Labor Rate for Construction
By Michael StoneI’m frequently asked for the “industry standard” rate per hour for various types of work. There isn’t an industry standard markup, and there isn’t an industry standard hourly labor rate.
How to Calculate Markup
By Michael StoneWhen I teach a class or webinar, sometimes I wonder if my listeners understand what I’m trying to say. After reading some of the questions that came in during a recent webinar, I realized I missed the mark.
Increasing Your Markup
By Michael StoneLike many of you, I read industry magazines to keep up on new ideas. Much of what I read is good, but a recent article titled “Strategies for Increasing Your Markup” requires a comment.
Recover Overhead and Profit in your Labor Rate
By Michael StoneThere are four basic ways to charge for construction services. These are fixed fee or lump sum pricing, Time & Material pricing, Cost Plus, and using an hourly rate.
Pricing Jobs Right
By Michael StoneNot charging enough for your work is the major reason construction companies fail. Here are some of the mistakes contractors make when pricing their jobs.
Adjusting Your Markup Based on the Job
By Michael StoneMany contractors use a variable markup or margin to price jobs. They believe that in the construction industry you have to reduce the price to get the job.
Markup Materials Only?
By Michael StoneIn a perfect world, estimated costs will match actual job costs. At the end of a perfect year, total job costs will equal projected job costs. It’s not a perfect world.
Bookkeeping, Markup, Taxes, Advertising
By Michael StoneThis week I want to catch up on a few things that have been bothering me.
Adjusting Your Markup
By Michael StoneIn Markup & Profit Revisited, we explain how to calculate your markup. We’re often asked if you can adjust your markup based on the length of the job.
Your Labor Rate and Your Markup
By Michael StoneUsing the wrong labor rate, or using someone else’s markup when you don’t know their assumptions, is one of the biggest mistakes we see and the difference can be thousands of dollars.
Markup Worries
By Michael StoneRemember, you’re in business to provide a service and make a profit doing it.
Profit and Loss and Markup
By Michael StoneWhen your books are set up properly, it’s easy to calculate your markup, and it’s also easy to compare your actual results to your estimates.
Taxes and Profit and Markup
By Michael StoneMichael addresses a few different questions we’ve heard recently, primarily dealing with taxes and profit and calculating your markup.
Should I Change My Markup If I’m Not Making Sales?
By Michael StoneShould you change your markup method if you aren’t making sales? Don’t spend hours fiddling with numbers; invest the time in your sales skills.