking as my salary?
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Let's address this as a goal to work toward. This won't happen overnight, but is a worthwhile goal to pursue. As an owner, set a goal to not work ... Work hours, revenue pct
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